Disambiguating Concepts of Fairness in Stormwater Management: A Review of Economic Efficiency and Equity

Abstract

To confront the converging challenges of failing infrastructure, climate change, degraded water quality, and fewer undeveloped lands, many municipalities are establishing stormwater utilities (SWUs) to allocate a dedicated funding source to stormwater management (SWM) services. As a public service, creating a “fair” SWU by defining collective values that reflect community and municipal needs is crucial. However, the prevalent professional discourse surrounding SWUs often conflates “equity” with “economic efficiency” when they are two theoretically separate concepts, which obscure concerns raised by service beneficiaries. This paper unpacks ideas of fairness based on a systematic literature review that frames SWM financing in terms of economic efficiency and SWM services in terms of distributional, procedural, and structural equity. The distinction of which is important to set appropriate expectations between SWUs and beneficiaries.