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JumpCrisscross • yesterday at 7:40 PM • 1 reply • view on HN

> is garbage disposal in Europe so much more efficient now that it has all been privatized, compared to the mid-90s?

Is it?

> Are trains running cheaper?

They're up about 6% in real terms (or about 0.23% a year) since 2000 [1]. That said, I don't think most European rail is privatized, so this is a strange example.

[1] https://ec.europa.eu/eurostat/databrowser/product/page/PRC_H... deflated with CP00


Replies

runarberg • yesterday at 8:35 PM

> Is it?

Yes and no. Garbage disposal is more efficient now then it was in the mid-90s, but that has everything to do with the infrastructure and nothing to do with the ownership model. More on that later.

The ownership of infrastructure and the operation are split where private operators are allowed to compete with national operators on the same infrastructure. This is true for trains and electricity, and in some cases garbage disposal. Many of the national operators are publicly traded with the national government being the majority shareholder.

Some countries in Europe have gone much further in privatizing the rail network then others. The UK being the canonical example of privatization, and Norway being an example of a country privatizing more slowly.

If the promises of neo-liberalism were true, we should see the efficiencies gained in the UK compared to Norway. Yet, no such evidence exists. And that is because efficiencies correlate with the quality and the quantity of infrastructure, not the ideological policies that dictate the ownership of the operators.

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