Indian Institute of Management Calcutta

Working Paper Series

WPS No 831/July, 2019

Will India’s Smart Cities be Climate Resilient?

Evidence from Pune, India
Debalina Chakravarty*
Post-Doctoral Research Fellow
Economics Group
Indian Institute of Management, Calcutta
Kolkata 700104
Email: [email protected]
(* Corresponding Author)

Runa Sarkar
Professor
Economics Group,
Indian Institute of Management, Calcutta
Kolkata 700104
E-mail ID: [email protected]

Indian Institute of Management Calcutta

Joka, D.H. Road
Kolkata 700104

URL: https://www.iimcal.ac.in/faculty/publications/working-papers/archive/2019
 Working Paper No: 831
Indian Institute of Management Calcutta

Will India’s Smart Cities be Climate Resilient?

Evidence from Pune, India
Debalina Chakravarty* Runa Sarkar**

Draft Version. Please do not quote.

Abstract
The response of a city towards climate change mitigation and adaptation is crucially linked to how the city
operates. Broadly speaking, the level of efficiency of such ‘operations’ is manifested as more efficient cities
being labelled as ‘smart cities’ in the literature, though the indicators of smart cities vary to a large extent.
With regard to urbanisation challenges in India, the Government of India initiated the Smart City Mission
in 2015 with the objective to provide the core infrastructure for a decent quality of life, clean and sustainable
environment for inclusive development and application of ‘Smart’ solutions. Examples of smart solutions
include ICT interventions for e-governance, online government services to ensure efficient and least cost
core services. The aim of the paper is to evaluate the perceived urbanisation challenges to meet the climate
resilient criteria for smart cities in India using the participatory theory of urban development. The researcher
investigates the stakeholders' perception of the existing challenges to be climate resilient for the smart cities
in Pune in India. The choice of Pune as a case study is because it has been identified as climate resilient as
well as a smart city. The analysis shows that in order to contribute in long run urban sustainability, efforts
to promote urban resilience to climate change need to be bundled with smart city missions. Integration of
all pillars is essential if a ‘Smart City’ has to play an important role in achieving the stringent climate change
targets such as limiting the global average temperature rise to 1.5°C. The institutional and technical
challenges are ranked high in the study followed by the economic and social& cultural challenges. The
research also highlights the importance of challenges such as lack of awareness of citizens, disjoint
strategies between different governing bodies, lack of proper incentive schemes for end-users, the missing
links between different stakeholders, absence of proper business model and foresight, absence of adequate
expertise etc. The paper thus provides insights for policymakers as well as micro-consumers and service
providers and developers as to how climate resiliency might be addressed as an instrument of smart city.

Keyword: Climate Resiliency, Sustainability, Smart City, Pune

JEL Classification: P25, Q01, Q54, R00

*Corresponding Author.
Post-Doctoral Research Fellow (Economics Group), Indian Institute of Management Calcutta, Joka, Diamond Harbour
Road, Kolkata 700 104, India; Mobile: +91-9433887276 E-Mail: [email protected]/ [email protected]
** Professor of Economics, Indian Institute of Management Calcutta, Joka, Diamond Harbour Road, Kolkata 700
104, India; Mobile: +91-91630 07753 E-Mail: [email protected]

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 Working Paper No: 831
Indian Institute of Management Calcutta

Will India’s Smart Cities be Climate Resilient?

Evidence from Pune, India
Debalina Chakravarty
Runa Sarkar

1. Introduction

The Census of India (2011) states that about 32% of India's population lives in urban areas and

this could reach 40% within 2021 and 50% within 2041. 70% of the GDP can be attributed to

urban areas, while the country invests just 0.7% for urban development (Madakam & Ramaswamy,

2015). It has been predicted that India needs to create 500 new urban agglomerations in the coming

20 years to host 700 million more city dwellers by 2050 as it has been found that an average of 30

people migrates each minute from rural to urban areas of India.

Indian urban agglomeration is often confronted with multi-faceted core problems like unplanned

development, informal real estate markets, inevitable population growth, lack of infrastructure,

inadequate transport facilities, traffic congestion, poor power supply, incompetent health services

and lack of basic services. This is the case both within the city and in the suburban and peri-urban

areas. Poor natural hazard management in overpopulated areas, the prevalence of crime, and water,

soil and air pollution (as exemplified by the Delhi smog; Barry, 2016) add to the concerns. Climate

change and poor governance have led to urban populations living in conditions of persistent stress

(Madakam and Ramaswamy, 2013).

