Comparison of operational energy requirements in publicly and privately owned U.S. water utilities

One question in the ongoing discussion about privatization in the water industry is whether publicly or privately owned water utilities are more efficient. This study examines the question from an energy perspective using new data from water systems in the United States. Economic theory predicts that privately owned water utilities should use less energy relative to output than their public counterparts. However, no statistically significant difference was found between the two types of systems. This finding aligns with others indicating that privately owned water utilities do not necessarily perform better than publicly owned water utilities and suggests that energy management policies and practices should regard both types similarly.