Institutional innovation in urban governance: The case of climate change adaptation

Urban governance systems need to be adaptive to deal with emerging uncertainties and pressures, including those related to climate change. Realising adaptive urban governance systems requires attention to institutions, and in particular, processes of institutional innovation. Interestingly, understanding of how institutional innovation and change occurs remains a key conceptual weakness in urban climate change governance. This paper explores how institutional innovation in urban climate change governance can be conceptualised and analysed. We develop a heuristic involving three levels: (1) “visible” changes in institutional arrangements, (2) changes in underlying “rules-in-use”, and (3) the relationship to broader “governance dilemmas”. We then explore the utility of this heuristic through an exploratory case study of urban water governance in Santiago, Chile. The approach presented opens up novel possibilities for studying institutional innovation and evaluating changes in governance systems. The paper contributes to debates on innovation and its effects in urban governance, particularly under climate change.     

Barriers to Water Conservation in the Rio Grande Basin1

Abstract: The Rio Grande basin shares problems faced by many arid regions of the world: growing and competing demands for water and river flows and uses that are vulnerable to drought and climate change. In recent years legislation, administrative action, and other measures have emerged to encourage private investment in efficient agricultural water use. Nevertheless, several institutional barriers discourage irrigators from investing in water conservation measures. This article examines barriers to agricultural water conservation in the Rio Grande basin and identifies challenges and opportunities for promoting it. Several barriers to water conservation are identified: clouded titles, water transfer restrictions, illusory water savings, insecure rights to conserved water, shared carry‐over storage, interstate compacts, conservation attitudes, land tenure arrangements, and an uncertain duty of water. Based on data on water use and crop production costs, price is found to be a major factor influencing water conservation. A low water price discourages water conservation even if other institutions promote it. A high price of water encourages conservation even in the presence of other discouraging factors. In conclusion, water‐conserving policies can be more effectively implemented where water institutions and programs are designed to be compatible with water’s underlying economic scarcity.     

TECHNOLOGY,INSTITUTIONS, AND SOCIAL GOALS1

ABSTRACT: The cries of pending water crises are usually cast in terms of water availability and/or water quality. Unfortunately, the real factors underlying a perceived crisis are often overlooked and the solutions prescribed are fax from optimal when measured in either economic or social terms. Today's technology outstrips its implementation, yesterday's solutions are imposed on a new breed of problems, and a static game is being played in a dynamic world. There is a need for the application of innovative and revolutionary tactics, for modernizing institutions, and for educating technologists and decision makers alike in the art of communicating their views and skills. This is the challenge. If it is met, some predicted crises will not materialize, and many others will be diminished in scale. An exciting opportunity exists to extend the boundaries of a new era in water management.     

WATER SUPPLY,TREATMENT, DISTRUBTION,AND REUSE OPTIMIZATION IN ARID URBAN AREAS1

ABSTRACT: A Management level model has been formulated in which a system analysis format is employed to answer some of the basic questions regarding urban water management strategies The model incorporates a multilevel optimization scheme to coordinate urban water supply, distribution, and wastewater management. A test of the model's utility is made in an application to the water management problems of the Denver, Colorado metropolitan area. Denver has utilized both agricultural transfers and transmountain diversions to supplement the natural stream resources of the South Platte River. Although plans are being made to increase the capacity of these sources, increasingly stringent standards on the area's effluents are enhancing the feasibility of reclaiming and recycling a portion of the wastewater. The urban model used in this study indicates the decision points at which respective strategies are introduced. However, by formulating the model from a planner's viewpoint, the most important results gained from the analysis are the costs of various institutional constraints which may restrict the decision maker's ability to implement optimal policies.     

