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Drink what you can pay for: Financing infrastructure in a fragmented water system

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  • Tyler A Scott

    (University of California, Davis, USA)

  • Tima Moldogaziev

    (University of Georgia, USA)

  • Robert A Greer

Abstract

The article investigates the relationship between environmental violations and water utility infrastructure investment in the Houston metropolitan area through a lens of institutional fragmentation. Special purpose water districts are highly capital-intensive service jurisdictions, which makes them extremely dependent on local fiscal capacity. Fiscal capacity is also important for a water district’s ability to respond to performance failures, particularly regulatory violations. Resource base, however, is unevenly distributed between special purpose water districts in the highly fragmented Houston metro area. Therefore, while capital investments may significantly covary with fiscal capacity, not all water districts are expected to be capable of making needed infrastructure investment when problems arise. There are two major policy-relevant findings that we offer in the article. Institutional fragmentation in relatively more affluent areas does not impede the ability to invest in capital infrastructure related to both service pressures and regulatory violations. However, such ability is limited in relatively less affluent areas, where the fiscal capacity to respond to service delivery problems is limited.

Suggested Citation

  • Tyler A Scott & Tima Moldogaziev & Robert A Greer, 2018. "Drink what you can pay for: Financing infrastructure in a fragmented water system," Urban Studies, Urban Studies Journal Limited, vol. 55(13), pages 2821-2837, October.
    • Handle: RePEc:sae:urbstu:v:55:y:2018:i:13:p:2821-2837
    DOI: 10.1177/0042098017729092
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    References listed on IDEAS

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    1. John R. Larson & Larry J. Dziuk, 1995. "Groundwater to Surface Water Conversion in the Houston‐Galveston Region: Impact of Mandates on Water Quality, Subsidence, and Water Rates," Risk Analysis, John Wiley & Sons, vol. 15(5), pages 545-554, October.
    2. Craig L. Johnson & Martin J. Luby & Tima T. Moldogaziev, 2014. "State and Local Financial Instruments," Books, Edward Elgar Publishing, number 15845.
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    5. Wen-Hao Chen & John Myles & Garnett Picot, 2012. "Why Have Poorer Neighbourhoods Stagnated Economically while the Richer Have Flourished? Neighbourhood Income Inequality in Canadian Cities," Urban Studies, Urban Studies Journal Limited, vol. 49(4), pages 877-896, March.
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    Citations

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    Cited by:

    1. HyungGun Park, 2021. "Income sorting by specialized services: Service differentiation by overlapping governments," Social Science Quarterly, Southwestern Social Science Association, vol. 102(6), pages 2761-2775, November.
    2. Deslatte, Aaron & Scott, Tyler A. & Carter, David P., 2019. "Specialized governance and regional land-use outcomes: A spatial analysis of Florida community development districts," Land Use Policy, Elsevier, vol. 83(C), pages 227-239.
    3. Dobbin, Kristin B. & Fencl, Amanda L., 2021. "Institutional diversity and safe drinking water provision in the United States," Utilities Policy, Elsevier, vol. 73(C).
    4. Agustin Leon-Moreta & Vittoria Totaro, 2023. "Interlocal interactions, municipal boundaries and water and wastewater expenditure in city-regions," Urban Studies, Urban Studies Journal Limited, vol. 60(1), pages 46-66, January.
    5. Scott, Ryan P. & Scott, Tyler A. & Greer, Robert A., 2019. "The environmental and safety performance of gas utilities in the United States," Energy Policy, Elsevier, vol. 133(C).
    6. Ryan P. Scott & Tyler A. Scott & Robert A. Greer, 2022. "Who owns the pipes? Utility ownership, infrastructure conditions, and methane emissions in United States natural gas distribution," Review of Policy Research, Policy Studies Organization, vol. 39(2), pages 170-198, March.

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