Adesoji Adegbulu

Financing Drinking Water ​Supply to close Infrastructure Gaps

“It’s ​possible to ​finance the ​drinking water ​supply in the ​majority of ​countries ​worldwide by ​the year 2030,” ​says Dr. ​Michael Jacob, ​lead author of ​the study from ​the Mercator ​Research ​Institute on ​Global Commons ​and Climate ​Change (MCC) in ​Berlin. In ​India alone, a ​carbon tax ​would generate ​around 115 ​billion US ​dollars a year, ​”and only a ​fraction of ​that would be ​needed for ​clean water, ​meaning that ​enough money ​would remain ​for sanitation ​and electricity,​” said the ​researcher. In ​fact, the ​needed ​infrastructure ​for this second ​largest country ​of the world ​would consume ​only about four ​percent of the ​revenue from ​the tax. ​

That said, ​there are a few ​countries, ​especially in ​Sub-Saharan ​Africa (see ​figure below), where ​carbon pricing ​would not ​suffice, namely ​because carbon ​emissions there ​are so low that ​they would ​yield little ​revenue. “​However, this ​funding gap ​could be closed ​when considering ​that developing ​countries have ​not yet ​exhausted their ​right to use ​the atmosphere,”​ says Jakob. “​Avoidance of ​emissions would ​then entitle ​them to ​compensation ​payments from ​industrialized ​countries.” ​

drinking water supply and carbon tax

The MCC study,​ which examined ​the development ​potential for ​not only water, ​sanitation and ​electricity but ​also ICT and ​roads, was ​published today ​under the title ​”Carbon pricing ​revenues could ​close ​infrastructure ​gaps” in the ​journal ​ World Development . In their ​calculations, ​the researchers ​assume that ​every country ​in the world is ​now introducing ​a steadily ​increasing ​carbon tax. In ​2020 the tax ​would have to ​be 40 US ​dollars per ​tonne of CO? ​emissions and ​increase up to ​175 US dollars ​by 2030. ​

“In addition ​to generating ​revenue for ​infrastructure, ​the tax would ​thus contribute ​to the ​international ​goal of ​limiting global ​warming to two ​degrees,” ​explains Dr. ​Sabine Fuss, co-​author of the ​study who is ​also a guest ​researcher at ​the International ​Institute for ​Applied Systems ​Analysis (IIASA)​. “This is ​because the tax ​penalizes the ​use of fossil ​fuels and ​creates ​incentives for ​zero-carbon ​technologies.” ​Money not ​needed for the ​infrastructure ​could be used ​to mitigate ​climate change ​impacts such as ​rising sea ​levels, which ​affect in ​particular the ​developing ​countries. ​

As is well ​known, raising ​the price of ​coal, oil and ​gas as part of ​climate ​protection ​measures brings ​its share of ​problems. “​Nobody wants to ​pay more. But ​that’s ​exactly why the ​idea to fund ​vital ​infrastructure ​directly from ​carbon revenue ​has clout,” ​says Jakob. ​Linking the ​revenue to a ​specific use ​increases ​acceptance ​among the ​population and ​decreases the ​risk of ​misappropriation.​ In addition, ​carbon pricing ​could be used ​to reduce the ​burdens facing ​in particular ​the poorer ​segments of the ​population, ​such as the ​value added tax.​ “One thing is ​clear: For ​climate ​protection to ​be effective it ​must be ​embedded in a ​broader ​sustainable ​development ​scheme, and ​vice versa,” ​says Jakob. “​Simply infusing ​more money ​won’t solve ​the problem. ​Instead, ​decisive ​factors such as ​a functioning ​state, ​democratic ​decision-making ​and the ​relevant ​institutions ​must be taken ​into consideration.​”

Source: EurekaAlert



Link to the cited study:

Jakob, M.; ​Chen, C.; Fuss, ​S.; Marxen, A.; ​Rao, N.; ​Edenhofer, O. (​2016): Carbon ​pricing ​revenues could ​close ​infrastructure ​gaps. ​ World Development , http://dx.doi.​org/10.1016/j.​worlddev.2016.​03.001

About the MCC:

The MCC ​explores ​sustainable ​economic ​development as ​well as the use ​of common goods ​such as global ​environmental ​systems and ​social ​infrastructures ​against the ​background of ​climate change. ​Our seven ​working groups ​are active in ​the fields of ​economic growth ​and development,​ resources and ​international ​trade, cities ​and infrastructures,​ governance and ​scientific ​policy advice. ​The MCC was co-​founded by the ​Mercator ​Foundation and ​the Potsdam ​Institute for ​Climate Impact ​Research (PIK). ​


4 responses to “Financing Drinking Water ​Supply to close Infrastructure Gaps”

  1. Abdul Eichie Avatar
    Abdul Eichie

    This post is really loaded i never realized there were actually laws penalizing legitimately or rather discouraging the use of Co2. When would Nigeria start thinking and implementing things in this direction

    1. Adesoji Adegbulu Avatar

      Yes, Abdul. There is carbon pricing, a method favored by many economists for reducing global-warming emissions. It is to charge those who emit carbon dioxide (CO2) for their emissions. That charge, called a carbon price, is the amount that must be paid for the right to emit one tonne of CO2 into the atmosphere. I believe when Nigeria become serious, this would be well implemented.

  2. Abdul Eichie Avatar
    Abdul Eichie

    Ok if you say but notice the current temperature of the Sun it has never been as hot as this in Nigeria . I went to a particular area in Port harcourt and because of the gas flaring there people can’t hang their cloths to dry outside anymore because of the gaseosu steins and this has been on for years now so if there are such laws how come all those people are just suffering

    1. Adesoji Adegbulu Avatar

      People suffer for lack of ignorance/education about something they should know. Apart from the law been in effect, people need to know their rights as citizens and what they can do properly. Here’s why we need people who can really educate and empower communities. An empowered person/community will demand what is right and will get it.