Water Management Decision Making in the Face of Multiple Forms of Uncertainty and Risk

In the Wasatch Range Metropolitan Area of Northern Utah, water management decision makers confront multiple forms of uncertainty and risk. Adapting to these uncertainties and risks is critical for maintaining the long‐term sustainability of the region's water supply. This study draws on interview data to assess the major challenges climatic and social changes pose to Utah's water future, as well as potential solutions. The study identifies the water management adaptation decision‐making space shaped by the interacting institutional, social, economic, political, and biophysical processes that enable and constrain sustainable water management. The study finds water managers and other water actors see challenges related to reallocating water, including equitable water transfers and stakeholder cooperation, addressing population growth, and locating additional water supplies, as more problematic than the challenges posed by climate change. Furthermore, there is significant disagreement between water actors over how to best adapt to both climatic and social changes. This study concludes with a discussion of the path dependencies that present challenges to adaptive water management decision making, as well as opportunities for the pursuit of a new water management paradigm based on soft‐path solutions. Such knowledge is useful for understanding the institutional and social adaptations needed for water management to successfully address future uncertainties and risks.     

What Influences Innovation Adoption by Water Managers? Climate Information Use in Brazil and the United States1

Abstract: This paper examines the use of climate forecasting in water management in Brazil and the United States (U.S.). Specifically, it seeks to understand how different institutional arrangements shape the willingness and ability of water managers to incorporate technoscience, especially seasonal climate forecasting (SCF), in their decision‐making process. It argues that among the many factors shaping the willingness of water managers to use SCF, institutional design and change is critical to explain different patterns in Brazil and the U.S. Moreover, factors related to individual flexibility, discretion, and accountability also affect the ability of managers to use climate information in water management. This paper finds that while water managers in the U.S operate in a mostly fragmented and risk‐averse system – which constrains the adoption of innovation – decision makers in Brazil can afford more flexibility to introduce new decision tools as a result of widespread water management reforms initiated in the 1990s.     

Beijing's Water Resources: Challenges and Solutions

Beijing's local water resources have been overexploited and the ecological and environmental pressures exceed the carrying capacity of this densely populated megacity. This article examines the current status of Beijing's water resources with respect to its industrial, residential, and eco‐environmental water usage and the challenges it may face in the near future. The article describes the context of water uses, the steps taken by Beijing to alleviate the water shortage problems, and challenges to Beijing's abilities to meet its urgent and future water needs. A multipronged strategy is proposed that aims at both the present problems and the anticipated future challenges. In particular, engineering and institutional approaches for Beijing's successful transition from overexploitation to sustainable utilization of water resources are explained. Actions include reasonable water utilization, water conservation, reclaimed wastewater, and importing water from neighboring areas. We conclude that Beijing must take additional steps in water resource management to ensure its sustainable development that involves continued urbanization sprawls and population growth. Future water resource management strategies should focus on strengthening water demand management through water conservation, efficient interbasin water transfers, use of nontraditional water resources, strategically reserving water supply, and promoting rehabilitation of the eco‐environments.     

CONJUNCTIVE SURFACE AND GROUND WATER MANAGEMENT IN THE JAKARTA REGION,INDONESIA1

ABSTRACT: This study investigates the degree of economic inefficiency of the current institutional arrangements for surface and ground water management in meeting urban water demand in the Jakarta region. A numerical model of integrated surface and ground water management is developed using GAMS (General Algebraic Modelling System) software. The model maximizes the net present value of social benefits from piped water and ground water consumption across all users over time from 1999 to 2025. Four policy scenarios are examined: the status quo, the social planner's solution, and two ground water pumping quota scenarios: an aggregate ground water pumping quota and a partial quota applied to commercial and industrial users. Three variations in each policy scenario are considered: investment in water infrastructure of the Jakarta water enterprise (PAM Jaya), water demand growth, and discount rates. The status quo, depending on the investment option, the growth of water demand, and the discount rate, results in a 7.4 to 47.8 percent loss in economic efficiency relative to the social planner's solution. The partial quota is the most feasible, applicable, and manageable scenario. The optimal investment option could increase the volume of piped water supply and reduce the cost of water production. The volume of water delivery could increase by up to 156 percent, but it implies only a 35 percent increase in the surface raw water demands above the current level. However, it does not significantly reduce cumulative ground water extraction over the time period considered.     

