EFFICIENCY PROBLEMS FROM USER FEES IN MUNICIPAL WASTEWATER TREATMENT1

ABSTRACT: The Environmental Protection Agency administers a construction grant program to encourage abatement of wastewater pollution by sharing with municipalities the costs of wastewater treatment facilities. The enabling legislation (P.L. 92–500) specifies that EPA's cost share will be 75% of construction costs. It further requires municipalities to collect user fees from industrial users of the facilities to repay that part of the federal grant allocable to the treatment of industrial wastewater. The municipality must return half of the user fees collected to the U.S. Treasury; the municipality is allowed to retain the remaining half. Retention by municipalities of these user fees lowers their effective cost shares and results in the following consequences: (1) a bias for municipalities to select certain kinds of abatement techniques regardless of whether or not they are the least-cost techniques from the national perspective; (2) a bias for municipalities to select larger-than-optimal scales of abatement facilities; (3) a hidden federal subsidy to industry; and (4) grants that favor industrial communities. This article examines the legislative and regulatory requirements for user charges, derives the algebraic expressions for calculating the real federal, municipal, and industrial cost shares with user fees; computes municipal cost shares for selected values of the determinant factors; evaluates efficiency and other consequences of current user fee arrangements; and concludes that the efficiency distortions brought about by the impacts of user fees on cost sharing could be eliminated by requiring that all user fees collected from industry against the federal cost share be returned to the U.S. Treasury.     

The Great Lake’s future at a cross road

Some argue that a collective vision for the future of the Laurentian Great Lakes is embodied in the␣Great Lakes Water Quality Agreement (GLWQA). The GLWQA is a binational agreement, first signed in 1972 by Prime Minister Pierre Trudeau and President Richard Nixon, wherein the two countries (the Parties) commit to “restore and maintain the chemical, physical and biological integrity of the waters of the Great Lakes Basin Ecosystem.” Article X of the Agreement states that the Parties shall conduct a comprehensive review of the operation and effectiveness of this Agreement following every third biennial report of the [International Joint] Commission (IJC). The IJC’s 12th Biennial Report, released in 2004, triggered this important science, program, and policy review which commenced May 2006. This essay makes the case for a rigorous review, that explores deliberately the future scope of the Agreement to protect the world’s largest surface freshwater resource, and calls for innovation in the governance regime of this binational ecosystem.     

Compromising sustainable mobility? The case of the Gothenburg congestion tax

Congestion charging is widely considered an effective policy measure to regulate and reduce car traffic demand and associated environmental and health problems in cities. However, introducing restrictive measures to constrain individual choice and behaviour for the common good has often proven difficult. Using a specific case, the Gothenburg congestion tax introduced in 2013, we study the policy process behind the introduction of the tax and assess to what extent green values were compromised along the way. The tax was made possible by co-financing infrastructure investments, including roads, which seemingly contradicts stated goals of reducing car traffic and emissions. We show how the tax was ‘muddled through’ in a top-down political compromise by a grand coalition where different interests could legitimate their support in relation to the achievement of partially conflicting objectives and projects. However, to declare the regulatory goals fully neutralised would be to underestimate the scheme's direct environmental effects and restrictive potential. Finding a compromise with powerful political and economic interests was necessary to get it off the ground. Once launched, however, it can over time regain its restrictive properties and lead to more profound long-term effects.     

The effectiveness of forecast-based humanitarian assistance in anticipation of extreme winters: a case study of vulnerable herders in Mongolia

This paper presents evidence relating to a forecast-based cash and non-food item distribution among vulnerable herder households during the 2017–18 dzud (extreme winter) season in Mongolia, and analyses the results of a quasi-experimental study evaluating its impacts. An innovative approach in disaster risk reduction, forecast-based financing (FbF) can have short- and long-term benefits to vulnerable households but remains understudied. The paper contributes information on a multimodal FbF programme offering one-off cash grants and in-kind veterinary kits. The data found significant effects of reduced mortality and increased offspring survival in some types of livestock, and that the timing of FbF assistance is crucial, as reported early assistance correlated to positive outcomes in terms of reduced animal mortality. These findings can be used to design more effective FbF interventions, to understand better the appropriateness of FbF designs, and to use early warnings and early actions to help people prepare and withstand disasters such as dzuds.     

