The “social choice” of privatising urban water services: a case study of Madrid in Spain
In 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.
|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
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.:
- 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.
- Oliver Hart & Andrei Shleifer & Robert W. Vishny, 1997. "The Proper Scope of Government: Theory and an Application to Prisons," The Quarterly Journal of Economics, Oxford University Press, vol. 112(4), pages 1127-1161.
- 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.
- Germà Bel & Xavier Fageda, 2006.
"Factors explaining local privatization: A meta-regression analysis,"
CREAP2006-03, Xarxa de Referència en Economia Aplicada (XREAP), revised Oct 2006.
- Germà Bel & Xavier Fageda, 2009. "Factors explaining local privatization: a meta-regression analysis," Public Choice, Springer, vol. 139(1), pages 105-119, April.
- Tauchmann, Harald & Clausen, Hartmut & Oelmann, Mark, 2009. "Do organizational forms matter? Innovation and liberalization in the German wastewater sector," Journal of Policy Modeling, Elsevier, vol. 31(6), pages 863-876, November.
- Yoram Wind & Thomas L. Saaty, 1980. "Marketing Applications of the Analytic Hierarchy Process," Management Science, INFORMS, vol. 26(7), pages 641-658, July.
- 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.
- Patrick Bolton & Mathias Dewatripont, 2005.
MIT Press Books,
The MIT Press,
edition 1, volume 1, number 0262025760.
- 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.
- Lai, Vincent S. & Wong, Bo K. & Cheung, Waiman, 2002. "Group decision making in a multiple criteria environment: A case using the AHP in software selection," European Journal of Operational Research, Elsevier, vol. 137(1), pages 134-144, February.
- Gomez-Limon, J.A. & Atance, I., 2004. "Identification of public objectives related to agricultural sector support," Journal of Policy Modeling, Elsevier, vol. 26(8-9), pages 1045-1071, December.
- 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.
- Schmitz, Patrick W., 2000. "Partial Privatization and Incomplete Contracts: The Proper Scope of Government Reconsidered," MPRA Paper 13447, University Library of Munich, Germany.
- 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.
- Germà 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.
- Bel Germà & Fageda Xavier & E. Mildred, 2014. "Is private production of public services cheaper than public production? A meta-regression analysis of solid waste and water services," Public administration issues, Higher School of Economics, issue 3, pages 103-140.
- Nuno F. da Cruz & Rui Cunha Marques, 2012. "Mixed companies and local governance: no man can serve two masters," LSE Research Online Documents on Economics 59778, London School of Economics and Political Science, LSE Library.
- 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.
- Brunner, Norbert & Lele, Ashwini & Starkl, Markus & Grassini, Laura, 2010. "Water sector reform policy of India: Experiences from case studies in Maharashtra," Journal of Policy Modeling, Elsevier, vol. 32(4), pages 544-561, July.
- Alberto Ruiz-Villaverde & Francisco González-Gómez & Andrés J. Picazo-Tadeo, 2013. "Public choice of urban water service management: a multi-criteria approach," International Journal of Water Resources Development, Taylor & Francis Journals, vol. 29(3), pages 385-399, September.
- 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.
- 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.
- 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).
- Abbott, Malcolm & Cohen, Bruce, 2009. "Productivity and efficiency in the water industry," Utilities Policy, Elsevier, vol. 17(3-4), pages 233-244, September.
- 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.
- 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.
- García-Valiñas, María de los Ángeles & González-Gómez, Francisco & Picazo-Tadeo, Andrés J., 2013. "Is the price of water for residential use related to provider ownership? Empirical evidence from Spain," Utilities Policy, Elsevier, vol. 24(C), pages 59-69.
- Stefan Hajkowicz & Kerry Collins, 2007. "A Review of Multiple Criteria Analysis for Water Resource Planning and Management," Water Resources Management- An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 21(9), pages 1553-1566, September.
- 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.
- José A. Gómez-Limón & Ignacio Atance, 2004. "Identification of Public Objectives Related to Agricultural Sector Support," Economic Working Papers at Centro de Estudios Andaluces E2004/57, Centro de Estudios Andaluces.
- 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.
- 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.
- Martin, Wade E. & Shields, Deborah J. & Tolwinski, Boleslaw & Kent, Brian, 1996. "An application of social choice theory to U.S.D.A. forest service decision making," Journal of Policy Modeling, Elsevier, vol. 18(6), pages 603-621, December.
When requesting a correction, please mention this item's handle: RePEc:eec:wpaper:1322. See general information about how to correct material in RePEc.
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.