Showing papers by "Germà Bel published in 2015"

Inter-municipal cooperation and costs: expectations and evidence

Abstract: Austerity and fiscal crisis make the search for cost-saving reforms in local government more critical While cost savings from privatization have frequently proven ephemeral, inter-municipal cooperation has been a relatively understudied reform We analyse the literature on cost savings under cooperation and find that savings are dependent on (1) the cost structure of public services, particularly those related to scale and density economies and externalities, (2) the structure of local government (size, metropolitan location, powers granted by the nation or regional state), and (3) the governance framework at the local/regional level where cooperation varies from informal to formal European studies give more emphasis to cost savings, while US studies focus on coordination concerns arising from the higher degree of devolution in the US local government system

The determinants of contractual choice for private involvement in infrastructure projects

Abstract: Numerous studies have examined the determinants of private participation in infrastructure projects. We depart from this simple public/private dichotomy by empirically examining a rich set of contractual arrangements. Infrastructure characteristics, particularly those that reflect ‘stand alone’ versus network characteristics, are key factors influencing the extent of private participation. Fiscal variables as well as basic controls, such as population and locality of government, increase the degree of private participation. A greater tax burden reduces private participation.

Risk Mitigation and Sharing in Motorway PPPs: A Comparative Policy Analysis of Alternative Approaches

Abstract: The detailed contracts between private parties and public sector project sponsors that provide for the construction and operation of transportation infrastructure are often referred to as public–private partnerships (PPPs). Risk-mitigation and risk-sharing arrangements are critical to the long-term success or failure of transportation PPPs. This article examines the distribution of the key risks inherent in a PPP across public sector and private sector partners in road infrastructure PPPs. It draws lessons from the use of alternative risk-mitigation mechanisms across several countries, focusing on how aspects of PPP concession contracts allocate risks on both demand and cost sides of an infrastructure facility.

The environmental effects of changing speed limits: A quantile regression approach

Abstract: Two speed management policies were implemented in the metropolitan area of Barcelona aimed at reducing air pollution concentration levels. In 2008, the maximum speed limit was reduced to 80 km/h and, in 2009, a variable speed system was introduced on some metropolitan motorways. This paper evaluates whether such policies have been successful in promoting cleaner air, not only in terms of average pollutant levels but also during high and low pollution episodes. To do so, we use a quantile regression approach for fixed effect panel data, which allows us analyzing different scenarios (beyond the average levels). We find that the variable speed system improves air quality with regard to the two pollutants considered here, being most effective when nitrogen oxide levels are not too low and when particulate matter concentrations are below extremely high levels. However, reducing the maximum speed limit from 120/100 km/h to 80 km/h has no effect – or even a slightly increasing effect – on the two pollutants, depending on the pollution scenario.

Does market concentration affect prices in the urban water industry

Abstract: This paper analyzes the relationship between market concentration in the private segment of the water industry and water prices with a sample of municipalities located in the Southern Spanish region of Andalusia. In doing so, several Heckman sample selection models are estimated with the main finding being that market concentration increases the price of water for residential use charged by private companies. The main policy recommendation is that urban water service privatization must be accompanied by the appropriate regulatory and institutional frameworks to promote competition among businesses and monitor water pricing.

Tropezando dos veces con la misma piedra: quiebra de autopistas de peaje y costes para contribuyentes y usuarios

Abstract: Este trabajo analiza la distribucion de los riesgos en los contratos de colaboracion publico-privada en el sector de las autopistas de peaje y cuales han sido las garantias otorgadas a lo largo del tiempo. Aunque se observa una mejor identificacion y distribucion de algunos riesgos –progreso tecnologico y demanda–, y un cambio en la asignacion de garantias financieras, existen aun numerosos aspectos que dificultan el devenir de la industria. El declive general del trafico aforado en todas las autopistas de peaje como consecuencia de la crisis, la construccion de vias alternativas y los costosos procesos expropiatorios de distintas concesionarias han generado importantes perdidas en las nuevas concesiones, hasta el momento parcialmente sufragadas mediante recursos publicos. El debate sobre la solucion a la crisis del sector sigue abierto, incluyendo un probable proceso de nacionalizacion.

