The Hybrid Model for Water Services Regulation: Mission Impossible?
The two main approaches to economic regulation—regulation by contract and regulation by agency—may both encounter significant challenges in regulating public-private partnerships when institutions are weak. As a result, the hybrid model, a mixture of elements from both systems, is widespread. This paper considers hybrid regulation as a distinct regulatory model. A case study of water services regulation in Manila from 1997 to 2015 suggests that hybrid regulation is both possible and compelling. Yet, while it might help to expedite private-sector involvement initially, fundamental tensions between the two underlying approaches may undermine PPP sustainability if not addressed appropriately at the outset.
|Author Last Names||Jensen, Wu|
|Journal Name||Utilities Policy|
|Year of Publication||2016|
|Keywords||economic regulation, PPP, water supply|