Oxford Research Encyclopedia of Global Public Health, Feb 23, 2021
Organizations regulating the water sector have major impacts on public health and the sustainabil... more Organizations regulating the water sector have major impacts on public health and the sustainability of supply to households, industry, power generation, agriculture, and the environment. Access to affordable water is a human right, but it is costly to produce, as is wastewater treatment. Capital investments required for water supply and sanitation are substantial, and operating costs are significant as well. That means that there are trade-offs among access, affordability, and cost recovery. Political leaders prioritize goals and implement policy through a number of organizations: government ministries, municipalities, sector regulators, health agencies, and environmental regulators. The economic regulators of the water sector set targets and quality standards for water operators and determine prices that promote the financial sustainability of those operators. Their decisions affect drinking water safety and sanitation. In developing countries with large rural populations, centralized water networks may not be feasible. Sector regulators often oversee how local organizations ensure water supply to citizens and address wastewater transport, treatment, and disposal, including non-networked sanitation systems. Both rural and urban situations present challenges for sector regulators. The theoretical rationale for water-sector regulation address operator monopoly power (restricting output) and transparency, so customers have information regarding service quality and operator efficiency. Externalities (like pollution) are especially problematic in the water sector. In addition, water and sanitation enhance community health and personal dignity: they promote cohesion within a community. Regulatory systems attempt to address those issues. Of course, government intervention can actually be problematic if short-term political objectives dominate public policy or rules are established to benefit politically powerful groups. In such situations, the fair and efficient provision of water and sanitation services is not given priority. Note that the governance of economic regulators (their organizational design, values or principles, functions, and processes) creates incentives (and disincentives) for operators to improve performance. Related ministries that provide oversight of the environment, health and safety, urban and housing issues, and water resource management also influence the long-term sustainability of the water sector and associated health impacts. Ministries formulate public policy for those areas under their jurisdiction and monitor its implementation by designated authorities. Ideally, water-sector regulators are somewhat insulated from day-to-day political pressures and have the expertise (and authority) to implement public policy and address emerging sector issues. Many health issues related to water are caused or aggravated by lack of clean water supply or lack of effective sanitation. These problems can be attributed to lack of access or to lack of quality supplied if there is access. The economic regulation of utilities has an effect on public health through the setting of quality standards for water supply and sanitation, the incentives provided for productive efficiency (encouraging least-cost provision of quality services), setting tariffs to provide cash flows to fund supply and network expansion, and providing incentives and monitoring so that investments translate into system expansion and better quality service. Thus, although water-sector regulators tend not to focus directly on health outcomes, their regulatory decisions determine access to safe water and sanitation.
... ROLE OF THE STATE 4 The declining role of the state in infrastructure investments in the UK 6... more ... ROLE OF THE STATE 4 The declining role of the state in infrastructure investments in the UK 67 Michael G. Pollitt 5 Private initiatives in the England and Wales electricity industry 101 Tanga McDaniel 6 Private financing initiatives in India's telecommunications sector 118 Sunil ...
This paper examines the robustness of efficiency score rankings across four distributional assump... more This paper examines the robustness of efficiency score rankings across four distributional assumptions for trans-log stochastic production-frontier models, using data from 1,221 Japanese water utilities (for 2004 and 2005). One-sided error terms considered include the half-normal, truncated normal, exponential, and gamma distributions. Results are compared for homoscedastic and doubly heteroscedastic models, where we also introduce a doubly heteroscedastic variable mean model, and examine the sensitivity of the nested models to a stronger heteroscedasticity correction for the one-sided error component. The results support three conclusions regarding the sensitivity of efficiency rankings to distributional assumptions. When four standard distributional assumptions are applied to a homoscedastic stochastic frontier model, the efficiency rankings are quite consistent. When those assumptions are applied to a doubly heteroscedastic stochastic frontier model, the efficiency rankings are consistent when proper and sufficient arguments for the variance functions are included in the model. When a more general model, like a variable mean model is estimated, efficiency rankings are quite sensitive to heteroscedasticity correction schemes.
