A meta-regression analysis of benchmarking studies on water utilities market structure

This paper updates the literature on water utility benchmarking studies developed worldwide, focusing on scale and scope economies. Using meta-regression analysis, the study investigates which variables from published studies influence these economies. Our analysis yields several conclusions. The results indicate that there is a higher probability of finding diseconomies of scale and scope in large utilities; however, only the results for scale economies are significant. Diseconomies of scale and scope are more likely to be found in publicly-owned utilities than when the ownership is private; as would be expected, multi-utilities are more likely to have scale and scope economies.

► This paper investigates variables that influence scale and scope economies in water utilities. ► A meta-regression analysis was applied to studies developed worldwide. ► We concluded that there is a higher probability of finding diseconomies in large utilities. ► Scale and scope diseconomies are more likely to be found in publicly-owned utilities. ► We also found that multi-utilities are more likely to have scale and scope economies.