IDEAS home Printed from https://ideas.repec.org/p/wiw/wiwrsa/ersa11p1416.html
   My bibliography  Save this paper

The new regulation of public infrastructure services in the European Union. Challenges for territorial cohesion

Author

Listed:
  • Judith Clifton
  • Daniel Díaz-Fuentes
  • Marcos Fernández-Gutiérrez
  • Julio Revuelta

Abstract

Public infrastructure services (or Services of General Economic Interest, SGEI) in the European Union have undergone significant reform in the recent period, including privatization, liberalization and deregulation. These reforms, however, have led to concerns about the potential impact of pursuing economic profitability over service quality, affordability, accessibility and universality. Traditionally, because SGEI have been understood as playing a key economic, social and strategic role, they have been subject to specific rules in the general interest: so-called Public Service Obligations (PSO). A key objective of PSO is to ensure equal access to services, independent of the place of residence, income or other factors. PSO are, therefore, a key instrument as regards ensuring equity and territorial cohesion. As such, it constitutes a fundamental concern in European regional policy. Traditionally, the regulation of SGEI has focused on the supply side, as it has been assumed competition in an integrated European market would benefit citizens. Despite this, little research has actually been done on evaluating regulation from the demand side, not to speak of applying a regional focus. The aim of this paper is to evaluate SGEI provision and regulation in the EU from the perspective of citizens as consumers using a regional perspective. We focus on the region (NUTS1) and the urban/rural character of the place of residence as possible determinants of disparities. To do so, a microeconometric analysis of citizens' revealed and stated preferences is performed, focusing on three large European countries (Italy, Spain and the United Kingdom) for four services: electricity, gas, water and telecommunications. First, disparities in spending on the services are analyzed, using National Household Budget Surveys. Next, differences in dissatisfaction with service access and price are analyzed, using the Eurobarometer. Finally, we analyze whether lower consumption of a particular service in a particular region or rural area is related to problems of accessibility, affordability or to other factors. Findings show different regional patterns of services use. Moreover, serious and widespread problems are observed regarding equal access to services such as gas and telecommunications in rural areas, of some concern for the question of territorial cohesion.

Suggested Citation

  • Judith Clifton & Daniel Díaz-Fuentes & Marcos Fernández-Gutiérrez & Julio Revuelta, 2011. "The new regulation of public infrastructure services in the European Union. Challenges for territorial cohesion," ERSA conference papers ersa11p1416, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa11p1416
    as

