Institutional Reforms to Enhance Urban Water Infrastructure with Climate Change Uncertainty

Jayanath Ananda

Economic Papers, 2014, vol. 33, issue 2, 123-136

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.

Date: 2014
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