Industry Structure Issues in the Water and Wastewater Sectors in Australia

Economic Papers

Volumn 29, Issue 1, 2010, Pages 48-63

  Abbott, Malcolm ^a   Cohen, Bruce ^b  

^a SWINBURNE UNIVERSITY OF TECHNOLOGY   (Australia)

^b Grattan Institute   (Australia)

Author keywords

competition policy; industry structure; L95; Q25; wastewater; water supply

Indexed keywords

EID: 84907809787     PISSN: 08120439     EISSN: 17593441     Source Type: Journal    
DOI: 10.1111/j.1759-3441.2010.00049.x     Document Type: Article

References (89)

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57. See for instance Bhattacharyyaet al.(1994), Renzetti(1999), Ashton(2000), GarciaandThomas(2001), Shihet al.(2006), NaugesandvandenBerg(2007) and Ashton(2003)
58. See, for example, FordandWarford(1969) who found early evidence that diseconomies of scale might exist in the water sector, and more recently Saalet al.(2007) who found that large water and sewerage businesses operating in England and Wales are characterised by diseconomies of scale
59. FoxandHofler(1985)
60. See, for instance, Kim(1987), FabbriandFraquelli(2000), AntonioliandFillipini(2001), MizutaniandUrakami(2001), FraquelliandGiandrone(2003), Houtsma(2003), FraquelliandMoiso(2005), TynanandKingdom(2005), Sauer(2005), TorresandMorrisonPaul(2006) and Martinset al.(2006)
61. See, for example, FordandWarford(1969), Kim(1987), KimandLee(1998), FabbriandFraquelli(2000), GarciaandThomas(2001), Ashton(2003), FraquelliandMoiso(2005), TorresandMorrisonPaul(2006) and NaugesandvandenBerg(2007)
62. See FraquelliandGiandrone(2003), MizutaniandUrakami(2001) and FraquelliandMoiso(2005)
63. Knapp(1978) and Renzetti(1999)
64. See GarciaandThomas(2001), Garciaet al.(2007), Kim(1987) and KimandClark(1988)
65. SaalandParker(2000), FraquelliandGiandrone(2003), StoneandWebsterConsultantsforOFWAT(2004) and FraquelliandMoiso(2005)
66. See HuntandLynk(1995) and FraquelliandGiandrone(2003)
67. Hayes(1987). See also Garciaet al.(2007), who concluded that separation may be advantageous in some circumstances, and that economies of vertical integration are not significant except for the smallest utilities
68. GarciaandThomas(2001)
69. StoneandWebsterConsultantsforOFWAT(2004)
70. See Lynk(1993), HuntandLynk(1995), FraquelliandGiandrone(2003), FraquelliandMoiso(2005) and Martinset al.(2006)
71. See SaalandParker(2000), who also noted, however, the possibility of some “quality-driven scope economies” in which an improvement in the quality of one output may reduce the cost of producing another
72. See StoneandWebsterConsultantsforOFWAT(2004), although they also note that there is some evidence of scope economies from the integration of water and sewerage production activities, e.g. through the purchase of power for treatment works
73. See Lynk(1993) and HuntandLynk(1995)
74. See Saalet al.(2007), see also SaalandReid(2004)
75. GarciaandThomas(2001)
76. FraquelliandGiandrone(2003)
77. FeigenbaumandTeeples(1983), Byrneset al.(1986), TeeplesandGlyer(1987), Houtsma(2003); see also for Spain –Garcia-Sanchez(2006) and Brazil –daSilvaeSouzaet al.(2007)
78. CrainandZardkoohi(1978), Morgan(1977) and Raffieeet al.(1992)
79. MannandMikesell(1976), Bruggink(1982), FoxandHofler(1985), Lambertet al.(1993), Bhattacharyyaet al.(1994) and Shihet al.(2006)
80. Bhattacharyyaet al.(1995)
81. See, for instance, WallstenandKoser(2005)
82. See Shaoul(1997), BosworthandStoneman(1998) and SaalandParker(2000,2001,2004)
83. See Saalet al.(2007)
84. See SaalandParker(2000), SawkinsandAccam(1994), SaalandReid(2004) and Saalet al.(2007)
85. AubertandReynaud(2005)
86. See Saalet al.(2007). See also SaalandParker(2000,2001,2004), SaalandReid(2004) and ErbettaandCave(2006)
87. Data on the Sydney metropolitan water systems and other capital city data relate to 2007–2008 and come from the National Performance Report 2007–2008: Urban Water Utilities (NationalWaterCommission/WaterServicesAssociationofAustralia,2009). Consumption data are generally below average due to water restrictions being in place
88. It is also noted that there is some progress on this front, for example, in Victoria where work of this nature is being progressed in response to the recommendations of the VCEC inquiry
89. In Australia most states have granted some form of pricing power over water to independent regulators, which suggests that there is more consensus on this issue