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Institutional Reforms to Enhance Urban Water Infrastructure with Climate Change Uncertainty

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  • Jayanath Ananda

Abstract

type="main" xml:id="ecpa12072-abs-0001"> Climate change adds another layer of uncertainty to the complex issue of urban water infrastructure provision. Current institutional configurations surrounding infrastructure investments are deemed inflexible and ill-equipped to deal with climate uncertainty. This paper evaluates the regulatory and planning frameworks surrounding the urban water infrastructure provision in Victoria. Regulatory inflexibility, lack of clarity in the objectives of the water agencies and opaque supply augmentation policies constrain water businesses from making flexible infrastructure decisions. Future reforms need to focus on clarifying roles and objectives of water agencies, removing barriers to supply augmentation options including inter-sectoral transfers and a regulatory model that embeds flexibility in infrastructure decision processes.

Suggested Citation

  • Jayanath Ananda, 2014. "Institutional Reforms to Enhance Urban Water Infrastructure with Climate Change Uncertainty," Economic Papers, The Economic Society of Australia, vol. 33(2), pages 123-136, June.
  • Handle: RePEc:bla:econpa:v:33:y:2014:i:2:p:123-136
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    File URL: http://hdl.handle.net/10.1111/ecpa.2014.33.issue-2
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    Cited by:

    1. Ananda, Jayanath & Hampf, Benjamin, 2015. "Measuring environmentally sensitive productivity growth: An application to the urban water sector," Ecological Economics, Elsevier, vol. 116(C), pages 211-219.

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