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dc.contributor.authorWorthington, Andrew C.
dc.contributor.authorHiggs, Helen
dc.contributor.editorNguyen, Tom
dc.date.accessioned2020-01-16T07:57:20Z
dc.date.available2020-01-16T07:57:20Z
dc.date.issued2011
dc.identifier.issn1837-7750
dc.identifier.otherRePEc:gri:epaper:economics:201109
dc.identifier.urihttp://hdl.handle.net/10072/390434
dc.description.abstractThis paper estimates economies of scale and scope for 55 major Australian urban utilities over the period 2005/06 to 2008/09. Operating and capital costs are specified as a function of chemical and microbiological compliance, water losses, water quality and service, water main breaks, total connected properties, and urban water supplied. The input variables used to help determine water utility costs include the density of properties served and the sourcing of water from bulk suppliers, groundwater, recycling and surface water. The evidence suggests strong economies of scale at relatively low levels of output (50-75% of mean output). In terms of product-specific economies of scale (increasing an output in isolation), there is substantially stronger evidence that the operating costs of urban water utilities would benefit from increasing chemical compliance, reducing water quality and service complaints, and increasing the number of connected properties, while capital costs would benefit from reducing water losses and the number of water main breaks. For economies of scope, it is clear that there are substantial cost benefits from the joint production of treated quality water delivered across a network with minimal water losses and main breaks. The main cost advantage at all levels of output is decreasing water losses, and this would appear to benefit both operating and capital costs.
dc.format.extent29 pages
dc.languageEnglish
dc.publisherGriffith University
dc.publisher.placeBrisbane, Australia
dc.relation.ispartofpagefrom1
dc.relation.ispartofpageto29
dc.subject.keywordsD24 - Production; Cost; Capital, Total Factor, and Multifactor Productivity; Capacity
dc.subject.keywordsC21 - Single Equation Models; Single Variables: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions
dc.subject.keywordsL95 - Gas Utilities; Pipelines; Water Utilities
dc.subject.keywordsEconomies of scale
dc.subject.keywordseconomies of scope
dc.subject.keywordscost efficiency
dc.subject.keywordsurban water utilities
dc.title2011-09: Economies of scale and scope in Australian urban water utilities (Working paper)
dc.typeReport
dc.type.descriptionDiscussion Paper
gro.facultyGriffith Business School
gro.description.notepublicEconomics and Business Statistics
gro.rights.copyrightCopyright © 2010 by author(s). No part of this paper may be reproduced in any form, or stored in a retrieval system, without prior permission of the author(s).
gro.date.issued2011
gro.hasfulltextFull Text
gro.griffith.authorWorthington, Andrew C.
gro.griffith.authorHiggs, Helen


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