BUILDING THE AGENDA FOR INSTITUTIONAL RESEARCH IN WATER RESOURCE MANAGEMENT1

ABSTRACT: This paper pursues more specifically the recommendations of a recent National Research Council report recommending greater attention to research on institutions in the field of water resource management. The important challenge for the future in institutional research lies in going beyond the observation that institutions are important and in explaining instead how institutions actually affect management options and outcomes. It is possible to illuminate the relationships between institutional features and water management through comparative institutional research. This paper offers recommendations for studying water institutions in a comparative context, including methodological recommendations concerning approaches to comparative institutional research, and topics for comparative institutional research that appear especially fruitful at this time. The example of conjunctive management is used to illustrate the importance of institutional factors in water management, drawing to some extent on the authors’ recent experience with a comparative study of conjunctive management institutions.     

CLIMATE IMPACTS ON URBAN WATER RESOURCES IN THE SOUTHWES THE IMPORTANCE OF CONTEXT1

ABSTRACT: Stresses on water resources in the Southwest take many forms and emanate from many different sources, among which are complex institutional arrangements, significant areal and temporal climatic variability, and high urban growth rates. Further challenges to managing supply and demand in this water‐scarce region are posed by environmental, social, and legal differences within and between the individual urban areas. Analysis of the sensitivity of the urban water sector in the Southwest to climatic variability requires careful consideration of these factors. Such analysis, in turn, provides an essential foundation for effective evaluation of the region's sensitivity to longer term climate change.     

ADMINISTRATIVE,INSTITUTIONAL, AND STRUCTURAL CHARACTERISTICS OF AN ACTIVE WATER MARKET1

ABSTRACT: Voluntary water transfers through markets have been advocated by many diverse groups as a means to reallocate scarce water supplies in the semi-arid western U.S. Although transfers of water rights have occurred almost since the creation of prior appropriation laws over a century ago, functioning water markets have been very slow to develop and are few in number. The structure, composition, administration and transactions of one of the most well established water markets, shares in the Bureau of Reclamation, Colorado-Big Thompson project, are examined to better understand the institutional and transfer conditions that sustain an active water market. Results from a detailed study of C-BT project records reveal that between 1970 and 1993 there were 2,698 transactions through which over one-third of the project water changed ownership or type of use. Further analysis shows that the transactions involved many individual sellers and categories of buyers with different uses, including agricultural buyers. The transfer activity and efficiency of the C-BT market has lead some to suggest that it be used as a model for other markets. However, because this market has fewer institutional restrictions, a well developed infrastructure and unique market conditions, it will be difficult to transfer this model to other areas without accompanying modifications in water right administration and institutions.     

VALIDATION OF POLITICAL SIMULATION MODELS -WATER RESOURCE PROJECTS1

ABSTRACT. The critical role of political processes in water resource projects has recently been placed in a new perspective [Hall, 1970]. The “political hassle” period of institutional interaction which serves to resolve political conflicts over such aspects as organizational growth and survival, responsibility for economic liabilities, and responsibility for economic benefits, requires systematic analysis in order to improve our capability to implement water projects. Failure to properly assess the political aspects of a proposed water project may result in extensive delays with significant economic losses. The complexities associated with water use and re-use have created the need for new institutional arrangements which can more effectively function to implement policies and programs. One tool which has recently become available for the research investigator concerned with institutional interactions and political processes associated with water resource projects is the technique of computer simulation of such institutional interaction. In theory, this new approach will enable the investigator to assess the political feasibility or political acceptability of a proposed water project given existing institutional structures. Furthermore, the investigator has the opportunity to experiment with new and innovative institutional arrangements which may in turn enhance the political acceptability of a proposed project. The specific material presented within this paper reports upon the validation of an existing computer simulation model designed to replicate political interactions in resource allocation problems-including water resource problems. This validation effort is done by taking an actual water problem and comparing what the political simulation models predicts in terms of political outcomes with what actually takes place. The case study in question is the formulation and legislative development of the Michigan Bond Issue for Water Pollution Control.     

