EconPapers    
Economics at your fingertips  
 

The ‘hidden costs’ of water provision: New evidence from the relationship between contracting-out and price in French water public services

Simon Porcher ()

Post-Print from HAL

Abstract: In France, the management of public services such as water or sanitation can be done by the municipal council or contracted out to a private operator. This paper quantifies the impact of the choice of contracting out the management of water public services on price. It uses a unique dataset of utilities with unusual detailed financial indicators, such as debt of the water public service. We find evidence that private management is associated with higher prices on average ceteris paribus but that this difference disappears when we account for the 'hidden costs' of water, i.e. the price taking into consideration debt refunding of the public service which could increase the price in the following years. Indeed, private management is characterized by higher tariffs but lower debt level so that the price ensure the full-costs recovery while under public management, prices are set at a lower level than under private management but with a higher debt of the public service.

Keywords: Public-private partnerships; water; contracting out; debt (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-reg
Date: 2017-10
Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-02002309
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Published in Utilities Policy, Elsevier, 2017, 48, pp.166-175

Downloads: (external link)
https://hal.archives-ouvertes.fr/hal-02002309/document (application/pdf)

Related works:
Journal Article: The ‘hidden costs’ of water provision: New evidence from the relationship between contracting-out and price in French water public services (2017) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02002309

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().

 
Page updated 2019-11-30
Handle: RePEc:hal:journl:hal-02002309