Decision making for multiple utilization of water resources in New Zealand

The Clutha is the largest river in New Zealand. The last two decades have witnessed major conflicts centered on the utilization of the water resources of the upper Clutha river. These conflicts have by no means been finally resolved. The focus of this article is on institutional arrangements for water resource management on the Clutha, with particular reference to the decision-making processes that have culminated in the building of the high dam. It critically evaluates recent experiences and comments on future prospects for resolving resource use conflicts rationally through planning for multiple utilization in a climate of market led policies of the present government.The study demonstrates the inevitable conflicts that can arise within a public bureaucracy that combines dual responsibilities for policy making and operational functions. Hitherto, central government has been able to manipulate the water resource allocation process to its advantage because of a lack of clear separation between its two roles as a policy maker and developer. The conflicts that have manifested themselves during the last two decades over the Clutha should be seen as part of a wider public debate during the last two decades concerning resource utilization in New Zealand. The Clutha controversy was preceded by comparable concerns over the rising of the level of Lake Manapouri during the 1960s and has been followed by the debate over the think big resource development projects during the 1980s.The election of the fourth Labour government in 1983 has heralded a political and economic policy shift in New Zealand towards minimizing the role of public intervention in resource allocation and major structural reforms in the relative roles of central and regional government in resource management. The significance of these changes pose important implications for the future management of the Clutha.     

User pay financing of stormwater management: A case-study in Ottawa-Carleton, Ontario

Stormwater management upgrade and maintenance costs in the province of Ontario are significant. As capital grant programs decline, municipalities are exploring alternative means for financing the abatement of stormwater quantity and quality problems. User pay financing represents one such option. The economic, institutional and legal issues related to implementing user pay financing of stormwater management in Ontario are addressed using the Regional Municipality of Ottawa-Carleton (RMOC) as a case-study. The paper reviews the experience with user pay stormwater management programs in Canada and the USA, and recent stormwater issues and financing needs in the RMOC. The presented spreadsheet rate model is based on stormwater quantity and quality considerations and best management practices (BMPs) for various land-use categories. The modelling results vary depending on the inclusion or exemption of certain land-use categories and whether BMPs are implemented. Preliminary results indicate the monthly stormwater user charges are comparable with those charged in USA programs. In Ontario, existing statutes provide the enabling legislation for stormwater user charges, and there are no legal or regulatory barriers to implementing them. However, program we start-up costs and public perception could be significant obstacles to instituting user charges.     

The Three Gorges Project in Figures

Abstact

Ecological city is the advanced mode of harmonious development of city. Constant improvement is being made in the development of ecological city. However, building ecological city is an enormous project that calls for a huge amount of capital. The government fund is far from adequate. This paper probes into the fund issue and discusses in detail the mechanism of investment and financing in building ecological city from various aspects such as diversification of the investment subjects and the modes of financing.     

Exploring trends, sources, and causes of environmental funding: a study of Florida counties

Florida is one of the largest spenders on the environment in the U.S. Employing a database from Florida counties, this study examines two distinct environmental funding areas in government: funding to protect the environment, and funding to develop the environment. These two types of funding serve different purposes, support different activities and operations, and draw from different revenue sources. The results show that environmental funding in government is a response to the environmental pressure generated by economic activities and population growth. Counties with a higher level of manufacturing and farming activity spend more to protect the environment, while counties with higher population densities spend more to develop the environment. Moreover, counties with more funding for public safety and economic development activities spend less on the environment, indicating that environmental funding is influenced by the political processes in public budgeting in which diversified interests compete for resources. These results show that environmental spending in government is the result of combined forces arising from environmental pressure and budgetary politics.     

Green shipping practices in the shipping industry: Conceptualization, adoption, and implications

There have been increasing concerns about the adverse impacts on the environment caused by cargo movement in international trade. Different stakeholders ranging from shippers and carriers to government bodies and international communities have expressed worries about the environmental impacts brought by shipping related activities. The pollution and waste created in the shipping processes have imposed environmental burdens and accelerated resource depletion. The situation is set to worsen in the face of intensifying trade globalization, which has contributed to sustained growth in international shipping activities. To help protect the environment, many shipping firms have taken the initiative to find ways to lessen the environmental damage of their operations while enhancing their performance. The objective of this study is to examine the environmental awareness and the environmental measures taken in the shipping industry. We propose a conceptual framework for evaluating green shipping practices and develop several propositions stating the conditions under which shipping firms would behave in an environmentally responsible manner. We conclude with managerial and policy implications of the conceptual framework to promote green shipping practices in the shipping industry.