Public Util. Fortn.; (United States), Oct 11, 1969
Recent regulatory decisions and governmental pronouncements have tended to encourage energy resea... more Recent regulatory decisions and governmental pronouncements have tended to encourage energy research and development (R and D). Trends in the level of internally and externally performed R and D indicate that utilities are responding to regulatory initiatives in this direction. However, the author believes a proposed order of the Federal Energy Regulatory Commission would weaken incentives to engage in internal R and D and to support projects external to the firm. The probable reduction in innovative effort could have severe consequences for utility industry productivity advances. The proposed order reinforces the free-rider problem in the area of new technological processes and could cause dramatic shifts away from R and D as firms depended more on others to do their R and D for them. The author acknowledges the support of the Public Utility Research Center at the University of Florida although the conclusions stated in the article are his and not those of any sponsoring organization.
The structure, conduct, and performance of Chinese telecommunications are analyzed to determine r... more The structure, conduct, and performance of Chinese telecommunications are analyzed to determine reform's impact on policy objectives. Recent performance suggests that a more comprehensive reform is needed. However, China's fragmented policy environment makes large-scale reform difficult. Further deregulation of the telecommunication industry requires several related initiatives: reduction of entry barriers, creation of a universal service fund (to defuse stakeholder concerns regarding access), and formation of a cross-sector antitrust regulatory agency (with a special interest in promoting competition where feasible). While these policies could further complicate decision making in a fragmented institutional environment, each initiative is directed at neutralizing powerful stakeholders who can block or delay reform.
This article examines factors that are important for data collection and information initiatives ... more This article examines factors that are important for data collection and information initiatives in the water sector, where government ownership and operation is usually the case. The problems are compounded for fragile, conflict-affected, and low income states. This study presents issues, potential actions, and supporting examples for monitoring and evaluating infrastructure utility performance. "Good practice" examples from developing countries are presented to illustrate the impacts of data availability on sector performance.
AUTHORS' NOTE: Jerome Duncan served as research assistant, working with data provided by the ... more AUTHORS' NOTE: Jerome Duncan served as research assistant, working with data provided by the Federal Trade Commission. This study was prepared with the support of National Science Foundation Grant RDA 75-19064. Additional support was provided by the Public Policy Research Center, University of Florida. Any findings, conclusions, or recommendations expressed herein do not necessarily reflect the views of sponsoring organizations.
A number of studies have emphasized that governance has many components, including accountability... more A number of studies have emphasized that governance has many components, including accountability, autonomy, role clarity, policy coherence (especially as related to objectives), stakeholder participation/engagement, professionalism (capacity), and transparency. This study identifies seven elements affecting infrastructure performance: institutions, interests (stakeholders), information, incentives, ideas, ideals (priorities placed on objectives), and individuals (leadership). It describes how these seven interrelated elements determine how effectively a regulatory system responds to challenges.
Joint ventures are an important organizational form that facilitates inter-firm cooperation; yet,... more Joint ventures are an important organizational form that facilitates inter-firm cooperation; yet, there has been little rigorous analysis of motivations for and implications of joint ventures.1 This investigation focuses on the U.S. chemical industry, an industry in which joint ventures were undertaken than in any other two-digit industry (except petroleum), between 1964 and 1973. This paper presents and tests a model in which firms used joint ventures as a means for augmenting their technological activities. The process of technological agumentation is not restricted to joint ventures, and can be accomplished through other in-house and inter-firm activities; we explore the choise of this particular organizational form with in the chemical industry. Technological and production joint ventures offer, to differing degrees, (1) the expectation of low time lags between the initial investment period in research and development (R&D) and the
This paper updates the literature on water utility benchmarking studies carried out worldwide, fo... more This paper updates the literature on water utility benchmarking studies carried out worldwide, focusing on scale and scope economies. Using meta-regression analysis, the study investigates which variables from published studies influence these economies. Our analysis led to several conclusions. The results indicate that there is a higher probability of finding diseconomies of scale and scope in large utilities; however, only the results for scale economies are significant. Diseconomies of scale and scope are more likely to be found in publicly-owned utilities than when the ownership is mostly private; as would be expected, multi-utilities are more likely to have scale and scope economies.
