Water Service in Italy: Public or Private?

By Tiziana Caliman, Paolo Nardi

This paper aims to verify whether and how the ownership model has an impact on the technical efficiency of the Italian water utilities. Some indices of Total-Factor Productivity (TFP) are presented in this analysis. Estimations from a previous econometric study on this technical efficiency are also used. With regard to the objectives of the Galli law and the most recent reform, the empirical results suggest that in the water sector the ownership model has no impact on efficiency, thus confirming the vast existing literature on this topic. In other words, the form of ownership does not influence productivity (this evaluation does not take into account the impact on the quality of service).

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