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Retaking Control of Local Public Services A Step-by-Step Strategy

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Listed:
  • Alexandre Mayol
  • Stéphane Saussier

Abstract

In this paper, we studied the influence of contract renewals on water prices in France. When studying French water contracts in force between 2008 and 2018, we found that contract renewals have little influence on the prices paid by consumers. However, at contract renewal times, the share of the price that goes to the firms decreases. This price decrease is compensated by an increase in the share of the price that is retained by the municipalities. We interpret this result as a willingness by municipalities to retake control of water services. We show that the higher the municipalities’ shares are, the higher the probability of switching to direct public management at contract renewal times. This suggests a step-by-step strategy, with local authorities first increasing their responsibilities in providing water services (i.e., increasing their price shares) before switching to direct public management.

Suggested Citation

  • Alexandre Mayol & Stéphane Saussier, 2020. "Retaking Control of Local Public Services A Step-by-Step Strategy," Working Papers of BETA 2020-43, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    • Handle: RePEc:ulp:sbbeta:2020-43
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Public-private partnerships; contract renewals; private management; water prices.;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • 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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