A platform for research: civil engineering, architecture and urbanism
A platform for research: civil engineering, architecture and urbanism
Privatizing infrastructure options for municipal systems
Privatization, which operates successfully in France and Britain, offers municipalities a way to harness private‐sector resources and incentives to improve water supply systems.
Municipal water supply systems face little competition and generally cannot go bankrupt, so they lack incentives to operate efficiently. Private systems also face problems: rate regulation removes incentives to innovate, and because private systems pay taxes, they are at a competitive disadvantage. To “level the playing field” in the United States, publicly owned water‐supply companies could be transformed into stand‐alone, government‐owned enterprises subject to the same tax and regulatory policies as private water companies. Both this transitory phase and full privatization would expand a municipality's tax base, encourage full‐cost pricing, and lead to less reliance on government financing to upgrade facilities and meet drinking water regulations.
Privatizing infrastructure options for municipal systems
Privatization, which operates successfully in France and Britain, offers municipalities a way to harness private‐sector resources and incentives to improve water supply systems.
Municipal water supply systems face little competition and generally cannot go bankrupt, so they lack incentives to operate efficiently. Private systems also face problems: rate regulation removes incentives to innovate, and because private systems pay taxes, they are at a competitive disadvantage. To “level the playing field” in the United States, publicly owned water‐supply companies could be transformed into stand‐alone, government‐owned enterprises subject to the same tax and regulatory policies as private water companies. Both this transitory phase and full privatization would expand a municipality's tax base, encourage full‐cost pricing, and lead to less reliance on government financing to upgrade facilities and meet drinking water regulations.
Privatizing infrastructure options for municipal systems
Haarmeyer, David (author)
Journal ‐ American Water Works Association ; 86 ; 42-55
1994-03-01
14 pages
Article (Journal)
Electronic Resource
English
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