Abstract

Investment backlogs in social and technical infrastructure sectors, consequences of the demographic change as well as new challenges such as the growing immigration expose the already tense budgetary situation if many municipalities to additional risks and liabilities. Difficulties to maintain the performance of public service provision on a level that meets citizens’ preferences and a loss of trust in local politicians, both as results of these developments, call for need for action. Considerations involve alternative forms of financing and/or restructuring of public service provision. This article explores if and to what extent financial participation is an appropriate instrument to overcome supply shortfalls in the context of public service provision and simultaneously increase regional value creation and the participatory momentum. Following the theoretical framework, the case of the BurgerEnergie Rhein-Sieg eG is used as an example to demonstrate a way how to put participative financing into action and to overcome conflicts of interest between citizen’s and social welfare preferences in public service provision and simultaneously contribute to reactivate municipal democracy.

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