Urban Water Management and Market Environmentalism in Spain

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Urban Water Management and Market Environmentalism in Spain Urban Water Management and Market Environmentalism: A Historical Perspective for Barcelona and Madrid Hug March Corbella Tesi Doctoral Programa de Doctorat en Ciències Ambientals Gener 2010 Direcció: Dr. David Saurí Pujol INSTITUT DE CIÈNCIA I TECNOLOGIA AMBIENTALS (ICTA), FACULTAT DE CIÈNCIES DEPARTAMENT DE GEOGRAFIA, FACULTAT DE FILOSOFIA I LLETRES UNIVERSITAT AUTÒNOMA DE BARCELONA Urban Water Management and Market Environmentalism: A Historical Perspective for Barcelona and Madrid Programa de Doctorat en Ciències Ambientals INSTITUT DE CIÈNCIA I TECNOLOGIA AMBIENTALS (ICTA), FACULTAT DE CIÈNCIES Memòria realitzada per Hug March Corbella, sota la direcció del Dr. David Saurí Pujol, del Grup de Recerca en Aigua, Territori i Sostenibilitat (GRATS) del Departament de Geografia de la Universitat Autònoma de Barcelona, per optar al grau de Doctor en Ciències Ambientals. HUG MARCH CORBELLA DAVID SAURÍ PUJOL Bellaterra (Cerdanyola del Vallès), Gener de 2010 Tesi realitzada amb el finançament del Comissionat per a Universitats i Recerca del Departament d’Innovació, Universitats i Empresa de la Generalitat de Catalunya i del Fons Social Europeu, i amb el suport del Departament de Geografia de la Universitat Autònoma de Barcelona A la meva família per tot el que m’heu donat i perquè sense vosaltres no hauria estat possible. I a tu nina, per la teva paciència, comprensió, i sobretot amor. i a vegades ens en sortim… (Manel, Captatio benevolentiae) Agraïments: al David Saurí, el meu director, pel seu suport i els seus consells, al Departament de Geografia de la Universitat Autònoma de Barcelona per haver recolzat la meva recerca i al Departament d’Innovació, Universitats i Empresa de la Generalitat de Catalunya pel finançament de la mateixa. A la Maria Kaika i a l’Erik Swyngedouw de la Universitat de Manchester, per haver-me acollit i assessorat durant els cinc mesos de recerca en aquesta universitat. Al David Navarro de l’Agència Catalana de l’Aigua. Al Jaume Delclòs d’Enginyers Sense Fronteres. A tots els tècnics de l’administració pública i d’empreses que han col·laborat en la recerca. A Francisco Cubillo, del Canal de Isabel II, per cedir-me el seu temps. A Leandro Del Moral, per haver facilitat els contactes oportuns dins l’Administració. A l’Irene Obis, d’Aïgues Ter-Llobregat (ATLL), l’Esther Suàrez de l’Entitat Metropolitana del Medi Ambient i a l’Enric Coll de la Diputació de Barcelona per haver-me facilitat dades del cicle hidrològic. A La Vanguardia, per donar accés lliure a la seva hemeroteca digital. A les companyes i companys amb els que he compartit discussions, classes i seminaris a la School of Environment and Development (Manchester) i a l’ICTA (UAB), i en especial a en Ramon Farreny, Tarik Serrano, Laura Calvet i Jason Beery. A en Marc Parés per totes les tardes plujoses que vam suportar a Manchester i perquè al final ens n’hem sortit. A en Giorgos Kallis (ICTA) per les seves interessants classes d’Ecologia Política. A les col·legues del GRATS: Laia Domènech, Elena Domene, Merche Vidal i Anna Serra. Als companys de pis que he tingut durant aquests quatres anys. I a totes les companyes i companys del Departament de Geografia pel seu suport, pel que he après d’ells i amb ells, i pels bons moments compartits, i molt especialment a: Xavier Ferrer (gràcies), Pere Suau (Viva las Vegas!), Helena Cruz, Brais Estévez, Alfons Parcerisses, Xavier Oliveres, Maria Barrachina, Carles Guirado, Aimada Solé, Luís Herrera, Raquel Cunill, Antoni Ramon, Pere Serra, Cristian Amer, Martí Boada i Àngel Cebollada. INDEX INTRODUCTION................................................................................................................ 19 OBJECTIVES AND RESEARCH QUESTIONS........................................................................... 21 STRUCTURE OF THE THESIS ............................................................................................... 24 THEORETICAL AND METHODOLOGICAL CONCERNS........................................................... 28 Ontological concerns: conceptualization of nature and society .................................... 28 Urban Political Ecology ................................................................................................ 32 Circulation and Metabolism: key concepts ................................................................... 34 Methodological notes .................................................................................................... 36 PART 1: THEORETICAL FRAMEWORK 1 NEOLIBERAL ENVIRONMENTS? ........................................................................ 43 1.1 NEOLIBERALISM: A UNITARY CONCEPTION? ........................................................ 