Expenditures and investments in Brazilian basic sanitation: Impacts on revenue

Abstract

The main objective of the article was to analyze the impact of expenditures and investments by basic sanitation companies on total revenues in municipalities in Brazilian macro-regions. The analyses were carried out between 2007 and 2016. Panel data were estimated from the National Health Information System and the Brazilian Institute of Geography and Statistics. It was found that the increase in revenue is directly linked to a larger scale of production, whose locations with a higher number of services produce greater gains in all Brazilian regions. The effectiveness of gains through the efficiency and effectiveness of equipment and structures was fundamental for the sector. The research showed the fragility of the service systems, generating negative externalities. The collection and treatment of sewage are too far away to achieve universalization. The allocation of resources should be directed to mitigate efficiency losses in the system and increase in scale to meet the goal of universalization of sanitation services.