Operating cost of public services and city size

Abstract

Many studies have shown that some factors related to city population such as the economies or diseconomies of scale, the variations in the urban pattern linked to the city size, the special conditions of the urban environment in large cities or the changes in the level of service directly impact on the unit operating cost of urban public services. However, research has not been able to isolate their real influence, or even in what direction they work. As a result, the relationship between the city population and the unit operating cost of their public services remains unclear: some authors state that the unit operating cost of public services decreases when the population increases; others that it increases or that it follows a U-shaped function with an optimal city size. For a sample of 4875 Spanish municipalities, the combined analysis of per-capita and per-unit of infrastructure expenditure ratios has allowed us to delve into the central role of two of the aforementioned factors: the level of service and the urban pattern. Thus, for the services of public lighting, water supply, sewage and sanitation, waste collection and disposal, parks and pavement maintenance and street cleaning, higher levels of per-capita spending have been found both in municipalities with under 1000 and above 50 000 residents. However, in the smallest municipalities, the higher level of spending per resident is boosted by a less-compact urban pattern, while in the largest cities, the reason would be a better level of service.

Data availability statement

All data used during the study are available in the Database of the Effective Cost of Public Services Provided by Local Entities provided by the Spanish Ministry of Finance (2019). URL: https://serviciostelematicosext.hacienda.gob.es/sgcief/Cesel/Consulta/Consulta.aspx.

Additional information

Notes on contributors

Francisco Javier Garrido-Jiménez

Francisco Javier Garrido-Jiménez, Ph.D. Civil Engineering, is an urban engineer and researcher whose research primarily focuses on the economic sustainability of urban settlements and urban governance. He is the Technical Head of the City of Almeria Planning Board and a member of the Urban-Lab research group at University of Granada, Spain. Francisco Javier Garrido-Jiménez is also Assistant Professor at the Department of Engineering. University of Almería (UAL).

Francesc Magrinyà

Francesc Magrinyà, Ph.D. Civil Engineering, is Professor at the Department of Civil and Environmental Engineering, School of Civil Engineering at the Technical University of Catalonia – Barcelona Tech, Spain (UPC). He conducts research in the field of urban networked infrastructures and cooperation and human development. Francesc Magrinyà is in charge of the Engineering, Networks, Infrastructures and Territory Research Group at the Technical University of Catalonia – Barcelona-Tech.

María Consuelo del Moral-Ávila

María Consuelo del Moral-Ávila, Ph.D., Architect, is Professor at the Department of Architectonic Constructions at the School of Architecture, University of Granada, Spain (UGR). Her research focuses on accessible heritage and urban rehabilitation. María Consuelo del Moral-Ávila is a member of the Constructions, Materials, Restoration and Soil Dynamics research group at the University of Granada.