The “social choice” of privatising urban water services: a case study of Madrid in Spain
AbstractIn countries where privatisation is permitted by law, policymakers usually give different reasons of general interest to allow private companies to manage water services. However, these kinds of decisions often provoke intense political debate and are at times opposed by citizens. In this paper, we illustrate how Analytic Hierarchy Process (AHP) techniques can be used to analyse the rationality of complex decisions regarding the management of water services. As a case study, we analyse the recent decision taken by the Regional Government of Madrid (Spain) to part-privatise the management of water services by introducing a private partner. In doing so, we use information from a questionnaire completed by a panel of five experts in water management, including both scholars and professionals. The results raise doubts about the rationality of the decision to privatise water services in Madrid. Rather than social interest, other reasons may be behind the decision, such as satisfying private interests whilst continuing to take advantage of maintaining public institution status.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Department of Applied Economics II, Universidad de Valencia in its series Working Papers with number 1322.
Length: 28 pages
Date of creation: Nov 2013
Date of revision:
Contact details of provider:
Postal: Edifici Departamental Oriental, Campus dels Tarongers, Avda. dels Tarongers, S/N (4P15), 46022 - València
Phone: 963 82 83 49
Fax: 963 82 83 54
Web page: http://www.estructuraeconomica.es
More information through EDIRC
Find related papers by 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-11-16 (All new papers)
- NEP-NPS-2013-11-16 (Nonprofit & Public Sector)
- NEP-URE-2013-11-16 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Eckel, Catherine C & Vining, Aidan R, 1985. "Elements of a Theory of Mixed Enterprise," Scottish Journal of Political Economy, Scottish Economic Society, vol. 32(1), pages 82-94, February.
- Oliver Hart & Andrei Shleifer & Robert Vishny, 1996.
"The Proper Scope of Government: Theory and an Application to Prisons,"
Harvard Institute of Economic Research Working Papers
1778, Harvard - Institute of Economic Research.
- Hart, Oliver & Shleifer, Andrei & Vishny, Robert W, 1997. "The Proper Scope of Government: Theory and an Application to Prisons," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1127-61, November.
- Oliver Hart & Andrei Shleifer & Robert W. Vishny, 1996. "The Proper Scope of Government: Theory and an Application to Prisons," NBER Working Papers 5744, National Bureau of Economic Research, Inc.
- Andres Picazo-Tadeo & Francisco Saez-Fernandez & Francisco Gonzalez-Gomez, 2009. "The role of environmental factors in water utilities' technical efficiency. Empirical evidence from Spanish companies," Applied Economics, Taylor & Francis Journals, vol. 41(5), pages 615-628.
- Forman, Ernest & Peniwati, Kirti, 1998. "Aggregating individual judgments and priorities with the analytic hierarchy process," European Journal of Operational Research, Elsevier, vol. 108(1), pages 165-169, July.
- Alberto Ruiz-Villaverde & Francisco Gónzalez-Gómez, 2011. "The public choice of urban water service management: a multi-criteria approach," Working Papers 1101, Department of Applied Economics II, Universidad de Valencia.
- Angel de la Fuente, 2012. "¿Qué reformas necesita el sistema de financiación regional?," UFAE and IAE Working Papers 900.12, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Schmitz, Patrick W., 2000.
"Partial Privatization and Incomplete Contracts: The Proper Scope of Government Reconsidered,"
13447, University Library of Munich, Germany.
- Patrick W. Schmitz, 2000. "Partial Privatization and Incomplete Contracts: The Proper Scope of Government Reconsidered," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 57(4), pages 394-411, August.
- Boardman, Anthony E & Vining, Aidan R, 1989. "Ownership and Performance in Competitive Environments: A Comparison of the Performance of Private, Mixed, and State-Owned Enterprises," Journal of Law and Economics, University of Chicago Press, vol. 32(1), pages 1-33, April.
- Francisco González Gómez & Miguel Angel García Rubio, 2008. "Efficiency in the management of urban water services. What have we learned after four decades of research?," Hacienda Pública Española, IEF, vol. 185(2), pages 39-67, July.
- Germ� Bel & Xavier Fageda & Mildred E. Warner, 2010.
"Is private production of public services cheaper than public production? A meta-regression analysis of solid waste and water services,"
Journal of Policy Analysis and Management,
John Wiley & Sons, Ltd., vol. 29(3), pages 553-577.
- Germà Bel & Xavier Fageda & Mildred E. Warner, 2009. "Is Private Production of Public Services Cheaper than Public Production? A meta-regression analysis of solid waste and water services," IREA Working Papers 200923, University of Barcelona, Research Institute of Applied Economics, revised Oct 2009.
- Abbott, Malcolm & Cohen, Bruce, 2009. "Productivity and efficiency in the water industry," Utilities Policy, Elsevier, vol. 17(3-4), pages 233-244, September.
- Patrick Bolton & Mathias Dewatripont, 2005.
MIT Press Books,
The MIT Press,
edition 1, volume 1, number 0262025760, December.
- Carvalho, Pedro & Marques, Rui Cunha & Berg, Sanford, 2011.
"A meta-regression analysis of benchmarking studies on water utilities market structure,"
32894, University Library of Munich, Germany.
- Carvalho, Pedro & Marques, Rui Cunha & Berg, Sanford, 2012. "A meta-regression analysis of benchmarking studies on water utilities market structure," Utilities Policy, Elsevier, vol. 21(C), pages 40-49.
- Andrés Picazo-Tadeo & Francisco González-Gómez & Jorge Wanden-Berghe & Alberto Ruiz-Villaverde, 2012. "Do ideological and political motives really matter in the public choice of local services management? Evidence from urban water services in Spain," Public Choice, Springer, vol. 151(1), pages 215-228, April.
- Ortega de Miguel, Enrique & Sanz Mulas, Andres, 2007. "A public sector multinational company: The case of Canal de Isabel II," Utilities Policy, Elsevier, vol. 15(2), pages 143-150, June.
- P M McGuirk, 2001. "Situating communicative planning theory: context, power, and knowledge," Environment and Planning A, Pion Ltd, London, vol. 33(2), pages 195-217, February.
- Alessandro MARRA, 2007. "Internal Regulation By Mixed Enterprises: The Case Of The Italian Water Sector," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 78(2), pages 245-275, 06.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Silviano Esteve).
If references are entirely missing, you can add them using this form.