Research on the value chains between wastewater providers and farmers in Braunschweig, revealed the need for hybrid and hierarchical elements in the governance structure for wastewater reuse.
“This paper explores the institutions and governance structures for coordinating transactions and interdependences between actors in linked value chains of wastewater treatment and crop production. It aims to analyze how transactions and interdependences shape the governance structures for reusing wastewater at the local level. A transaction costs analysis based on data from semi-structured interviews and a questionnaire is applied to the agricultural wastewater reuse scheme of the Wastewater Association Braunschweig (Germany). The results show that different governance structures are needed to match with the different properties and requirements of the transactions and activities between linked value chains of wastewater treatment and crop production. Interdependences resulting from transactions between wastewater providers and farmers increase the need for hybrid and hierarchical elements in the governance structures for wastewater reuse.”