Original
Does Political Decoupling Through Fair Market Privatization Improve Managerial and Political Outcomes? Insights From Water Utility Sales
Abstract
ABSTRACT Many U.S. municipalities face environmental service delivery challenges, including aging infrastructure and rising debt. In response, several states have adopted Fair Market Value (FMV) legislation, which aims to incentivize private firms to acquire and invest in municipal utilities—particularly in the water sector. However, the impacts of FMV privatization remain understudied. Guided by political decoupling theory, this study hypothesizes that FMV privatization improves drinking water utility management and local incumbent electoral outcomes. Using a difference‐in‐differences design, we analyze fifteen Illinois municipalities that sold their utilities after the state adopted FMV legislation relative to thirty‐four controls. Results suggest that FMV privatization improves personnel and technical management outcomes by reducing violations under the Safe Drinking Water Act but has no significant impact on incumbent vote share. These findings indicate that while FMV privatization may enhance utility management through political decoupling, its presumed political benefits warrant further investigation.
中文
通过公平市场价值私有化实现的政治脱钩能否改善管理与政治结果？来自水务公用事业出售的启示
摘要
摘要：许多美国市政当局面临环境服务供给挑战，包括基础设施老化和债务上升。作为回应，若干州已通过公平市场价值（FMV）立法，旨在激励私营企业收购并投资于市政公用事业——尤其是水务部门。然而，FMV私有化的影响仍未得到充分研究。本研究以政治脱钩理论为指导，假设FMV私有化会改善饮用水公用事业管理以及地方现任官员的选举结果。我们采用双重差分设计，分析伊利诺伊州在通过FMV立法后出售其公用事业的15个市政当局，并将其与34个对照市政当局进行比较。结果表明，FMV私有化通过减少《安全饮用水法》下的违规行为，改善了人员和技术管理结果，但对现任官员得票率没有显著影响。这些发现表明，尽管FMV私有化可能通过政治脱钩提升公用事业管理，但其假定的政治收益仍有待进一步研究。
关键词
公平市场价值私有化、政治脱钩、水务公用事业、饮用水管理、地方选举、双重差分法、市政 privatization、公共事业出售