“SMART WATER”: FROM COASEAN TRANSACTION TO ITS DYNAMIC VERSION
Creators: name: Yerznkyan, B.
name: Fontana, K.
Publisher: name: The Scientific Heritage
Year: 2021
Subjects: social justice
environmental component
Coasean transaction
dynamics
water resources
reuse
efficient use
“smart water”
sustainable development
IT platforms
monitoring
closed-loop economy
financing

description: Subject. Exploring the possibilities of incorporating concepts of market efficiency and social justice into a single dynamic system that takes into account the cultural and historical identity of society in unity with the biosphere to meet the local and long-term challenges of sustainable development, using water reuse as part of a closedloop economy. Goal. The main idea of the study is to explore the possibility of transforming negative effects into useful products/resources, as demonstrated by the concept of reuse of treated wastewater. As an illustration of the implementation of the market transaction of Coase in the dynamics are IT platforms, combining the features of the media and processing types of information supply systems for public use. Methodology. Analytical and logical methods were used, theoretical developments in identifying the problems of water supply of specific quality to users and consumers for different applications, making management decisions aimed at reducing the existing and preventing the projected pressure on water resources using IT platforms and the possibilities of the closed-loop economy Results. An alternative to local decisions has been proposed, which takes into account the interests of society, including in the future, taking into account the environmental component. The importance of incorporating the concept of market efficiency and social justice as a single dynamic system that takes into account, among other things, cultural and national traditions in unity with the biosphere. It is shown that the implementation of IT platforms, particularly in the water sector, combining the features of media and processing types of information supply systems for public use, is a dynamic alternative to the market transaction of Coase. It is stressed, however, that the opportunities offered by water reuse, as an important element of the closed-loop economy, are still not fully utilized, and the introduction of IT platforms in this area is going slowly. The financing of water projects is considered, taking into account the current realities. Scope of the results. The results of the study may resonate with the scientific community; the findings can be used at different levels of water management for the implementation of the principles of the closed-loop economy, as well as for the implementation of IT platforms in the water sector to achieve sustainable development goals. Conclusions. The lack of quality monitoring of water facilities, runoff and water supply systems, along with the slow pace of digital adoption in the environmental sector in general and the water sector in particular, are deterrents to the introduction of closed-loop economy principles in the water sector, including the reuse of treated wastewater, as well as the transition to “smart water”. IT platforms in the water sector should be implemented as open digital communication platforms to disseminate the information needed to make appropriate management decisions; the harmony (albeit relative) of the relevant institutions contributes to the strengthening of the institutional support of IT platforms, and hence the effectiveness of the implementation of the dynamic alternative to Coase’s market transaction. Water RU projects, as well as the overall implementation of the concept of sustainable water management, including the introduction of IT platforms, should be considered in conjunction with their financing, which implies the development of a "financing plan" in parallel with the development of an "action plan". Emphasis is made on the fact that at the state/municipal levels, an assessment of social and environmental benefits in the implementation/non-realization of water RU projects is a prerequisite for management decisions.