Required conditionalities in applying public choice
theory in the field of public utility services
Author:
Alexandru BOCIU
JEL:
H72, H76.
DOI:
10.20869/AUDITF/2017/147/469
Keywords:
Public choice theory, development
associations, Western region, public policy, policymakers
Abstract:
Adapting public policies on public utilities to collective
expectations of the population has always been a
challenge for both central and local public authorities in
Romania. The present article aims to highlight issues of
applicability limits of the theory of public choice. The
general objective of this research is to prove that the
practicability of public choice requires conditionality of
financial affordability. In this regard we use a theoretical
analysis on the possibility and conditions of use of the
theory of public choice in practice and an empirical
analysis based on statistical data which illustrates an up to
date comparison of the payment capacity of the sanitation
services, adapted to European standards, of the
population of the four counties of the Western Region of
Romania, Timis, Arad, Caras-Severin and Hunedoara. We
considered relevant to our study official statistics on the
age structure of the population, employment,
unemployment, social assisted individuals, students and
pensioners and the average income of all these
categories. The analysis results indicate that there are
major discrepancies of the payment capacity and financial
endurance between the population of the four counties and
that the substantiation of charging public services using
the principles of public choice would be unsustainable
financially for a large part of the population. After clarifying
these issues, the main conclusion of the study is that
public choice theory application using the majority’s
autonomy is possible only through an association of
financial affordability barriers. The relevance of the study is
to address and propose solutions to the difficult context
crossed by Romanian public authorities to find integrated
solutions, so as to develop community services at
European level, but at the same time to remain in the
sphere of needs and payment possibilities of citizens.
Abstract(189KB)
Article(405KB)