TD 1059 - Efficiency and Regulation in the Sanitation Sector in Brazil (versão inglês)

Ronaldo Seroa da Motta e Ajax R.B. Moreira / Rio de Janeiro, dezembro de 2004

Regulation in the sanitation sector in Brazil is facing a grear deal of debate regarding the government level in which conceding authority should reside and how private operators can fulfill social objectives. The main objective of this study is to show that these issues are not crucial barriers to the development of the sector when one looks at the productivity performance of the operators. Therefore, we elaborate a detailed analysis of the productivity performance of the current structure of the sanitation sector in Brazil. In doing so, we are able to analyze how jurisdiction of operators as well as the nature of the management, either private or public, has affected performance of the operators. Moreover, we investigate how the absence of tariff regulation has dissipated efficiencies and allowed the practice of monopolistic tariffs.

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