This paper examines the pari-mutuel industry in Florida and concludes that the present regulatory... more This paper examines the pari-mutuel industry in Florida and concludes that the present regulatory structure has failed to achieve reasonable economic goals of regulation. Specifically, economic rents generated by state-created exclusive territorial franchises are accruing to private individuals rather than the state. In addition, vertical integration and systems of factor payments are discussed in terms of the difficulties they present for effective regulation. The study develops a set of recommendations for restructuring parimutuel regulation which would increase state revenues.
This paper examines how government regulation in developing countries affects the form of corrupt... more This paper examines how government regulation in developing countries affects the form of corruption between business customers and service providers in the telecom sector. We match the World Bank enterprise-level data on bribes with a unique crosscountry telecom regulation dataset collected by Wallsten et al. (2004), finding that 1) strong regulatory substance (the content of regulation) and regulatory governance reduce corruption; 2) competition and privatization reduces corruption; 3) the effects of regulatory substance on corruption control are stronger in countries with state-owned or partially state-owned telecoms, greater competition, and higher telecommunication fees; and 4) bureaucratic quality exert substitution effects to regulatory substance in deterring corruption. Overall, our results suggest that regulatory strategies that reduce information asymmetry and increase accountability tend to reduce illegal side-payments for connections.
What nations do business executives visit for insights about how water utility performance can be... more What nations do business executives visit for insights about how water utility performance can be improved? What company might provide lessons and encouragement for managers? This short article describes how managers at the National Water and Sewerage Company of Uganda (NWSC) were successful in healing an organization that had become fragmented, un-focused, and unproductive. The key lesson is that while no single prescription exists for transforming a corporation, the basic ingredients are well known: thoughtful leadership, careful measurement, performance benchmarking e, open communication channels, strong incentive programs, and well-designed implementation strategies. These components do not always characterize stateowned enterprises, yet they are essential if the Millennium Development Goals for water coverage are to be achieved. Proverbs from Africa are used to reinforce some of the principles for reforming water utilities in developing nations. A person who never travels, believes his mother's cooking is the best in the world. (Kiganda). We need to travel further from home more often. Those who have grown up in wealthy nations cannot fully appreciate the challenges faced by institutions emerging from turmoil. Yet the same organizational sicknesses that have promoted inefficiency, bureaucracy, and complacency in Africa also infect businesses in the developed world-the difference is only a matter of degree. While the business strategies that are improving corporate performance in Africa are the same as those that make a difference in OECD nations, the dramatic impacts serve to highlight the universal elements of sound strategy. Reviewing the steps for healing sick organizations in dire circumstances provides both lessons and inspiration for those attempting to transform enterprises within countries at any stage of development. What can the developed world learn from Africa? First, Africa is not what the press characterizes as the continent of despots, disease, disaster, and despair. It is undergoing a transformation, as Charlayne Hunter-Gault (2006) states in her book, New News Out of Africa: Uncovering Africa's Renaissance. She identifies the political and social changes unleashed by a new generation of leaders. The purpose of this short article is to describe the parallel economic transformations engineered by new business leaders-highlighted by proverbs that capture insights from the region's oral cultures. In an era when globalization is driving
Public-private collaboration in infrastructure projects takes place in a variety of institutional... more Public-private collaboration in infrastructure projects takes place in a variety of institutional frameworks worldwide. This volume considers the different cultural, political and legal settings in the US, UK, Japan and other countries and regions where policymakers are reconsidering traditional mechanisms for raising and deploying capital.
