Jong, Roelof de; Nentjes, Andries; Wiersma, Doede - In: Environmental & Resource Economics 16 (2000) 1, pp. 69-79
The paper discusses efficiency issues in the public provision of environmental services, in particular waste water treatment. It is shown that in the face of increasing, respectively decreasing returns to scale the zero profit constraint of a cost minimizing public firm induces underinvestment,...