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The privatisation of urban water services: theory and empirical evidence in the case of Spain

Author

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  • Ruiz-Villaverde, Alberto

    (Universidad de Granada)

  • González-Gómez, Francisco

    (Universidad de Granada)

  • J. Picazo- Tadeo, Andrés

    (Universidad de Valencia)

Abstract

Following the wave of deregulation and privatisation of public firms that started in Anglo-Saxon economies in the late 1970s, most industrialised countries changed their laws to encourage the contracting out of local services. Accordingly, in 1985 many Spanish municipalities began to privatise their urban water services. However, three decades after the first privatisations took place, and against a backdrop of increasing opposition to new privatisations, several municipalities are now returning to the public provision of these services. In this context, after establishing a theoretical framework for privatisation, this paper goes on to describe the main features of the process of privatisation of urban water services in Spain, as well as recent trends towards remunicipalisation. With no clear empirical evidence as to whether public or private management of urban water services is better, this ongoing debate is set to continue and will be strongly influenced by prevailing ideological trends as well as other environmental factors.

Suggested Citation

  • 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.
    • Handle: RePEc:ris:invreg:0287
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    References listed on IDEAS

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    Cited by:

    1. López-Ruiz, Samara & Tortajada, Cecilia & González-Gómez, Francisco, 2020. "Is the human right to water sufficiently protected in Spain? Affordability and governance concerns," Utilities Policy, Elsevier, vol. 63(C).
    2. Daniel Albalate & Germà Bel & Francisco González-Gómez & José C. Hernández-Gutiérrez & Andrés J. Picazo-Tadeo, 2023. "Remunicipalization of Local Public Services: Policy Drivers and Changing Prices," IREA Working Papers 202319, University of Barcelona, Research Institute of Applied Economics, revised Dec 2023.
    3. Mikail Pehlivan & Nazan Susam, 2022. "Transformation of Water Services: Lessons Learned from Water Privatization in Multiple Countries," Journal of Economy Culture and Society, Istanbul University, Faculty of Economics, vol. 65(65), pages 129-160, June.
    4. Marta Suárez-Varela & María los Ángeles García-Valiñas & Francisco González-Gómez & Andrés J Picazo-Tadeo, 2017. "Ownership and Performance in Water Services Revisited: Does Private Management Really Outperform Public?," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 31(8), pages 2355-2373, June.
    5. 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.

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    More about this item

    Keywords

    Urban water services; privatisation; remunicipalisation; Spain;
    All these keywords.

    JEL classification:

    • H76 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other Expenditure Categories
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities

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