Is Efficiency in Urban Water Services related to the Suppliers’ Public or Private Ownership of the Resource?

Abstract

The present study aims to provide an overview of the available literature on the effects of public and private ownership on the efficiency of urban water suppliers. In order to shed more light on this issue, in the first place we offer an analysis of the industry’s current conditions at an international level. Next, we examine the main arguments for and against privatization of water suppliers, followed by a comprehensive survey of the empirical evidence in that regard. Based on that review we conclude that neither public nor private types of water company ownership models have demonstrated to be irrefutably superior in terms of efficiency. However, we point out some of the challenges and offer recommendations for future research.