This study examines the characteristics of municipalities owning water utilities that took advantage of incentives provided by the Japanese government to consolidate. We find that economies of scale and government transfers were some of the main factors leading to consolidation of government services. This is expected given the Central Government's efforts to equalize public service levels, and the large cost savings available to municipal level water monopolies.
- water utilities
- First received 6 July 2015.
- Accepted in revised form 30 November 2015.
- © IWA Publishing 2015