Efficiency of wastewater treatment facilities: The influence of scale economies

The water cycle, from catchment to discharge, is a sector that involves an important investment and operation and maintenance costs. In particular, sewage treatment is a challenge for governments because they are having to consider economic, environmental, and social aspects. Within the European Union, implementation of Directive 91/271/EEC is responsible for the location of wastewater treatment facilities in the territory, due to the requirement that all urban areas must have this infrastructure to reduce the environmental impact of treated water in water bodies. Different sizes of municipalities affect the design of each wastewater treatment plant (WWTP) and cause variations in the operation process. The presence of scale economies in this sector has a significant influence on the efficiency of the wastewater treatment process and has a direct impact on the operational costs. Based on the pursuit of economic and environmental efficiency, this analysis extends the scope of the current literature because it recommends a specific, population equivalent (p.e.) range for which it would be suitable to achieve efficiency in wastewater treatment facilities-shedding light on the open debate about scale economies in WWTPs.