Assessing the impact of water service regulatory reforms in Italy: a multidimensional approach

In 1994 the regulatory framework of water services in Italy was radically modified, by transforming a traditional ublicly operated system, which relied heavily for investments on fiscal budgets, into a system made up of self- ustaining corporate enterprises regulated at arm’s length. After 19 years, the time has come to make an assessment f what has been achieved. This paper develops an original methodology, inspired by the concept of water sustain- bility, which tries to integrate economic, environmental and financial aspects within a unique framework. Our nalysis discloses both allocative as well as distributive impacts of the reform, showing that it has been possible o generate some value for money while shifting the economic burden from taxpayers to service customers. How- ver, improvements have been too slight and many signs are showing that it will be rather problematic to speed them up without undertaking a substantial restyling.