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Contract renegotiation by an Italian wastewater utility: Action research to promote effective tariff revision


  • Guerrini, A.
  • Romano, G.


This article focuses on the process of contract renegotiation by an Italian wastewater utility, commenced with the goal of tariff revision. The main aim of this paper is to identify the conditions that lead to contract renegotiation. It also develops new tools and operations that can facilitate this process. We utilized the action research method that involves organizations in changing situations supported by professional researchers who assume the role of change agents. The study provides some interesting insights on contract management and renegotiation, and highlights conditions that lead to the failure of contract-based regulation.

Suggested Citation

  • Guerrini, A. & Romano, G., 2017. "Contract renegotiation by an Italian wastewater utility: Action research to promote effective tariff revision," Utilities Policy, Elsevier, vol. 48(C), pages 176-183.
  • Handle: RePEc:eee:juipol:v:48:y:2017:i:c:p:176-183
    DOI: 10.1016/j.jup.2017.08.004

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    References listed on IDEAS

    1. Philippe Gagnepain & Marc Ivaldi & David Martimort, 2013. "The Cost of Contract Renegotiation: Evidence from the Local Public Sector," American Economic Review, American Economic Association, vol. 103(6), pages 2352-2383, October.
    2. Janice A. Beecher, 2013. "What matters to performance? Structural and institutional dimensions of water utility governance," International Review of Applied Economics, Taylor & Francis Journals, vol. 27(2), pages 150-173, March.
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    5. David E. M. Sappington & Joseph E. Stiglitz, 1987. "Privatization, information and incentives," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 6(4), pages 567-585.
    6. Romano, Giulia & Guerrini, Andrea & Campedelli, Bettina, 2015. "The new Italian water tariff method: A launching point for novel infrastructures or a backwards step?," Utilities Policy, Elsevier, vol. 34(C), pages 45-53.
    7. Grossman, Sanford J & Hart, Oliver D, 1986. "The Costs and Benefits of Ownership: A Theory of Vertical and Lateral Integration," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 691-719, August.
    8. Scott E. Masten & Stéphane Saussier, 2000. "Econometrics of Contracts : an Assessment of Developments in the Empirical Literature on Contracting," Revue d'Économie Industrielle, Programme National Persée, vol. 92(1), pages 215-236.
    9. Michael A. Crew & David Parker (ed.), 2006. "International Handbook on Economic Regulation," Books, Edward Elgar Publishing, number 3330.
    10. Philippe Marin, 2009. "Public-Private Partnerships for Urban Water Utilities : A Review of Experiences in Developing Countries," World Bank Publications, The World Bank, number 2703, December.
    11. Antonio, Massarutto, 2007. "Liberalization and private sector involvement in the water industry: a review of the economic literature," MPRA Paper 5864, University Library of Munich, Germany.
    12. J. Luis Guasch, 2004. "Granting and Renegotiating Infrastructure Concessions : Doing it Right," World Bank Publications, The World Bank, number 15024, December.
    13. Guerrini, Andrea & Romano, Giulia & Mancuso, Fabrizio & Carosi, Laura, 2016. "Identifying the performance drivers of wastewater treatment plants through conditional order-m efficiency analysis," Utilities Policy, Elsevier, vol. 42(C), pages 20-31.
    14. Guerrini, Andrea & Romano, Giulia, 2013. "The process of tariff setting in an unstable legal framework: An Italian case study," Utilities Policy, Elsevier, vol. 24(C), pages 78-85.
    15. Romano, Giulia & Molinos-Senante, María & Guerrini, Andrea, 2017. "Water utility efficiency assessment in Italy by accounting for service quality: An empirical investigation," Utilities Policy, Elsevier, vol. 45(C), pages 97-108.
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    Cited by:

    1. Guerrini, Andrea & Molinos-Senante, María & Romano, Giulia, 2018. "Italian regulatory reform and water utility performance: An impact analysis," Utilities Policy, Elsevier, vol. 52(C), pages 95-102.
    2. Yanhua Du & Jun Fang & Yongjian Ke & Simon P Philbin & Jingxiao Zhang, 2019. "Developing a Revenue Sharing Method for an Operational Transfer-Operate-Transfer Project," Sustainability, MDPI, Open Access Journal, vol. 11(22), pages 1-19, November.


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