Pay to protect: Examining the factors of the use of market?based instruments for local water sustainability

Given the myriad of policy instruments aimed at enhancing water quantity conservation available to municipalities, what drives them opt for a market-based instrument (MBI)? MBIs can be effective and efficient enhance conservation, but there is little known about why municipalities utilize them. This study hypothesizes that three contextual elements influence municipality's use an MBI: natural, political, structural environment. The results from two logistic regression models suggest in municipality suffering higher drought level, both conservative political environment operating under council-manager form government (with effect more pronounced non-council-manager form) will increase likelihood it MBI address conservation. Dada la miríada de instrumentos política destinados mejorar conservación cantidad agua disponible para los municipios, ¿qué impulsa optar por un instrumento basado en el mercado Los pueden ser efectivos y eficientes agua, pero se sabe poco acerca qué municipios utilizan. Este estudio plantea hipótesis que tres elementos contextuales influyen uso parte municipio: entorno político estructural. resultados dos modelos regresión logística sugieren municipio sufre nivel más alto sequía, tanto conservador como funcionamiento bajo una forma gobierno concejo-administrador (con efecto pronunciado no concejo-administrador) aumentarán probabilidad utilice abordar del agua. ?????????????????????????????????????(MBI)?MBI?????????????????????????????????????MBI???????????????????MBI???:????????????????????????????????????????????????????????-????????????????????MBI???????????????????????-????????????? Over past several decades, policymakers across globe have developed variety management tools practices simultaneously problematic environmental conditions ensure sustainable development their societies economies. Among these varied are those go beyond command-and-control regulation instead market-mechanisms solutions. In 1989, provision industry England Wales was taken over by private companies effort meet objectives lower cost (Saal & Parker, 2001). Countries like India China relied on “feed tariffs” as mechanism provide payments energy users renewable they generate (Lewis, 2007). United States, cities Austin, Denver, Portland, San Francisco, Seattle established progressive, future-oriented policies allow grow most environmentally socially responsible manner possible (Outka Feiock, 2012; Portney, 2003; Zeemering, 2009). many US urban areas, (MBIs)—like taxing single-use plastic bags, tax-deductible activities money spent soil traffic congestion/variable parking pricing, increasing block pricing structures—are utilized alongside traditional regulations promoting development. These “that encourage behavior through market signals rather than explicit directives” (Stavins, 2002, p. 1); include mechanisms, “such tradable permits or pollution charges, [that] often described ‘harnessing forces’” 1). Modern sustainability policy, seems, involves flexibility innovation formulating specific tools. While truth large areas relatively early stage efforts overall (Svara et al., 2011), currently implementing some program (Opp Saunders, 2013; Svara 2011). Urban emerging economies also proactive actions increasingly capacity efficiency challenges (Moarif Rastogi, 2012). multiple made local governments broadly used practice quality sides, our focuses supply side water. Policies conservation—defined here (Abu Qdais Al Nassay, 2001; Dagnino Ward, Rubenstein Ortolano, 1984)—are one visible important components almost all municipalities' broad practices. surprise given fundamental resource municipality—not only its consumptive residents, applications industrial commercial sectors. especially true intensive industries mining/ore refining, breweries, pulp paper, agriculture, electricity generation, oil gas production. Therefore, incentive supplies secure societal, economic reasons; this makes choice using even understand make every choose help better sustainability. Market-based been attractive addition classic forms intervention addressing degradation (Daley Layton, 2004; Eckerd Heidelberg, 2014; Moarif Stavins Whitehead, 1997). Much debate surrounding free environmentalism hinges differing views appropriate role versus public activity (Budds McGranahan, 2003). thought potential altering municipal residents ways necessary achieve goals (Eckerd Stavins, 2000). Moreover, signal willingness policy-makers markets improve protect (Hockenstein being protection mechanisms become tool reduce consumption changing attitudes towards proactively use. Although becoming popular among not widely benefits would suggest. lack action has blamed number barriers acceptance part managers, makers, systematic investigation phenomena lacking. work done examining primarily looks institutional variables (Teodoro, 2010), focused outside small geographical area (Dinar Ash, 2015; Li 2016), does focus key believed critical (Hewitt, seeks examine lens external events particular, pursues answer question how environmental, contexts affect employment structures municipalities. To do so first discusses history scholars addressed variation governments. It then factors—namely contexts—that thoroughly examined date, posits four hypotheses detailing effects Next, analysis presented, implications discussed. Through demonstrates struggling with supportive context likely structure Since late 1980s, market-oriented central new reinventing movements. claimed broader shift strengthen transparency innovative less bureaucratic (Hood, 1991; Osborne Gaebler, 1992). As result, levels expanded tool-kits non-command-and-control diverse such protection. And because “market-based balance growth land,” importance makers (Stavins 1997, 113). At federal state levels, agencies implementation credit/permit trading assist (Ellerman Environmental Protection Agency (EPA) emissions allows firms wish need pollutants purchase “credits” other not, while similar schemes implemented deal quality, lead, sulfur dioxide, others, success (Kerr Newell, Schmalensee 1998; Weinberg 1993). failure is, according economists, function design substance (Lachman 2016). For example, Fisher-Vanden Olmstead (2013) Total Maximum Daily Load (TMDL) program—which sets “pollution budget” body water—to further develop watershed and/or offset desirable outcomes, arguing “current expanding regionally physical characteristics pollution” (p. 168). Developing allocation pollution, cap-and-trade programs, if enhanced, sufficient volume, measurement/enforcement problems (Fisher-Vanden Olmstead, 2010). words, current