Economies of Scale in Sewage Treatment Using a Translog Cost Function (초월대수 비용함수를 이용한 하수도 부문의 규모의 경제성 평가)

박선영; Seung-Hoon Yoo (유승훈); Chongwon Kim (김종원)

doi:10.15793/kspr.2012.74..003

Economies of Scale in Sewage Treatment Using a Translog Cost Function

The Korea Spatial Planning Review
2012, 74(), pp.35-46
DOI : 10.15793/kspr.2012.74..003
Publisher : 국토연구원
Research Area :

박선영 ¹, Seung-Hoon Yoo ², Chongwon Kim ³

¹고려대학교 경제연구소
²서울과학기술대학교
³국토연구원

Accredited

ABSTRACT

The Korean Government announced integration plans for sewerage operation in order to prevent the waste of management cost and excessive investment on sewage treatment equipments which is respectively executed by local governments. Currently, the cost-recovery rate of Korea’s sewer treatment is very low at 38.3%, with local governments managing their own sewer sector. Many of them suffer from financial deficit, which in turn fails to secure economy of scale. A case study of Busan, Ulsan, Gyoungsangnam-do, and Gyounsangbuk-do was performed to discover cost function of sewerage section from 1998 to 2009, employing translog cost function. Estimates suggest the existence of economies of scale. These findings said that moderate cost savings from prudent mergers could be expected. In addition, these results could be understood that integration and area-widening can improve efficiency of sewage treatment section.

KEYWORDS

Economies of Scale, Sewage Treatment, Variable Cost Function, Translog Cost Function, Spatial Integration

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* References for papers published after 2023 are currently being built.

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The Korea Spatial Planning Review 2023 KCI Impact Factor : 1.2

Economies of Scale in Sewage Treatment Using a Translog Cost Function

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Citation status

* References for papers published after 2023 are currently being built.

The Korea Spatial Planning Review 2023 KCI Impact Factor : 1.2

Economies of Scale in Sewage Treatment Using a Translog Cost Function

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KEYWORDS

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* References for papers published after 2023 are currently being built.