Advertisement

Introduction

Facing the Challenges of Water Governance: Moving from the Public Versus Private Debate to Other (At Least) Equally Important Governance Issues
  • Simon Porcher
  • Stéphane SaussierEmail author
Chapter
  • 925 Downloads
Part of the Palgrave Studies in Water Governance: Policy and Practice book series (PSWG)

Abstract

Good water management is essential to human development, people’s well-being, social inclusion, and environmental sustainability. The Sustainable Development Goals of the United Nations set forward an ambitious agenda of providing universal access to good quality water supply and sanitation services within a financially constrained environment. However, the various peculiarities of each country regarding water governance makes it difficult to identify and implement the best practices and benchmarks. When it comes to water governance issues, the private versus public management question stays at the core of the public debate, for ideological reasons but also for practical ones; when there is a need for investments the temptation to look for private finance is natural. We argue that it pushes to the background other issues which are at least equally important, such as the proper scale to operate water services, stakeholders’ engagement, or the need for independent regulatory agencies.

Keywords

Water Governance Water Service Operators Increasing Block Tariffs (IBTs) Private Sector Participation Rigid Contracts 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

References

  1. Akhmouch, A., Clavreul, D., & Glas, P. (2018). Introducing the OECD Principles on Water Governance. International Water, 43, 5–12.CrossRefGoogle Scholar
  2. Athias, L., & Saussier, S. (2007). Contractual Flexibility or Rigidity for Public Private Partnerships? Theory and Evidence from Infrastructure Concession Contracts. Revue Economique, 58(3), 565–576.CrossRefGoogle Scholar
  3. Bel, G., González-Gómez, F., & Picazo-Tadeo, A. J. (2015). Does Market Concentration Affect Prices in the Urban Water Industry? Environment and Planning C, 33(6), 1546–1565.CrossRefGoogle Scholar
  4. Bertoméu, S., Camos, D., & Estache, A. (2018). Do Economic Regulatory Agencies Matter to Private-Sector Involvement in Water Utilities in Developing Countries. Utilities Policy, 50, 153–163.CrossRefGoogle Scholar
  5. Beuve, J., de Brux, J., & Saussier, S. (2013). Renégocier pour durer : une analyse empirique des contrats de concessions. Revue d’économie industrielle, 141(1), 117–148.CrossRefGoogle Scholar
  6. Beuve, J., Moszoro, M., & Saussier, S. (2018). Political Contestability and Public Contract Rigidity. Journal of Economics and Management Strategy, Forthcoming.Google Scholar
  7. Bhattacharyya, A., Harris, T. R., Narayanan, R., et al. (1995). Specification and Estimation of the Effect of Ownership on the Economic Efficiency of the Water Utilities. Regional Science and Urban Economics, 25(6), 759–784.CrossRefGoogle Scholar
  8. Boycko, M., Shleifer, A., & Vishny, R. W. (1996). A Theory of Privatization. The Economic Journal, 106, 309–319.CrossRefGoogle Scholar
  9. Chong, E., Saussier, S., & Silverman, B. S. (2015). Water Under the Bridge: Determinants of Franchise Renewal in Water Provision. Journal of Law, Economics and Organization, 31(1), 3–39.CrossRefGoogle Scholar
  10. Clarke, G. R. G., Kosec, K., & Wallsten, S. (2009). Has Private Participation in Water and Sewerage Improved Coverage? Empirical Evidence from Latin America. Journal of International Development, 21(3), 327–361.CrossRefGoogle Scholar
  11. Desrieux, C., Eshien, C., & Saussier, S. (2013). Putting All One’s Eggs in One Basket: Relational Contracts and the Provision of Local Public Services. Journal of Economic Behavior & Organization, 89, 167–186.CrossRefGoogle Scholar