AN ECONOMIC ASSESSMENT OF GROUND WATER RECHARGE IN THE TUCSON BASIN1

ABSTRACT: Bringing water from Colorado River via the Central Arizona Project was perceived as the sole solution for Tucson Basin's water problem. Soon after Central Arizona Project's water arrived in Tucson in 1992, its quality provoked a quarrel over its use for potable purposes. A significant outcome of that quarrel was the enactment of the 1995 Proposition 200. The Proposition 200 precludes the use of Central Arizona Project's water for potable purposes, unless it is treated. Yet, it encourages using it for non‐potable purposes and for replenishing the Tucson aquifer through recharge. This paper examines the economic issues involved in utilizing Central Arizona Project's water for recharge. Four planning scenarios were designed to measure and compare the costs and benefits with and without Central Arizona Project's water recharge. Cost‐benefit analysis was utilized to measure recharge costs and benefits and to derive a rough estimate of cost savings from preventing land subsidence. The results indicate that the institutional requirements can be met with Central Arizona Project's water recharge. The economic benefits from reducing pumping cost and saving groundwater are not economically significant. Yet, when combining the use of Central Arizona Project's water for recharge and non‐potable purposes, it demonstrates positive net economic benefits.     

RURAL NONPOINT SOURCE POLLUTION CONTROL IN WISCONSIN: THE LIMITS OF A VOLUNTARY PROGRAM?1

ABSTRACT: This paper examines the relationship between best-management practices, institutional needs, and improved water quality within the watersheds of Wisconsin's program for controlling rural nonpoint source pollution. The first section describes the federal requirements for state nonpoint source programs and the legislative and management methods the state of Wisconsin uses to put those requirements into practice. The emphasis of the paper, described in the second section, is the institutional difficulty in evaluating the success of a large, integrated water quality program. Measurements which are investigated include (1) watershed water quality before and after implementation of BMPs; (2) program participation as measured by eligible vs. participating landowners, BMPs considered necessary vs. BMPs implemented, or dollars allocated to the NPS program vs. dollars expended; and (3) institutional goal coordination and management effectiveness. It is found that, despite the size and sophistication of Wisconsin's NPS program, there is little if any improvement in ambient water quality in these watersheds, probably because of a general lack of adequate participation in this voluntary program.     

REASSEMBLING HETCH HETCHY: WATER SUPPLY WITHOUT O'SHAUGHNESSY DAM1

The Hetch Hetchy System provides San Francisco with most of its water supply. O'Shaughnessy Dam is one component of this system, providing approximately 25 percent of water storage for the Hetch Hetchy System and none of its conveyance. Removing O'Shaughnessy Dam has gained interest for restoring Hetch Hetchy Valley. The water supply feasibility of removing O'Shaughnessy Dam is analyzed by examining alternative water storage and delivery operations for San Francisco using an economic engineering optimization model. This model ignores institutional and political constraints and has perfect hydrologic foresight to explore water supply possibilities through reoperation of other existing reservoirs. The economic benefits of O'Shaughnessy Dam and its alternatives are measured in terms of the quantity of water supplied to San Francisco and agricultural water users, water treatment costs, and hydropower generation. Results suggest there could be little water scarcity if O'Shaughnessy Dam were to be removed, although removal would be costly due to additional water treatment costs and lost hydropower generation.     

ECONOMIC GROWTH THROUGH WATER RESOURCE DEVELOPMENT: INDIA1

ABSTRACT India's multidimensional water development programs have contributed significantly to the promotion of the country's economic growth. Rapid growth of irrigation has substantially increased agricultural production. Hydro power generation has doubled during the last two decades, and this has accelerated industrialization and extended rural electrification. Minor irrigation has taken on a new importance in the Fourth Five Year Plan, signifying a departure from the earlier Plans. “Green Revolution” owes a large measure of its success to the availability of assured water supplies. Water development projects have also generated tremendous employment opportunities. Despite its pronounced impact on the economy, India's water planning strategy has some glaring weaknesses: the failure to incorporate “indirect benefits” in cost-benefit calculations; the under-utilization of water potential; and, the progressive increase in the cost of irrigating an acre of land. The prevailing institutional structure in India constitutes a major deterrent to the diffusion of the benefits of water development. There are stubborn psychological factors which render the adoption of innovative irrigation practices difficult. There is thus an overwhelming need to revamp India's institutional framework. On balance, however, water development in India has made its impact felt on India's myriads of villages. And from the arid “dust bowls” of India new life has emerged.     