La experiencia internacional en alta velocidad ferroviaria

Abstract: El presente informe muestra que la alta velocidad es una tecnologia de transporte con presencia internacional pero esta enormemente concentrada en Europa occidental y Asia oriental, aunque existen importantes diferencias en cuanto a dotacion. Espana destaca por su liderazgo en dotacion de infraestructura una vez corregida por poblacion, lo que contrasta con el escaso uso de la misma, muy por debajo del resto de redes de Alta velocidad (AV).

Evaluation of the Impact of Bus Rapid Transit on Air Pollution

Abstract: Mexico City’s bus rapid transit (BRT) network, Metrobus, was introduced in an attempt to reduce congestion, increase city transport efficiency and cut air polluting emissions. In June 2005, the first BRT line in the metropolitan area began service. We use differences-in-differences and quantile regression techniques in undertaking the first quantitative policy impact assessment of the BRT system on air polluting emissions. The air pollutants considered are carbon monoxide (CO), nitrogen oxides (NOX), particulate matter of less than 2.5 µm (PM2.5), particulate matter of less than 10 µm (PM10), and sulfur dioxide (SO2). The ex-post analysis uses real field data from air quality monitoring stations for periods before and after BRT implementation. Results show that BRT constitutes an effective environmental policy, reducing emissions of CO, NOX, PM2.5 and PM10.

Political connections, corruption, and privatization of public services: Evidence from contracting out water services in Spain

Abstract: Political corruption is a type of market failure. One area of public policy where corruption is relatively common is the contracting out of public services. Private firms can improve their chances of obtaining contracts by bribing politicians or public servants and funding political parties. In the same vein, firms can gain access to policy makers by hiring influential former politicians –a practice commonly referred to as revolving-doors. In Spain, a number of corruption cases, involving all the major political parties, are presently under judicial investigation. Some of these cases involve water contracts. Also, there is evidence showing that private firms have been funding political parties as well as hiring former politicians for top positions. In this paper, we use information from 892 privatizations of water services in Spanish municipalities between 1984 and 2014 and logistic multinomial regression techniques to study the association between specific firms securing contracts and the political parties ruling the municipalities. We find evidence of a systematic association between the Popular Party (Partido Popular or PP) and the firm, Aqualia, part of the large Spanish holding company, Fomento de Construcciones y Contratas (FCC), which is known to have funded the PP. Furthermore, former PP politicians have been appointed to top positions in the FCC board of directors.

Factors Explaining Inter-municipal Cooperation in Service Delivery: A Meta-Regression Analysis

Abstract: Inter-municipal cooperation is an important public service delivery reform, whose drivers move beyond simple concerns with costs and economic efficiency, to policy issues related to governance structure and spatial context. We conduct a meta-regression analysis based on the existing multivariate empirical literature to explore what factors explain divergence in results in the existing empirical studies. We find strong evidence that fiscal constraints, spatial, and organizational factors are significant drivers of cooperation. Our meta regressions do not yield results to explain divergence in results on community wealth, economies of scale or racial homogeneity. More studies on these factors are needed to understand how these factors might affect cooperation. Future theoretical and empirical research should give more attention to spatial and organizational factors to develop a better understanding of factors driving cooperation and how they differ across local government structures and regions.

Certificate Oversupply in the European Union Emission Trading System and its Impact on Technological Change

Abstract: We examine the number of patent applications for climate change mitigation technologies (CCMT) filed at the European Patent Office and seek to relate it to the oversupply of emission allowances under the European Union Emission Trading System (EU ETS). We use a panel count data approach to show that firms covered by the policy take the oversupply into account when determining their level of innovative activity. We also indirectly demonstrate that the “weak” version of the Porter hypothesis holds for the EU ETS, given the sizable oversupply of allowances in the market. Our results suggest that in order to set the European economy firmly on the low-carbon technology pathway, and to ensure that the ambitious EU climate targets are met, serious policy changes must be undertaken.

“Strong versus Weak Vertical Integration: Contractual Choice and PPPs in the United States”

Abstract: Public-Private-Partnerships are long-term, relational contracts between a public-sector sponsor and a private partner to deliver infrastructure projects across a range of economic sectors. Efficiency gains may derive from risk transfer and bundling different tasks within a single contract. We study the factors explaining the scope of bundling. We focus on the choice between weak vertical integration, which includes operational tasks alone or construction tasks alone, versus strong vertical integration, which involves the combination of operational and construction tasks. We utilize a new data set that includes 553 PPPs concluded in the U.S. between 1985 and 2013.