  12. Engel, E., Fischer, R., & Galetovic, A. (2011). Public-Private Partnerships to Revamp U.S. Infrastructure (pp. 1–26). The Hamilton Project—Brookings.Google Scholar
  13. Estache, A., & Kouassi, E. (2002). Sector Organization, Governance, and the Inefficiency of African Water Utilities. Policy Research Working Paper Series 2890. Washington, DC: The World Bank.CrossRefGoogle Scholar
  14. Estache, A., & Rossi, M. (2002). How Different Is the Efficiency of Public and Private Water Companies in Asia? World Bank Economic Review, 16, 139–148.CrossRefGoogle Scholar
  15. Estache, A., & Saussier, S. (2014). Public-Private Partnerships and Efficiency: A Short Assessment. CESifo DICE Report, 12(3), 8–13.Google Scholar
  16. Estache, A. (2006). PPI Partnerships vs. PPI Divorces in LDCs. Review of Industrial Organization, 29(1), 3–26.CrossRefGoogle Scholar
  17. Galiani, S., Gertler, P., & Schargrodsky, E. (2005). Water for Life: The Impact of the Privatization of Water Services on Child Mortality. Journal of Political Economy, 113(1), 83–120.CrossRefGoogle Scholar
  18. Garcia-Sanchez, I. M. (2006). Efficiency Measurement in Spanish Local Government: The Case of Municipal Water Services. Review of Policy Research, 23(2), 355–371.CrossRefGoogle Scholar
  19. García-Valiñas, M. A., González Gómez, F., & Picazo-Tadeo, A. J. (2013). Is the Price of Water for Residential Use Related to Provider Ownership? Empirical Evidence from Spain. Utilities Policy, 24, 59–69.CrossRefGoogle Scholar
  20. Guasch, J. L., Benitez, D., Portabales, I., & Flor, L. (2014). The Renegotiation of PPP Contracts: An Overview of Its Recent Evolution in Latin America. International Transport Forum Discussion Papers 2014/18, OECD Publishing.Google Scholar
  21. Guasch, J.-L. (2004). Granting and Renegotiating Infrastructure Concession: Doing It Right. Mimeo: The World Bank.CrossRefGoogle Scholar
  22. Jensen, M. C., & Meckling, W. H. (1976). Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics, 3(4), 305–360.CrossRefGoogle Scholar
  23. Kirkpatrick, C., Parker, D., & Zhang, Y.-F. (2006). State Versus Private Sector Provision of Water Services in Africa: An Empirical Analysis. The World Bank Economic Review, 20(1), 143–163.CrossRefGoogle Scholar
  24. Klein, B., Crawford, R. G., & Alchian, A. (1978). Vertical Integration, Appropriable Rents, and the Competitive Contracting Process. The Journal of Law and Economics, 21(2), 297–326.CrossRefGoogle Scholar
  25. Laffont, J.-J., & Tirole, J. (1993). A Theory of Incentives in Procurement and Regulation. Cambridge: MIT Press.Google Scholar
  26. Laffont, J.-J. (2000). Etapes vers un Etat moderne : une analyse économique.Google Scholar
  27. Lee, C. (2011). Privatization, Water Access and Affordability: Evidence from Malaysian Household Expenditure Data. Economic Modelling, 28(5), 2121–2128.CrossRefGoogle Scholar
  28. Lyon, T. P., Montgomery, A. W., & Zhao, D. (2018). A Change Would Do You Good: Privatization, Municipalization and Drinking Water Quality. Working Paper.Google Scholar
  29. Marques, R., & De Witte, K. (2011). Is Big Better? On Scale and Scope Economies in the Portuguese Water Sector. Economic Modelling, 28(3), 1009–1016.CrossRefGoogle Scholar
  30. Martínez-Espiñeira, R., García-Valiñas, M. A., & González-Gómez, F. (2009). Does Private Management of Water Supply Services Really Increase Prices? An Empirical Analysis in Spain. Urban Studies, 46(4), 923–945.CrossRefGoogle Scholar
  31. McCubbins, M. D., & Schwartz, T. (1984). Congressional Oversight Overlooked: Police Patrols Versus Fire Alarms. American Journal of Political Science, 28(1), 165–179.CrossRefGoogle Scholar