Community‐based water supplies in Cikarang,Indonesia: are they sustainable?

Community‐based water supply (CBWS) is an example of how a community manages common pool resources (CPR). This results in an alternative approach to solve water supply problems in developing countries by enhancing community participation in managing water supply. This research evaluates the sustainability of five CBWS projects in Cikarang, Indonesia by using Ostrom's design principles, with additional sustainability factors found in the Sustainable Development Goal (SDG) on drinking water and groundwater sustainability. Quinn et al. (2007) criteria were used in the analysis, and the results show that the management of four CBWS institutions were absent and one CBWS institution was weak. With regards to the SDG's drinking water target, the CBWS institutions were unable to comply with safe water standards, and in terms of groundwater sustainability, efforts to monitor and sustain groundwater tables were absent. Results from this research suggest that more focus must be placed on water quality and groundwater sustainability for CBWS projects.     

INSTITUTIONALIZED INEFFICIENCY: THE UNFORTUNATE STRUCTURE OF COLORADO'S WATER RESOURCE MANAGEMENT SYSTEM1

ABSTRACT: This analysis identifies two basic structural features of Colorado's water management system which inhibit constructive reform and perpetuate inefficiencies in water use and distribution patterns. These features are: (1) the fragmentation of authority and influence over water, and (2) the estrangement of interest in reform from formal control over water policy. These interrelated features have continued to produce: sporadic, high conflict battles over proposed changes in the status quo; decision making which tends to exaggerate the importance of narrow, special interests while virtually ignoring legitimate interests of major sectors of the public; an inertia which discourages innovation; and an agglomeration of rules and water rights that are predicated on obsolete social and economic needs. Two radical proposals for reforming the state's water resource management system in order to overcome these problems and to enhance the probability that wise water policy will result are offered. These proposals are: (1) the abolition of the present system of water rights founded on the doctrine of prior appropriation, and (2) the consolidation of authority over water allocation in a single board of governors.     

Water management in the world of globalization

Water management is changing its paradigm. The millennia of economic indoctrination are to be replaced by the logic of ecology. The economic sector satisfying the demands for water and water‐related services guided until now by its own ideology and institutions, is gradually becoming an integral part of environmental protection and eco‐economy. Within the great diversity of national water policies, efforts towards sustainability are a dominant common objective. Discussions of the World Water Fora and other initiatives indicate that ecologically oriented water management is the emerging new challenge for achieving this objective. Ecological orientation emphasizes the unified system of the world water balance processes as transmitters of various human impacts leading to economic externalities. Water management is becoming a component of the processes of globalization primarily through its externalities requiring a comprehensive informational infrastructure as well as adequate institutional competence for their management. The paper analyzes fundamental features of the conceptual models incorporating such informational and institutional arrangements. The outlook of water is inseparably tied to the world order of the future, and water management in the world of globalization can either promote a genuine worldwide collaboration or can become a source of dangerous international tensions and conflicts.     

WATER FOR ENERGY: AN APPROACH TO COMPREHENSIVE IMPACT ASSESSMENT1

ABSTRACT: The effects of energy development on the water resources of the Colorado River and Great Basin regions is expected to be substantial. Complex physical, economic and institutional interactions may be expected. Most research on these impacts appears single purpose, fragmented, uncoordinated, and often inaccessible to potential users - particularly those with responsibility for energy/water policy and program decisions. A comprehensive, integrative framework for assessing alternative water allocation decisions is outlined, taking a heuristic decision making model for evaluating impacts on maximization of gross (or net) regional product, and regional social welfare, and for assessing the region's contribution to national objectives. The suggested model provides a structure for application and integration of data of various kinds to a range of situations arising from possible impacts from energy proposals. The focus is on water and energy relationships but the model may provide a framework for comprehensive analysis of a variety of environmental actions and resulting system perturbations and effects.