A framework for considering externalities in urban water asset management

Area of Science:

• Environmental Engineering
• Urban Planning
• Infrastructure Management

Background:

• Urban communities depend on extensive infrastructure for water resources, requiring significant capital for maintenance and upgrades.
• Water utility decisions extend beyond financial aspects, necessitating the inclusion of environmental and societal factors.

Purpose of the Study:

• To explore the concept of externalities within the context of water utility asset management.
• To present a practical framework for incorporating externalities into infrastructure investment decisions.

Main Methods:

• Conceptual analysis of externalities in asset management.
• Presentation of a case study illustrating practical implications for water utilities.
• Development of a framework for integrating externalities into decision-making processes.

Main Results:

• Externalities must be considered alongside financial factors for comprehensive infrastructure investment.
• A practical framework can facilitate the integration of environmental and societal externalities.
• The framework offers a structured approach for asset managers to enhance decision-making.

Conclusions:

• Integrating externalities into asset management is vital for sustainable urban water infrastructure.
• The proposed framework provides a valuable tool for water utilities and asset managers.
• This approach supports more holistic and responsible infrastructure investment strategies.