  32. Mizutani, F., & Urakami, T. (2001). Identifying Network Density and Scale Economies for Japanese Water Supply Organizations. Papers in Regional Science, 80(2), 211–230.CrossRefGoogle Scholar
  33. Moszoro, M. W., & Spiller, P. T. (2012). Third-Party Opportunism and the Nature of Public Contracts. NBER w18636.Google Scholar
  34. Moszoro, M. W., Spiller, P. T., & Stolorz, S. (2016). Rigidity of Public Contracts. Journal of Empirical Legal Studies, 13(3), 396–427.CrossRefGoogle Scholar
  35. National Audit Office. (2001). Managing the Relationship to Secure a Successful Partnership in PFI Contracts. Report by the Controller and Auditor General.Google Scholar
  36. Nauges, C., & Whittington, D. (2017). Evaluating the Performance of Alternative Municipal Water Tariff Designs: Quantifying the Tradeoffs Between Equity, Economic Efficiency, and Cost Recovery. World Development, 91, 125–143.CrossRefGoogle Scholar
  37. OECD. (2012). Strategic Transport Infrastructure Needs to 2030. OECD Publishing. Retrieved from  https://doi.org/10.1787/9789264114425-en.
  38. OECD. (2015a). Principles on Water Governance. Retrieved from http://www.oecd.org/governance/regional-policy/OECD-Principles-on-Water-Governance.pdf.
  39. OECD. (2015b). Stakeholder’s Engagement for Inclusive Water Governance. Retrieved from https://read.oecd-ilibrary.org/governance/stakeholder-engagement-for-inclusive-water-governance_9789264231122-en.
  40. Porcher, S. (2014). Efficiency and Equity in Two-Part Tariffs: The Case of Residential Water Rates. Applied Economics, 46(5), 539–555.CrossRefGoogle Scholar
  41. Porcher, S. (2017). The ‘Hidden Costs’ of Water Provision: New Evidence from the Relationship Between Contracting-Out and Price in French Water Public Services. Utilities Policy, 48, 166–175.CrossRefGoogle Scholar
  42. Ruester, S., & Zschille, M. (2010). The Impact of Governance Structure on Firm Performance: An Application to the German Water Distribution Sector. Utilities Policy, 18(3), 154–162.CrossRefGoogle Scholar
  43. Saal, D. S., & Parker, D. (2000). The Impact of Privatization and Regulation on the Water and Sewerage Industry in England and Wales: A Translog Cost Function Model. Managerial and Decision Economics, 21(6), 253–268.CrossRefGoogle Scholar
  44. Saussier, S., & de Brux, J. (2018). The Economics of Public-Private Partnerships. Springer International Publishing.Google Scholar
  45. Shih, J.-S., Harrington, W., Pizer, W. A., & Gillingham, K. (2004). Economies of Scale and Technical Efficiency in Community Water Systems. Resources for the Future, Discussion Paper 04-15.Google Scholar
  46. Smets, H. (2004). La solidarité de l’eau potable: aspects économiques. Paris: Report, Académie de l’eau.Google Scholar
  47. Smith, A. (1776). An Inquiry into the Nature and Causes of the Wealth of Nations. London: Strahan and Cadell.CrossRefGoogle Scholar
  48. Spiller, P. T. (2008). An Institutional Theory of Public Contracts: Regulatory Implications. NBER Working Paper (14152).Google Scholar
  49. Stiel, C. (2017, December). Modern Public Enterprises: Organisational Innovation and Productivity. Working Paper 1713, DIW Berlin.Google Scholar
  50. Whittington, D., Nauges, C., Fuente, D., & Wu, X. (2015). A Diagnostic Tool for Estimating the Incidence of Subsidies Delivered by Water Utilities in Low-and Medium-Income Countries, with Illustrative Simulations. Utilities Policy, 34, 70–81.CrossRefGoogle Scholar
  51. Williamson, O. E. (1985). The Economic Institutions of Capitalism. The Free Press.Google Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

  1. 1.IAE Paris - Sorbonne Business SchoolUniversity of Paris 1 Panthéon-SorbonneParisFrance

Personalised recommendations