Oxford Research Encyclopedia of Global Public Health, Feb 23, 2021
Organizations regulating the water sector have major impacts on public health and the sustainabil... more Organizations regulating the water sector have major impacts on public health and the sustainability of supply to households, industry, power generation, agriculture, and the environment. Access to affordable water is a human right, but it is costly to produce, as is wastewater treatment. Capital investments required for water supply and sanitation are substantial, and operating costs are significant as well. That means that there are trade-offs among access, affordability, and cost recovery. Political leaders prioritize goals and implement policy through a number of organizations: government ministries, municipalities, sector regulators, health agencies, and environmental regulators. The economic regulators of the water sector set targets and quality standards for water operators and determine prices that promote the financial sustainability of those operators. Their decisions affect drinking water safety and sanitation. In developing countries with large rural populations, centralized water networks may not be feasible. Sector regulators often oversee how local organizations ensure water supply to citizens and address wastewater transport, treatment, and disposal, including non-networked sanitation systems. Both rural and urban situations present challenges for sector regulators. The theoretical rationale for water-sector regulation address operator monopoly power (restricting output) and transparency, so customers have information regarding service quality and operator efficiency. Externalities (like pollution) are especially problematic in the water sector. In addition, water and sanitation enhance community health and personal dignity: they promote cohesion within a community. Regulatory systems attempt to address those issues. Of course, government intervention can actually be problematic if short-term political objectives dominate public policy or rules are established to benefit politically powerful groups. In such situations, the fair and efficient provision of water and sanitation services is not given priority. Note that the governance of economic regulators (their organizational design, values or principles, functions, and processes) creates incentives (and disincentives) for operators to improve performance. Related ministries that provide oversight of the environment, health and safety, urban and housing issues, and water resource management also influence the long-term sustainability of the water sector and associated health impacts. Ministries formulate public policy for those areas under their jurisdiction and monitor its implementation by designated authorities. Ideally, water-sector regulators are somewhat insulated from day-to-day political pressures and have the expertise (and authority) to implement public policy and address emerging sector issues. Many health issues related to water are caused or aggravated by lack of clean water supply or lack of effective sanitation. These problems can be attributed to lack of access or to lack of quality supplied if there is access. The economic regulation of utilities has an effect on public health through the setting of quality standards for water supply and sanitation, the incentives provided for productive efficiency (encouraging least-cost provision of quality services), setting tariffs to provide cash flows to fund supply and network expansion, and providing incentives and monitoring so that investments translate into system expansion and better quality service. Thus, although water-sector regulators tend not to focus directly on health outcomes, their regulatory decisions determine access to safe water and sanitation.
... ROLE OF THE STATE 4 The declining role of the state in infrastructure investments in the UK 6... more ... ROLE OF THE STATE 4 The declining role of the state in infrastructure investments in the UK 67 Michael G. Pollitt 5 Private initiatives in the England and Wales electricity industry 101 Tanga McDaniel 6 Private financing initiatives in India's telecommunications sector 118 Sunil ...
This paper examines the robustness of efficiency score rankings across four distributional assump... more This paper examines the robustness of efficiency score rankings across four distributional assumptions for trans-log stochastic production-frontier models, using data from 1,221 Japanese water utilities (for 2004 and 2005). One-sided error terms considered include the half-normal, truncated normal, exponential, and gamma distributions. Results are compared for homoscedastic and doubly heteroscedastic models, where we also introduce a doubly heteroscedastic variable mean model, and examine the sensitivity of the nested models to a stronger heteroscedasticity correction for the one-sided error component. The results support three conclusions regarding the sensitivity of efficiency rankings to distributional assumptions. When four standard distributional assumptions are applied to a homoscedastic stochastic frontier model, the efficiency rankings are quite consistent. When those assumptions are applied to a doubly heteroscedastic stochastic frontier model, the efficiency rankings are consistent when proper and sufficient arguments for the variance functions are included in the model. When a more general model, like a variable mean model is estimated, efficiency rankings are quite sensitive to heteroscedasticity correction schemes.
