Water in Mexico City: diseconomies of scale and intermediate technologies
DOI:
https://doi.org/10.18504/pl2958-006-2021Keywords:
diseconomies of scale, Mexico City, economies of scale, appropriate technologies of water, water crisis, increasing costs of waterAbstract
The aim of this research is to examine theoretically and empirically the diseconomies of scale and intermediate technologies of the water sector in Mexico City. The demographic concentration of the city can decrease the average costs of public goods, such as water. However, to a point, these costs can grow and lead to diseconomies of scale. The production and distribution of water both generate different costs. The costs that are the focus of this study are production costs. This article presents theoretical and statistical evidence of the continuing tendency towards diseconomies of scale in the production of water in Mexico City, since the 1970s. Questions are raised as to whether this tendency can be solved with intermediate or appropriate technologies.
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