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Legislative reforms and market dynamics in the provision of urban water service by private contract operators in Spain

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  • Albalate, Daniel
  • Bel, Germà
  • González-Gómez, Francisco
  • Picazo-Tadeo, Andrés J.

Abstract

This paper studies the dynamics of concentration in the Spanish market for the provision of urban water service by private contract operators in the 2000–2020 period. The market is highly concentrated. Concentration increased until 2007, at which point it started to decline when Law 30/2007 on Public Sector Contracts and Organic Law 8/2007 on Political Party Financing were passed; before rising again from 2016 onwards. This latter trend results from strategic behaviour by the two leading operators, acquiring smaller companies with a notable presence in some regional markets. Further legislative reforms aimed at safeguarding space for competition are thus proposed.

Suggested Citation

  • Albalate, Daniel & Bel, Germà & González-Gómez, Francisco & Picazo-Tadeo, Andrés J., 2022. "Legislative reforms and market dynamics in the provision of urban water service by private contract operators in Spain," Utilities Policy, Elsevier, vol. 74(C).
    • Handle: RePEc:eee:juipol:v:74:y:2022:i:c:s0957178721001363
    DOI: 10.1016/j.jup.2021.101302
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    References listed on IDEAS

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    1. Andrés J. Picazo-Tadeo & Francisco González-Gómez & Marta Suárez-Varela, 2020. "Electoral opportunism and water pricing with incomplete transfer of control rights," Local Government Studies, Taylor & Francis Journals, vol. 46(6), pages 1015-1038, November.
    2. Lima, Sónia & Brochado, Ana & Marques, Rui Cunha, 2021. "Public-private partnerships in the water sector: A review," Utilities Policy, Elsevier, vol. 69(C).
    3. Daniel Albalate & Germà Bel & Francisco González-Gómez & Andrés J. Picazo-Tadeo, 2017. "Weakening political connections by means of regulatory reform: Evidence from contracting out water services in Spain," Journal of Regulatory Economics, Springer, vol. 52(2), pages 211-235, October.
    4. Germà Bel & Francisco González-Gómez & Andrés J Picazo-Tadeo, 2015. "Does market concentration affect prices in the urban water industry?," Environment and Planning C, , vol. 33(6), pages 1546-1565, December.
    5. Klein, Michael, 1996. "Economic regulation of water companies," Policy Research Working Paper Series 1649, The World Bank.
    6. Narzetti, Daniel Antonio & Marques, Rui Cunha, 2021. "Isomorphic mimicry and the effectiveness of water-sector reforms in Brazil," Utilities Policy, Elsevier, vol. 70(C).
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Daniel Albalate & Germà Bel & Francisco González-Gómez & José C. Hernández-Gutiérrez & Andrés J. Picazo-Tadeo, 2024. "Changing prices after the reform of local public services: remunicipalization versus privatization," Journal of Regulatory Economics, Springer, vol. 65(1), pages 1-26, June.

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    More about this item

    Keywords

    Corporate operations; Legislative reforms; Market concentration; Spain; Urban water service;
    All these keywords.

    JEL classification:

    • D49 - Microeconomics - - Market Structure, Pricing, and Design - - - Other
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • 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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