45 1.1.1 Tracing the “Neoliberal Project”: from Hayek to the financial crisis of 2007/08 .......................................................................................................................... 46 1.1.2 Neoliberalism today: a hybrid and an evolving project.................................... 52 1.1.3 Hybrid versus monolithic accounts of Neoliberalism ...................................... 56 1.2 INQUIRING INTO NATURE’S NEOLIBERALISM OR THE NEOLIBERALIZATION OF ENVIRONMENTAL GOVERNANCE........................................................................................ 65 1.2.1 Privatization of nature ...................................................................................... 69 1.2.2 A key concept: governance .............................................................................. 74 1.2.3 Deregulation and reregulation.......................................................................... 78 1.2.4 Commercialization, mercantilization and marketization.................................. 81 1.2.5 Commodification.............................................................................................. 83 1.2.6 Corporatization................................................................................................. 88 1.3 MARKET ENVIRONMENTALISM AND ECOLOGICAL MODERNIZATION: A CHANGE OF PARADIGM IN THE MANAGEMENT OF ENVIRONMENTAL RESOURCES?.......................... 94 1.3.1 Ecological Modernization and the technological dream .................................. 95 1.3.2 The rise of Free Market Environmentalism...................................................... 98 1.4 EPISTEMOLOGICAL CONCERNS ........................................................................... 105 1.4.1 Neoliberalism as a polysemous word............................................................. 105 1.4.2 Which is the proper scale to analyze Nature’s Neoliberalism?...................... 108 1.4.3 An analytical framework to approach the multiple faces of nature Neoliberalism .............................................................................................................. 110 2 WHY WATER? HISTORY OF THE URBANIZATION OF THE WATER FLOW AND ITS UNIQUE CHARACTERISTICS........................................................ 115 2.1.1 Is water a different and special good? ............................................................ 117 2.1.2 The existence of a natural monopoly ............................................................. 119 2.1.3 Externalities, merit good and the asymmetry of information......................... 121 2.1.4 Water: Human right, common, or commodity?.............................................. 122 2.2 STAGES IN THE URBANIZATION OF THE WATER SUPPLY ..................................... 127 2.2.1 The supremacy of private delivery in the early 19th century .......................... 127 2.2.2 The municipalization wave of late 19th and early 20th century....................... 131 2.2.3 Up-scaling the networks of government of the water supply......................... 133 2.2.4 The State retrenches, private capital pushes forward ..................................... 134 2.2.5 The stages of urbanization of water supply in the Global South.................... 135 2.3 FROM SUPPLY-SIDE TO DEMAND SIDE MANAGEMENT ........................................ 136 2.3.1 From Supply-side management….................................................................. 136 2.3.2 … to Demand-side management .................................................................... 138 9 2.4 THE NEOLIBERALIZATION OF THE WATER SUPPLY.............................................. 144 2.4.1 Important actors under neoliberal governance ............................................... 146 3 THE DEBATE ON WATER PRIVATIZATION................................................... 153 3.1 INTRODUCTION TO THE DEBATE ......................................................................... 155 3.2 THE ARGUMENT FOR PRIVATE SECTOR PARTICIPATION IN URBAN WATER SUPPLY.. ............................................................................................................................ 158 3.2.1 How ownership affects performance? Some orthodox economic theory....... 159 3.3 THE RANGE OF INSTITUTIONAL ARRANGEMENTS WITH PRIVATE CAPITAL........ 171 3.3.1 Service contract .............................................................................................. 173 3.3.2 Management contract ..................................................................................... 174 3.3.3 Lease contract................................................................................................. 175 3.3.4 Build-operate transfer contract (BOT) ........................................................... 176 3.3.5 Concession contract.......................................................................................
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