Impact of preceding regulatory instruments on the efficiency of basic sanitation service providers.

This article assesses the impact of the Municipal Basic Sanitation Plan (PMSB) and the Municipal Basic Sanitation Policy (PolMSB) on the efficiency of basic sanitation service providers in the municipalities of Santa Catarina. In the first stage, the Data Envelopment Analysis (DEA) method is used to obtain sanitation companies’ efficiency scores for the period from 2012 to 2020. In the second stage, the Tobit model is combined with the Differences in Differences (DiD) method to verify the effect of environmental variables, including PMSB and PolMSB, on the efficiency of signed contracts. The results show that regulation did not promote efficiency concerning maximizing the sector’s production – within the observed period – which showed a decline over the years. Another finding is that sanitation companies operated by municipal public authorities, with the exception of local authorities, demonstrate greater efficiency than private operators. Proof of economies of scale and scope in water and sewage services is also relevant. [ABSTRACT FROM AUTHOR]