Public choice of urban water service management: a multi-criteria approach

Abstract

Local policy makers in developed countries have to make decisions in increasingly complex scenarios. Consequently, they should use all the tools available when deciding which management option is the most suitable for urban water service, given how important that service is and the variety of criteria involved in making such a decision. This article employs ‘analytic hierarchy process’ techniques to perform an ex post analysis of the decision to transfer the management of the urban water service in Granada (in southern Spain) to a public-private partnership. The main conclusion is that the decision was rational, in that it was the best possible alternative considering the hierarchy of preferences at the time. Furthermore, confronting the serious financial difficulties faced by the local government took clear precedence over other aspects when the decision was taken.

Keywords:

• public choice
• local policymakers
• integrated urban water management
• privatization

Acknowledgments

The comments and suggestions from the referees are gratefully acknowledged. The authors also acknowledge financial support from the Junta de Andalucía (Project P11-SEJ-7039) and the Ministry of Economy and Competitiveness (Projects ECO2009-08824/ECON and ECO2012-32189).