Financial and economic determinants of collective action: The case of wastewater management
- Center for Environmental Management and Decision Support, Gregor Mendel Str. 33, A-1180 Vienna (Austria)
- Competence Centre for Decision-Aid in Environmental Management, University of Natural Resources and Life Sciences/DIB, Gregor Mendel Strasse 33, 1180 Wien (Austria)
Where public environmental funds support development of wastewater infrastructure, funding institutions ensure the economic use of funds, while the beneficiaries minimize their own costs. In rural areas, there is often a choice between decentralized or centralized (multi-village) systems: if the centralized system is most economic, then only this system is eligible for public funding. However, its implementation requires a voluntary cooperation of the concerned communities, who need to organize themselves to develop and run the infrastructure. The paper analyzes the social determinants of collaboration in a generic case study, using the following variables: method of (economic) assessment, modeled by the social discount rate, funding policy, modeled by the funding rate, and users' self-organization, modeled by cost sharing. In a borderline situation, where the centralized system turns out to be most economic, but this assessment is contingent on the assessment method, collective action may fail: the advantages of collective action from funding are too small to outweigh organizational deficiencies. Considering in this situation sanitation as a human right, authors recommend using innovative forms of organization and, if these fail, reassessing either the amount of funding or the eligibility for funding of more acceptable alternatives. - Highlights: Black-Right-Pointing-Pointer A generic case study models collective action and funding in wastewater management. Black-Right-Pointing-Pointer Determinants of success: economic assessment, funding policy and self-organization. Black-Right-Pointing-Pointer Success indicators: conflict rate, funds needed to make cost shares fair. Black-Right-Pointing-Pointer Method for analyzing centralized vs. decentralized disputes. Black-Right-Pointing-Pointer If collective action has less benefits, innovative cost sharing may ensure success.
- OSTI ID:
- 22058835
- Journal Information:
- Environmental Impact Assessment Review, Vol. 32, Issue 1; Other Information: Copyright (c) 2011 Elsevier Science B.V., Amsterdam, The Netherlands, All rights reserved.; Country of input: International Atomic Energy Agency (IAEA); ISSN 0195-9255
- Country of Publication:
- United States
- Language:
- English
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