limitations lie political/policy realm, (Cook, 2002; Lee, 1997; we study. Other non-exchange policy-makers. An emissions/carbon tax which places price emission specified unit place Ireland, Chile, Sweden, South Africa, nation-wide taxes require difficult-to-execute, reliable measure emissions, enforcement well empirically standard acceptable amount (Tietenberg Lewis, West Wolverton, Beyond establishing option subsidizing deem beneficial By cleaner energy—wind solar, example—through incentives preferential financing, businesses previously “dirtier” induced “cleaner” sources (West However, argue subsidization distorts forces counteract good Similar exist within arena specifically, solving problem, although yet established. US, western states, governed “first-in-right, first-in-use” prior appropriation doctrine 2015). means senior claimant right superior claim come after. rights scheme truncated much (e.g., ownership states), remains substantial barrier transfers rights. A transfer may future enable conservation-minded Some states Colorado) attempted solve introducing banks markets, where usage traded similarly market. Yet, mentioned above, hampered poor design. different type considered Georgia sought facilitate credits, Under scheme, “credits could measured terms gallons per day saved plumbing retrofits, leak detection, improved Water conserved represented credits turn exchanged withdrawal permit region capped withdrawals…,” (Blount, 2009, 54). legislation, however, determined, fate insufficient incentivizing level—our emphasis study—policy-makers access numerous landscape watering restrictions rationing. Perhaps common financial (Lord 1983). Municipalities alter base charge along rates. instance, x/m3 1 10 m3 usage, 2x/m3 20 3x/m3 30 etc. special districts rural districts) consumer Hewitt, 2000; 2009; Teodoro, Increasing rate structures—which when consumer—and seasonal based season—are clear induce consumers conserve (Michell Chesnutt, Whitcomb, 2005), decide conservation-centric structures. recently begun question. majority 2016; 2010) point arrangements factors explaining government—municipalities, districts, counties—use MBIs. (2009) interestingly locality operates, leave examination later address. study, larger implement progressive all, emphasizing natural/physical, factors. We primary governments' decision contexts. admittedly idea; long tradition literature emphasizes types policymaking. Numerous framed decision-making process arenas around world nature actors community involved, conditions, rules-in-use arrangements; demonstrated each plays determining scope depth (Brown Hess, 2017; Lubell 2005; Ostrom, 1990; Polski 2017). What new, policies. building few who policymakers. studies conducted generally found understanding specifically (Berry Dinar solutions issues (Mullin, 2008, Mullin Rubado, either limited emphasize non-institutional degree feel essential. centers variables. There ample evidence problem severity (Kalesnikaite Neshkova, 2020; Karch, 2006; Nice, 1994; Potoski Woods, Sapat, 2004). respect concerns; previous concerns increase—e.g., air hazardous waste, stress—policymakers innovate adopt mitigate (Alberini 1999; Ando Polasub, Bacot Dawes, 1996; Dolsak Sampson, Mullin, 2008; severe occurs regularity, unreasonable expect authorities see survival prosperity communities. natural/physical phenomenon speaking, something able control great extent. Rather, must aware react appropriately presence drought, therefore, priority reducing eliminating negative externalities. Command-and-control systems create impose fines penalties; consider differences exploit efficiency. structured properly, achieving savings greater technological result (Langniss Praetorius, Lockie, 2002). addition, shown real demand—namely, demand sensitive (Cavanagh Gaudin, 2007; 2009)—although vary demographics (Mansur programs suffer effectiveness clear, instruments; situation conservation-focused not. Put formally: Hypothesis 1.As worsen, creation space conducive MBIs, factor. fact, toolkit prioritize operate climate. defines decisions Font Subirats, 2010; Kim Verweij, 2009)—sometimes (Stafford, 2008). sustainability—and conservation—as inclined leadership (Kwon Bailey, 2019), same dynamic applied tools, Their cost-effectiveness ability citizen behaviors related very whose leaders sense, intuitively, government's value priority, want employ instrument, one, reach goals. posit following hypothesis: 2.In relationship suffers worsening conditions; post interactive formally here: 2.1.In MBI-conducive enhanced located proponents officials conservatism MBIs' basic principals, therefore supporters “free market” apt support assertions supported research finds ideology clearly influences instrument—direct/command-and-control indirect/market-based. preferred politically climates, whereas direct liberal climates (Dunlap Feiock Jordan Wurzel 2013). another; interaction reinforcing—positive interaction—or repelling—negative (Yi One interactions “the earlier policies, i.e., crowd out options limit alternatives makers” 2012, 196). ideas dominate, look feasible tool. More formally, again, 3.When operates environment, When struggle challenge, tackle conserving resources directly residents' water, time congruent following: 3.1.When Again, circumstances, instrument. Our argument binary MBI. exploration discount jurisdiction's policy. interested factor particularly issues. element governing affects making under. mayor-council reformed compared. emerged Progressive Movement 20th-century emphasized unbiased, professional, governance (Feiock ran sharp contrast prioritized electoral motivations policymaking process. Policy consistently government, “political” administration lessened professional expertise (Bae Clingermayer Lineberry Fowler, 1967; Lubell, Ramirez Cruz, Outka Nelson, values orientation, consequences. Because efficiently say, irrigation monitoring staff, hypothesize relationship: 4.In Like compounds situation, driving city managers aggressive devising strategies supply: 4.1.In test framework derivative hypotheses, take deliberately quantitative approach. 2015, International City/County Management Association (ICMA) Local Government Sustainability Practices survey, polling 1899 were selected sample frame. survey asked battery sustainability-focused questions recycling, land use), governments, 1474 classified included survey; includes cities, towns/townships, villages. gathered additional data surveyed, including demographic, fiscal information. sources, Census Bureau, National Drought Mitigation Center's Monitor, Geolytics, Dave Leip's Atlas Presidential Elections. After constructing dataset statistical model, left 1462 analysis. Th