Public Util. Fortn.; (United States), Oct 11, 1969
Recent regulatory decisions and governmental pronouncements have tended to encourage energy resea... more Recent regulatory decisions and governmental pronouncements have tended to encourage energy research and development (R and D). Trends in the level of internally and externally performed R and D indicate that utilities are responding to regulatory initiatives in this direction. However, the author believes a proposed order of the Federal Energy Regulatory Commission would weaken incentives to engage in internal R and D and to support projects external to the firm. The probable reduction in innovative effort could have severe consequences for utility industry productivity advances. The proposed order reinforces the free-rider problem in the area of new technological processes and could cause dramatic shifts away from R and D as firms depended more on others to do their R and D for them. The author acknowledges the support of the Public Utility Research Center at the University of Florida although the conclusions stated in the article are his and not those of any sponsoring organization.
The structure, conduct, and performance of Chinese telecommunications are analyzed to determine r... more The structure, conduct, and performance of Chinese telecommunications are analyzed to determine reform's impact on policy objectives. Recent performance suggests that a more comprehensive reform is needed. However, China's fragmented policy environment makes large-scale reform difficult. Further deregulation of the telecommunication industry requires several related initiatives: reduction of entry barriers, creation of a universal service fund (to defuse stakeholder concerns regarding access), and formation of a cross-sector antitrust regulatory agency (with a special interest in promoting competition where feasible). While these policies could further complicate decision making in a fragmented institutional environment, each initiative is directed at neutralizing powerful stakeholders who can block or delay reform.
This article examines factors that are important for data collection and information initiatives ... more This article examines factors that are important for data collection and information initiatives in the water sector, where government ownership and operation is usually the case. The problems are compounded for fragile, conflict-affected, and low income states. This study presents issues, potential actions, and supporting examples for monitoring and evaluating infrastructure utility performance. "Good practice" examples from developing countries are presented to illustrate the impacts of data availability on sector performance.
AUTHORS' NOTE: Jerome Duncan served as research assistant, working with data provided by the ... more AUTHORS' NOTE: Jerome Duncan served as research assistant, working with data provided by the Federal Trade Commission. This study was prepared with the support of National Science Foundation Grant RDA 75-19064. Additional support was provided by the Public Policy Research Center, University of Florida. Any findings, conclusions, or recommendations expressed herein do not necessarily reflect the views of sponsoring organizations.
A number of studies have emphasized that governance has many components, including accountability... more A number of studies have emphasized that governance has many components, including accountability, autonomy, role clarity, policy coherence (especially as related to objectives), stakeholder participation/engagement, professionalism (capacity), and transparency. This study identifies seven elements affecting infrastructure performance: institutions, interests (stakeholders), information, incentives, ideas, ideals (priorities placed on objectives), and individuals (leadership). It describes how these seven interrelated elements determine how effectively a regulatory system responds to challenges.
Joint ventures are an important organizational form that facilitates inter-firm cooperation; yet,... more Joint ventures are an important organizational form that facilitates inter-firm cooperation; yet, there has been little rigorous analysis of motivations for and implications of joint ventures.1 This investigation focuses on the U.S. chemical industry, an industry in which joint ventures were undertaken than in any other two-digit industry (except petroleum), between 1964 and 1973. This paper presents and tests a model in which firms used joint ventures as a means for augmenting their technological activities. The process of technological agumentation is not restricted to joint ventures, and can be accomplished through other in-house and inter-firm activities; we explore the choise of this particular organizational form with in the chemical industry. Technological and production joint ventures offer, to differing degrees, (1) the expectation of low time lags between the initial investment period in research and development (R&D) and the
This paper updates the literature on water utility benchmarking studies carried out worldwide, fo... more This paper updates the literature on water utility benchmarking studies carried out worldwide, focusing on scale and scope economies. Using meta-regression analysis, the study investigates which variables from published studies influence these economies. Our analysis led to several conclusions. The results indicate that there is a higher probability of finding diseconomies of scale and scope in large utilities; however, only the results for scale economies are significant. Diseconomies of scale and scope are more likely to be found in publicly-owned utilities than when the ownership is mostly private; as would be expected, multi-utilities are more likely to have scale and scope economies.
