Analysis of principal-agent relationship in Slovenian water and wastewater management

Petkovšek, Veronika (author), Hrovatin, Nevenka (author), Pevcin, Primož (author)

The paper at hand analyses the principal-agent relationship, where comparative perspective between principals’ (municipalities) and agents’ (public utility providers) in the field of water and wastewater management is scrutinized. The goal of the paper is twofold: firstly, to present empirical results validating principal-agent relationships that emerged due to the reorganization process of public enterprises; secondly, to highlight the similarities and differences between the perspectives of principals and agents regarding motives, advantages and disadvantages, and price-setting in relation to the reorganization process. The empirical research is based on the primary data collected through two self-prepared and structured online questionnaires—one for municipalities, and the other for public utility providers. The results reveal similarities between public enterprises and municipalities in motivating factors for full municipal ownership. However, differences are seen among the advantages of the reorganization process. Price-setting by public utilities is recognized as a motivating mechanism for agents.

• Language: English
• Keywords: principal-agent theory, local public utilities, public enterprise, water and wastewater industry
• Work type: Article
• Typology: 1.01 - Original Scientific Article
• Organization: EF - School of Economics and Business; FU - Faculty of Administration
• Publication status: Published
• Publication version: Version of Record
• Year: 2024
• Number of pages: 17 str.
• Numbering: Vol. 8, iss. 6; article no. 3801
• PID: 20.500.12556/RUL-169959
• UDC: 352:33:005:351.777.61(497.4)
• ISSN on article: 2572-7923
• DOI: 10.24294/jipd.v8i6.3801
• COBISS.SI-ID: 197978371
• Publication date in RUL: 26.06.2025

Record is a part of a journal

• Title: Journal of infrastructure, policy and development
• Shortened title: J. infrastruct. policy dev.
• Publisher: EnPress Publisher
• ISSN: 2572-7923
• COBISS.SI-ID: 174862339

Licences

• License: CC BY 4.0, Creative Commons Attribution 4.0 International
• Link: http://creativecommons.org/licenses/by/4.0/
• Description: This is the standard Creative Commons license that gives others maximum freedom to do what they want with the work as long as they credit the author.

Secondary language

• Language: Slovenian
• Keywords: teorija principal-agent, lokalne javne službe, javno podjetje, industrija vode in odpadnih vod

Projects

• Funder: ARIS - Slovenian Research and Innovation Agency
• Project number: P5-0117
• Name: Trajnostna konkurenčnost slovenskega gospodarstva v evropskem in globalnem okviru

• Funder: ARIS - Slovenian Research and Innovation Agency
• Project number: P5-0093
• Name: Razvoj sistema učinkovite in uspešne javne uprave