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This paper tries to show that the conventional wisdom of economies of scale do not apply to small water supplies where simpler technical design and implementation can be used.

TitleLimited applicability of economies of scale to water supplies
Publication TypeJournal Article
Year of Publication1992
AuthorsKatko, TS
Paginationp. 283-289: 4 fig., 1 tab.
Date Published1992-01-01
Keywordsconstruction costs, cost recovery, economic aspects, finland, maintenance costs, rural supply systems
Abstract

This paper tries to show that the conventional wisdom of economies of scale do not apply to small water supplies where simpler technical design and implementation can be used. The paper also points out several advantages of consumer-management in small water supplies. The study utilizes computerized statistical data on Finnish water and sewage works. The paper concludes that economy of scale is noticed only if natural conditions, technology, design criteria, implementation practices and organizations are equal. In small rural systems voluntary contributions and more accurate technical design may result in considerable cost savings.

Notes20 ref.
Custom 1202.7, 264.0

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