This paper examines the pari-mutuel industry in Florida and concludes that the present regulatory... more This paper examines the pari-mutuel industry in Florida and concludes that the present regulatory structure has failed to achieve reasonable economic goals of regulation. Specifically, economic rents generated by state-created exclusive territorial franchises are accruing to private individuals rather than the state. In addition, vertical integration and systems of factor payments are discussed in terms of the difficulties they present for effective regulation. The study develops a set of recommendations for restructuring parimutuel regulation which would increase state revenues.
This paper examines how government regulation in developing countries affects the form of corrupt... more This paper examines how government regulation in developing countries affects the form of corruption between business customers and service providers in the telecom sector. We match the World Bank enterprise-level data on bribes with a unique crosscountry telecom regulation dataset collected by Wallsten et al. (2004), finding that 1) strong regulatory substance (the content of regulation) and regulatory governance reduce corruption; 2) competition and privatization reduces corruption; 3) the effects of regulatory substance on corruption control are stronger in countries with state-owned or partially state-owned telecoms, greater competition, and higher telecommunication fees; and 4) bureaucratic quality exert substitution effects to regulatory substance in deterring corruption. Overall, our results suggest that regulatory strategies that reduce information asymmetry and increase accountability tend to reduce illegal side-payments for connections.
What nations do business executives visit for insights about how water utility performance can be... more What nations do business executives visit for insights about how water utility performance can be improved? What company might provide lessons and encouragement for managers? This short article describes how managers at the National Water and Sewerage Company of Uganda (NWSC) were successful in healing an organization that had become fragmented, un-focused, and unproductive. The key lesson is that while no single prescription exists for transforming a corporation, the basic ingredients are well known: thoughtful leadership, careful measurement, performance benchmarking e, open communication channels, strong incentive programs, and well-designed implementation strategies. These components do not always characterize stateowned enterprises, yet they are essential if the Millennium Development Goals for water coverage are to be achieved. Proverbs from Africa are used to reinforce some of the principles for reforming water utilities in developing nations. A person who never travels, believes his mother's cooking is the best in the world. (Kiganda). We need to travel further from home more often. Those who have grown up in wealthy nations cannot fully appreciate the challenges faced by institutions emerging from turmoil. Yet the same organizational sicknesses that have promoted inefficiency, bureaucracy, and complacency in Africa also infect businesses in the developed world-the difference is only a matter of degree. While the business strategies that are improving corporate performance in Africa are the same as those that make a difference in OECD nations, the dramatic impacts serve to highlight the universal elements of sound strategy. Reviewing the steps for healing sick organizations in dire circumstances provides both lessons and inspiration for those attempting to transform enterprises within countries at any stage of development. What can the developed world learn from Africa? First, Africa is not what the press characterizes as the continent of despots, disease, disaster, and despair. It is undergoing a transformation, as Charlayne Hunter-Gault (2006) states in her book, New News Out of Africa: Uncovering Africa's Renaissance. She identifies the political and social changes unleashed by a new generation of leaders. The purpose of this short article is to describe the parallel economic transformations engineered by new business leaders-highlighted by proverbs that capture insights from the region's oral cultures. In an era when globalization is driving
Public-private collaboration in infrastructure projects takes place in a variety of institutional... more Public-private collaboration in infrastructure projects takes place in a variety of institutional frameworks worldwide. This volume considers the different cultural, political and legal settings in the US, UK, Japan and other countries and regions where policymakers are reconsidering traditional mechanisms for raising and deploying capital.
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