Skip to main content
SpringerLink
Log in

Costs and Structure of Technology in the Italian Water Industry

  • Published:
Empirica Aims and scope Submit manuscript

Abstract

This paper analyses from an empirical point of view the technology underlying the Water industry. Firstly, we study the impact of environmental and quality factors on the production process. Secondly, different functional forms are analysed in order to represent the technology. Overall results show that the coefficient of hedonic variables are significant and that the best functional form is the transcendental logarithmic one. Finally, evidence on return to scale depends on the functional form adopted and on the inclusion ofhedonic variables.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Battiato, S. and Giardina, E. (1983) 'Il servizio comunale di acquedotto', in FORMEZ, 'Analisi dei costi dei servizi degli enti locali nel mezzogiorno', Quaderni Regionali 42, 92-126.

    Google Scholar 

  • Caves, D.W., Christensen, L.R., and Tretheway, M.W. (1984) 'Economies of Density Versus Economies of Scale: Why Trunk and Local Services Airline Cost Differ', The Rand Journal of Economics 15(4), 471-489.

    Google Scholar 

  • Clagget,.T. (1994) 'A Cost Function Study of the Providers of TVA Power', Managerial and Decision Economics 15, 63-72.

    Google Scholar 

  • Clark, R.M. and Stevie, R. (1981) 'A Water Supply Cost Model Incorporating Spatial Variables', Land Economics 57(1), 18-320.

    Google Scholar 

  • Crain, W.M. and Zardkoohi, A. (1978) 'A Test of the Property Rights Theory of the Firm: Water Utilities in the United States', The Journal of Law and Economics 21, 395-4080.

    Google Scholar 

  • Feigenbaum, S. and Teeples, R. (1983) 'Public Versus Private Delivery: A Hedonic Approach, Review of Economics and Statistics 65, 672-678.

    Google Scholar 

  • Ford, J.L. and Warford, J.J. (1969) 'Cost Functions for theWater Industry', The Journal of Industrial Economics 18, 53-63.

    Google Scholar 

  • Guldmann, J.M. (1983), 'Modeling the Structure of Gas Distribution Costs in Urban Areas', Regional Science and Urban Economics 13(3), 299-316.

    Google Scholar 

  • Guldmann, J.M. (1984), 'A Further Note on the Structure of Gas Distribution Costs in Urban Areas', Regional Science and Urban Economics 14, 583-588.

    Google Scholar 

  • Guldmann, J.M. (1985), 'Economies of Scale and Natural Monopoly in Urban Utilities: The Case of Natural Gas Distribution', Geografical Analysisi 17(4), 302-317.

    Google Scholar 

  • Hines, L.G. (1969) 'The Long-Run Cost Function of Water Production for Selected Wisconsin Communities', Land Economics 133-140.

  • ISTAT (1991) Acquedotti e reti di distribuzione dell'acqua potabile in Italia-Anno 1987.

  • Nadiri, M.I. and Schankerman, M.A. (1981) 'The Structure of Production, Technological Change and the Rate of Growth of Total Factor Productivity in the U.S. Bell System', in T. Cowing and R. E. Stevenson (eds.), Productivity Measurement in Regulated Industry.

  • Nelson, R.A. and Primeaux, W.J. (1988) The Effects of Competition on Transmission and Distribution Costs in the Municipal Electric Industry', Land Economics 64(4), 338-346.

    Google Scholar 

  • Panzar, J. C. (1989) 'Technological Determinants of Firms and Industry Structure', in Schmolensee, R. and Willig R.D. (eds), Handbook of Industrial Organization 1.

  • Pola, G. and Visco Comandini, V. (1987) 'Applicazione di un modello econometrico al servizio di acquedotto', in Bognetti and Magnani (eds.), I servizi pubblici locali tra equità ed efficienza.

  • Shephard, R.W. (1953) Cost and Production Functions, Princeton University Press, Princeton, N.J.

    Google Scholar 

  • Shin, R.T. and Ying, J.S. (1992) 'Unnatural Monopolies in Local Telephone', Rand Journal of Economics 23(2), 171-183.

    Google Scholar 

  • Spady, R.H. and Friedlaender, A.F. (1978) 'Hedonic Cost Functions for the Regulated Trucking Industry', The Bell Journal of Economics 9(1), 159-179.

    Google Scholar 

  • Teeples, R. and Glyer, D. (1987) 'Cost of Water Delivery Systems: Specification and Ownership Effects', The Review of Economics and Statistics 69, 399-408.

    Google Scholar 

  • Visco Comandini, V. (1985) 'Costi ed offerta del servizio idrico comunale', Economia Pubblica 12, 591-608.

    Google Scholar 

  • Wilson, W.W. (1997) 'Cost Savings and Productivity in the Railroad Industry', Journal of Regulatory Economics 1, 21-40.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Ceris-Cnr, Turin, Italy

    Paola Fabbri

  2. University of Turin, Ceris-Cnr, Turin, Italy

    Giovanni Fraquelli

Authors
  1. Paola Fabbri
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Giovanni Fraquelli
    View author publications

    You can also search for this author in PubMed Google Scholar

Rights and permissions

Reprints and permissions

About this article

Cite this article

Fabbri, P., Fraquelli, G. Costs and Structure of Technology in the Italian Water Industry. Empirica 27, 65–82 (2000). https://doi.org/10.1023/A:1007092212799

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1023/A:1007092212799

Search

Navigation