Sanitation and water services: Who is the most efficient provider public or private? Evidences for Brazil

• Published in: Socio-economic planning sciences 2022-02, Vol.79, p.101149, Article 101149
• Main Authors: de Souza Pereira, Mariana, Magalhães Filho, Fernando Jorge Corrêa, de Morais Lima, Priscila, Tabak, Benjamin Miranda, Constantino, Michel
• Format: Article
• Language: English
• Subjects: Data envelopment analysis (DEA); Economics; Efficiency; Efficiency analysis; Nationalekonomi; Private sector; Public sector; Sanitation; Sanitation services; Services; Sewage disposal; Stochastic frontier analysis (SFA); Wastes; Water and sanitation services; Water supply; Water utilities
• ISSN: 0038-0121; 1873-6041
• DOI: 10.1016/j.seps.2021.101149

The present study analyzes water supply and sewage services in the 95 largest Brazilian cities, using two techniques for analyzing the efficiency boundaries, DEA and SFA. We estimate the efficiency score between the years 2013–2018. The results show that private providers are more efficient than public providers in the water supply service. For the sewage service, we do not find significant differences between public and private providers. The results demonstrate an increase in the sanitary sewage service scores and some declines throughout the analysis, revealing an attempt to increase efficiency in the sewage sector. In the water supply sector, we do not observe an improvement in efficiency. The study suggests the absence of incentives for higher efficiency, requiring the creation of instruments that promote better performance through these services’ regulatory structures. •This article contributes to research on public policy and sanitation.•Study analyzes water supply and sewage services in the 95 largest Brazilian cities.•The results show that private providers are more efficient than public providers in the water supply service.•The study suggests the absence of incentives for higher efficiency.