    Download full text from publisher

    File URL: https://www-sre.wu.ac.at/ersa/ersaconfs/ersa11/e110830aFinal01416.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Raffaele Miniaci & Carlo Scarpa & Paola Valbonesi, 2008. "Distributional Effects of Price Reforms in the Italian Utility Markets," Fiscal Studies, Institute for Fiscal Studies, vol. 29(1), pages 135-163, March.
    2. Fiorio, Carlo V. & Florio, M. & Salini, S. & Ferrari, P.A., 2007. "Consumers' Attitudes on Services of General Interest in the EU: Accessibility, Price and Quality 2000-2004," Privatisation Regulation Corporate Governance Working Papers 12195, Fondazione Eni Enrico Mattei (FEEM).
    3. Steven Van De Walle, 2009. "When Is A Service An Essential Public Service?," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 80(4), pages 521-545, December.
    4. Andreas Faludi, 2006. "From European spatial development to territorial cohesion policy," Regional Studies, Taylor & Francis Journals, vol. 40(6), pages 667-678.
    5. Michael Demoussis & Nicholas Giannakopoulos, 2006. "Facets of the digital divide in Europe: Determination and extent of internet use," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(3), pages 235-246.
    6. John C. Whitehead & Subhrendu K. Pattanayak & George L. Van Houtven & Brett R. Gelso, 2008. "Combining Revealed And Stated Preference Data To Estimate The Nonmarket Value Of Ecological Services: An Assessment Of The State Of The Science," Journal of Economic Surveys, Wiley Blackwell, vol. 22(5), pages 872-908, December.
    7. Kendra Strauss, 2008. "Re-engaging with rationality in economic geography: behavioural approaches and the importance of context in decision-making," Journal of Economic Geography, Oxford University Press, vol. 8(2), pages 137-156, March.
    8. Carlo Vittorio FIORIO & Massimo FLORIO, 2008. "Do you pay a fair price for electricity? Consumers’ satisfaction and utility reform in the EU," Departmental Working Papers 2008-12, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    9. Steven Van de Walle, 2006. "The impact of public service values on services of general interest reform debates," Public Management Review, Taylor & Francis Journals, vol. 8(2), pages 183-205, June.
    10. Carlo Vittorio FIORIO & Massimo FLORIO & Silvia SALINI & Pieralda FERRARI, 2007. "European consumers’ attitudes on services of general interest: accessibility, price and quality," Departmental Working Papers 2007-04, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    11. Judith Clifton & Daniel Díaz‐Fuentes, 2010. "Evaluating Eu Policies On Public Services: A Citizens' Perspective," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 81(2), pages 281-311, June.
    12. Judith Clifton & Francisco Comín & Daniel Díaz Fuentes, 2005. "‘Empowering Europe'S Citizens’?," Public Management Review, Taylor & Francis Journals, vol. 7(3), pages 417-443, September.
    13. Arnold PICOT & Nico GROVE, 2010. "Closing gaps in the information society: providing high-speed broadband access to rural areas," Departmental Working Papers 2010-17, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    14. Fabienne Ilzkovitz & Adriaan Dierx & Nuno Sousa, 2008. "An analysis of the possible causes of product market malfunctioning in the EU: First results for manufacturing and service sectors," European Economy - Economic Papers 2008 - 2015 336, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    15. Monica Giulietti & Catherine Waddams Price & Michael Waterson, 2005. "Consumer Choice and Competition Policy: a Study of UK Energy Markets," Economic Journal, Royal Economic Society, vol. 115(506), pages 949-968, October.
    16. Juan R. Cuadrado-Roura & Antonio Garcia-Tabuenca, 2004. "ICT policies for SMEs and regional disparities. The Spanish case," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 16(1), pages 55-75, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Judith Clifton & Daniel Díaz‐Fuentes & Marcos Fernández‐Gutiérrez & Julio Revuelta, 2011. "Is Market‐Oriented Reform Producing A ‘Two‐Track’ Europe? Evidence From Electricity And Telecommunications," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 82(4), pages 495-513, December.
    2. Clifton, Judith & Díaz-Fuentes, Daniel & Fernández Gutiérrez, Marcos & Revuelta, Julio, 2011. "Bringing Citizens Back In: Renewing Public Service Regulation," MPRA Paper 33051, University Library of Munich, Germany.
    3. Clifton, Judith & Díaz-Fuentes, Daniel & Fernández Gutiérrez, Marcos & Revuelta, Julio, 2009. "Infrastructure regulation: what works, why, and how do we know?," MPRA Paper 33038, University Library of Munich, Germany.
    4. Clifton, Judith & Díaz-Fuentes, Daniel & Fernández-Gutiérrez, Marcos, 2013. "How consumers’ socio-economic background influences satisfaction: Insights for better utility regulation," MPRA Paper 47271, University Library of Munich, Germany.
    5. Marcos Fernández‐Gutiérrez & Oliver James & Sebastian Jilke, 2017. "Competition and switching in public service markets: Can they reduce inequalities?," Regulation & Governance, John Wiley & Sons, vol. 11(1), pages 41-63, March.
    6. Giancarlo MANZI & Pier Alda FERRARI, "undated". "Statistical methods for evaluating satisfaction with public services Abstract: Contrary to private enterprises, public enterprises can be unaware of the impact of their performance when providing serv," CIRIEC Working Papers 1404, CIRIEC - Université de Liège.
    7. Fiorio, Carlo V. & Florio, Massimo & Perucca, Giovanni, 2013. "User satisfaction and the organization of local public transport: Evidence from European cities," Transport Policy, Elsevier, vol. 29(C), pages 209-218.
    8. Fiorio, Carlo V. & Florio, Massimo, 2011. "«Would you say that the price you pay for electricity is fair?» Consumers' satisfaction and utility reforms in the EU15," Energy Economics, Elsevier, vol. 33(2), pages 178-187, March.
    9. Judith Clifton & Daniel Díaz-Fuentes & Marcos Fernández-Gutiérrez, 2014. "The impact of socio-economic background on satisfaction: evidence for policy-makers," Journal of Regulatory Economics, Springer, vol. 46(2), pages 183-206, October.
    10. Ariel Casarin, 2014. "Regulated price reforms and unregulated substitutes: the case of residential piped gas in Argentina," Journal of Regulatory Economics, Springer, vol. 45(1), pages 34-56, February.
    11. Pier Ferrari & Laura Pagani & Carlo Fiorio, 2011. "A Two-Step Approach to Analyze Satisfaction Data," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 104(3), pages 545-554, December.
    12. José M. Alonso & Judith Clifton & Daniel Díaz-Fuentes, 2015. "Did New Public Management Matter? An empirical analysis of the outsourcing and decentralization effects on public sector size," Public Management Review, Taylor & Francis Journals, vol. 17(5), pages 643-660, May.
    13. Simona GRASSI & Riccardo PUGLISI, 2008. "Regulation and consumer satisfaction from public services: an individual fixed effects approach," Departmental Working Papers 2008-21, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    14. Judith CLIFTON & Daniel DÍAZ FUENTES & Marcos FERNÁNDEZ GUTIÉRREZ & Julio REVUELTA, 2010. "Rethinking public service regulation after the crisis," Departmental Working Papers 2010-35, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    15. Manto LAMPROPOULOU, 2018. "State‐Owned Enterprises In Greece: The Evolution Of A Paradigm 1996–2016," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 89(3), pages 491-526, September.
    16. Giuseppe Attanasi & Ylenia Curci & Patrick Llerena & Maria del Pino Ramos-Sosa & Adriana Carolina Pinate & Giulia Urso, 2019. "Looking at Creativity from East to West: Risk Taking and Intrinsic Motivation in Socially and Culturally Diverse Countries," Working Papers of BETA 2019-38, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    17. Ana Gomes & José G. Dias, 2023. "Is there a Common Digital Market in the European Union? Implications for the European Digitalization Strategy," Journal of Common Market Studies, Wiley Blackwell, vol. 61(3), pages 797-814, May.
    18. Mercedes Rodríguez & José Antonio Camacho, 2023. "The importance of agriculture and rural areas for the future in the European Union: An exploration of public opinion," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 69(10), pages 394-403.
    19. Evens Salies & Catherine Waddams Price, 2004. "Charges, Costs and Market Power: the Deregulated UK Electricity Retail Market," The Energy Journal, , vol. 25(3), pages 19-35, July.
    20. P. A. Ferrari & S. Salini, 2008. "Measuring Service Quality: The Opinion of Europeans about Utilities," Working Papers 2008.36, Fondazione Eni Enrico Mattei.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa11p1416. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Gunther Maier (email available below). General contact details of provider: http://www.ersa.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.