Value chains in water cycles

Abstract

Water management deals with great challenges regarding the demand for the many valuable functions water systems provide. The objective of optimization of the benefits related to the different values that are generated by water systems takes place in an in- ternational context with a crucial role for infrastructures. Institutional arrangements are needed to include the values that are related to the assessment of the functions of water systems in decision-making processes. Instruments like (societal) cost benefit analysis and participation of stakeholders and public could enhance this optimiza- tion, resulting in a more sustainable water management. The concepts of value-based governance and covaluation are presented, that enable value chains to provide the highest collective benefit to society. These insights are to some extent reflected by the theoretical approach of Elinor Ostrom (1990) towards common pool resources man- agement. The different theoretical insights and approaches to water management are confronted with managing of water system in practice. Further exploration requires extended research about how the valuation process should be institutionalized, about which values are to be included in the value concept and about which variables are relevant for value-based governance.