You are here:
ECONOMIES OF SCALE AND SCOPE IN WATER SUPPLY
Citation:
Kim, H. AND R. Clark. ECONOMIES OF SCALE AND SCOPE IN WATER SUPPLY. U.S. Environmental Protection Agency, Washington, D.C., EPA/600/J-88/557 (NTIS PB91163519).
Description:
This study examines the multiproduct nature of water supply relative to economies of scale and scope. he water utility is viewed as a multiproduct firm providing residential and nonresidential services with spatial variation. here are no significant economies of scale in the utility's overall operation. he utility, however, enjoys considerable economies for nonresidential water supply but suffers from diseconomies in residential supply. he economies of scale achieved in water treatment are mostly lost in the distribution of water. he utility on the whole experiences economies of scope associated with joint production of the two services. urthermore, water utilities have no perceptible tendency to behave as a natural monopoly.
