Externalities and local government policy as braking factors of the water-supply systems development in Russian towns

Maksimov, Andrey D. (2014) Externalities and local government policy as braking factors of the water-supply systems development in Russian towns. REAL CORP 2014 – PLAN IT SMART! Clever Solutions for Smart Cities. Proceedings of 19th International Conference on Urban Planning, Regional Development and Information Society. pp. 217-226.

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The article deals with the analysis in activity losses of water-supply systems in small and average towns of the Russian Federation, considering preconditions and factors of unproductive expenses. The research is made on the example of the LLC "Uralvodokanal" in Dobryanka in Perm Region – a typical representative of the town of the Russian Federation. Such settlements are characterized by having centralized engineering networks as well as high proportion of housing without modern conveniences. Noted problems are mainly acute in the country towns with the population of 10 - 50 thousand people. The maintenance of the housing and urban (utility) services (HUS) operability comes first in Russia. There are strong reasons to that: - high level of depreciation of the housing stock, urban infrastructure and fixed assets of the resource-supplying organizations (RSO); - levels of HUS costs have dramatically increased, compared to the average wages in the Russian Federation; - reduction tendencies development in the municipal budgets formation and decrease in opportunities of local governments to solve problems of housing and utility services; - increase of social tension due to the objective growth of tariffs for housing and urban services. As it is defined by the theory, negative externality effects appear in the conditions of property rights “washing out” and lack of economic feasibility of the transaction expenses connected with protection of these rights. The typical aspects of resource-supplying organizations (RSO) functioning are: shipping opportunities, law nihilism and management companies "cloning", deliberate bankruptcy of consumers, unauthorized inserts in resource transportation systems, etc. As a result all negative externalities find reflection in the increase of tariffs which leads to the decrease of service quality. Losses from externalities with the limit coefficients for tariffs growth set by federal authorities significantly reduce a share of productive costs. Low efficiency of regulatory base and poor performance of law-enforcement system not directed against unauthorized consumption, result in a steady increase of burden on conscientious consumers. Consequently, it leads to the growth of opportunism, reduction of a conscientious consumers share and inevitable destruction of infrastructure as a whole. The main proposed directions to resolve this situation are: - improvement of the regulatory base of housing and urban services; - defining a measure of territory leaders responsibilities for infrastructure operability and formation of their participation mechanisms in regulation of managing companies and RSO; - effective formation of infrastructure projects sources of financing in small country towns of the Russian Federation.

Item Type: Article
Uncontrolled Keywords: government, local , tariffs, towns, water-supply
Subjects: H Social Sciences > HG Finance
J Political Science > JS Local government Municipal government
T Technology > TD Environmental technology. Sanitary engineering
Depositing User: REAL CORP Administrator
Date Deposited: 27 Jul 2016 17:08
Last Modified: 27 Jul 2016 17:08
URI: http://repository.corp.at/id/eprint/282

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