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The ‘social choice’ of privatising urban water services: A case study of Madrid in Spain

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  • Ruiz-Villaverde, Alberto
  • Picazo-Tadeo, Andrés J.
  • González-Gómez, Francisco

Abstract

In countries where privatisation is permitted by law, policymakers usually provide different reasons of general interest to allow private companies to manage water services. However, these decisions often provoke intense political debate and are at times opposed by citizens. We illustrate how the Analytic Hierarchy Process can be used to introduce a political analysis regarding the management of water services. We analyse the recent decision taken by the Regional Government of Madrid (Spain) to part-privatise the management of water services. Our main result suggests that policymakers should reconsider the importance of citizen participation in the management of water services.

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  • Ruiz-Villaverde, Alberto & Picazo-Tadeo, Andrés J. & González-Gómez, Francisco, 2015. "The ‘social choice’ of privatising urban water services: A case study of Madrid in Spain," Journal of Policy Modeling, Elsevier, vol. 37(4), pages 616-629.
    • Handle: RePEc:eee:jpolmo:v:37:y:2015:i:4:p:616-629
    DOI: 10.1016/j.jpolmod.2015.04.005
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    Cited by:

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    2. Ruiz-Villaverde, Alberto & González-Gómez, Francisco & J. Picazo- Tadeo, Andrés, 2015. "The privatisation of urban water services: theory and empirical evidence in the case of Spain," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 31, pages 157-174.
    3. Alberto Ruiz-Villaverde & Miguel A. García-Rubio, 2017. "Public Participation in European Water Management: from Theory to Practice," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 31(8), pages 2479-2495, June.
    4. Boardman, Anthony E. & Vining, Aidan R. & Weimer, David L., 2016. "The long-run effects of privatization on productivity: Evidence from Canada," Journal of Policy Modeling, Elsevier, vol. 38(6), pages 1001-1017.
    5. M. Isabel Sanchez-Hernandez & Juan José Maldonado-Briegas & Ramón Sanguino & Ascensión Barroso & M. Cristina Barriuso, 2021. "Users’ Perceptions of Local Public Water and Waste Services: A Case Study for Sustainable Development," Energies, MDPI, vol. 14(11), pages 1-17, May.

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    More about this item

    Keywords

    Urban water services; Privatisation; Decision-making; Analytic Hierarchy Process (AHP); C6; H83; L33;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out

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