Privatisation and Pricing in Water Supply and Treatment: What Impact do New Management Forms (such as Public-Private Partnerships) have on Water Prices, Policy Outputs and Outcomes?

Abstract

The privatization of water supply and wastewater treatment has often been propounded as a viable means for improving the quality of services and lowering prices. Indeed, some studies indicate that water quality has increased with privatization. However, privatization has not consistently led to the intended results in terms of lowering water prices and increasing quality. Indeed, some studies argue that privatization reforms lead to increased prices and lack of quality improvements. On the one hand, there may be many reasons for price increases, such as costs that were unaccounted for or covered via taxation, the need for investment, inflation or an increase in quality standards etc. On the other hand, the relationship between increasing prices and a purported lack of quality improvement remains an open question. A criticism of privatization reforms is the emphasis on economic performance and the subsequent neglect of other interests, such as social and environmental concerns. Accordingly, relating the impact of privatization reforms to the quality and price of water supply and treatment provides fertile grounds for investigation. This panel thus invites scholars to present their current research on the impact of new management forms such as public-private partnerships (as well as other forms involving private actors) on water supply and wastewater treatment services in terms of pricing, quality, access, and other policy outputs and outcomes.

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