Incentives and Privatization in the Brazilian Water and Sanitation Sector: indicator analysis between 2006 to 2020.
Synthetic Differences in Differences; Sanitation; Privatizations
In 2015 Brazil formalized the commitment among the members of the United Nations to universalize access to water and sewage by 2030 and, for that, it will have partial management assistance from the private sector. Through the National Sanitation Information System (SNIS) in the period 2006 to 2020, we will examine the incentives for municipalities to switch to private management. Using Synthetic Differences in Differences estimation, we assess sanitation quality indicators to measure the difference between private and public management. The results indicate a reduction in the average price of water by BRL 0.34 and an increase in the water treatment index by 50.24 points; we did not find a statistically significant change in other indicators.