The nation started addressing urban developmental issues from 1979 onwards with the

introduction of the Integrated Development of Small and Medium Towns (IDSMT) scheme by the

central government. The objective was to improve the economic and physical infrastructure of

urban settlements with a population under 500,000. A total of 1854 towns were under this scheme,

but outcomes of the scheme were not satisfactory because of the lack of implementation capacity,

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non-availability of the investment portfolio and unencumbered land for the projects (MoHUA,

GoI, 2014). In 1993, a Mega City Scheme (MCS) was introduced for five mega cities in India with

a special focus on infrastructure development. These two schemes continued till 2005 after which

insufficiency of investment funds led to the schemes becoming dormant (Aijaz and Hoelscher,

2015). From 2005, the Government of India initiated a comprehensive scheme – Jawaharlal Nehru

National Urban Renewal Mission (JNNURM) for infrastructure development and providing

improved basic services with a special focus on the transportation sector for the urban poor in

sixty-five mission cities. While the mission achieved some successes, it was plagued by lack of

capacity, funds and insufficient planning. In 2015, a more comprehensive, transparent, inclusive

and participatory scheme was launched as Smart City Mission in India. The Smart City Mission of

the Government of India (2015) promotes cities that provide core infrastructure with a decent

quality of life to its citizens, a clean and sustainable environment and application of ‘Smart'

solutions. Such smart solutions include ICT (Information & Communication Technology)

interventions for e-governance, online government services, and improving the efficiency of core

services at a relatively low cost. The main focus of this mission is on sustainable and inclusive

development and to create a replicable model which will act as a lighthouse to other aspiring cities

(Ministry of Urban Affairs, Government of India, 2015). Of a total of around 4000 cities and towns

(Census, 2011), proposals from 90 cities were considered as winners (till June 2018) under this

mission. The urban population expected to be impacted under this scheme is 25% of the total urban

population of India (equivalent to 2.5% of the total urban population of the World). According to

the mission guidelines, the state and central Governments are expected to invest equal amounts in

the chosen cities. The total cost of this project is Rs.189,256 crores (20% for pan-city solutions

and 80% for area-based development) over five years (2015-2020). The essential features of the

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scheme are bottom-up planning based on citizen participation in preparing, planning and

programming the city-specific developmental projects under a Public-Private-Partnership (PPP)

financial model.

On the other hand, to address climate change, the Government of India adopted a National Action

Plan on Climate Change (NAPCC) as well as a National Mission for Green India from 2009.

These national schemes are complemented with missions like solar energy, enhanced the energy

efficiency, sustainable habitats, water and sustaining the Himalayan ecosystem (Ministry of

Environment and Forest, Government of India, 2010. Further, India adopted the Paris Agreement

at the COP21 in Paris on 12 December 2015. In the agreement, all participatory countries

committed to limit global temperature rise to well below 1.5 degrees Celsius. The Paris Agreement

entered into force on 4 November 2016 in India.

India is the fourth largest emitter of greenhouse gases and is responsible for 5.3% of global

emissions (GCP, 2018; WRI, 2015). The emissions intensity of India's GDP reduced by 12%

between 2005 and 2010. In 2015, India committed to reducing the emissions intensity of its GDP

by 20-25% from its 2005 levels by 2020 and by 33-35% by 2030. The role of the Paris agreement

was essential to meet the UN Sustainable Development Goals (SDGs) of 2015 to provide

affordable, scalable solutions to reduce emissions and build climate resilience.

In 2013, the Rockefeller Foundation selected four Indian cities (Pune, Bhopal, Surat and Chennai)

to identify physical, social and economic challenges for becoming Resilient, of which climate

resilience is a component. The cities were to be provided with resources such as climate strategies

and solutions necessary to develop a roadmap to resilience. Almost 1800 concrete actions and

initiatives have been identified since to create a resilient city including the climate adaptation and

mitigation actions. Popular literature says it is still possible, using a wide array of technological

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measures and changes in behaviour, through institutional and technological intervention to be on

a low carbon growth path (IPCC, 2019). The participation of the public in the formulating,

adopting and managing climate strategy cannot be undermined.

Given the increased rate of urbanisation and the looming threat of climate change, there is a

naturally strong linkage between the strategies of Smart City Mission and Climate Resiliency of

cities in any country. A careful analysis of the concepts of the Smart City Mission in India shows

that they are essentially attached to three criteria, namely, advanced information technology and

systems (March, 2016), efficacy of different production and consumption sectors with significant

emphasis on energy efficiency (Khansari, 2014; Debnath et al., 2014;), and effective societal

governance and citizen's participation (Vanolo, 2016; Joffe and Smith, 2016; Baldascino and

Mosca, 2016). Although the extent of overlap of the smart city concept and climate resilience in

existing initiatives at the implementation stage is minimal, there is still some hope. Evidence shows

there are existing policies aimed at addressing urban environmental problems, such as housing in

risk-prone areas that can be adapted to promote climate change resilience at little or no cost

(Hardoy et al., 2009; Prasad et al., 2008). Essentially, climate-resilient smart strategy implies a

simultaneous improvement in productivity, the adaptive capacity of the economy with less

greenhouse gas emission. The attention to climate resiliency is already embedded in the actions

and strategies of Smart city Mission. But there is a need for simultaneous inclusion of actions

together with effectual measures addressing the challenges.

In this backdrop, the aim of this paper is to evaluate the potential of Indian smart cities to be climate

resilient by identifying the existing challenges to be climate resilient as perceived by the

stakeholders in the cities. The specific research question, therefore, is what are the challenges

perceived by the stakeholders of India’s Smart Cities to be Climate Resilient, and this question has

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been addressed by stakeholders in the smart city of Pune, India. Further, the specific implications

of the challenges identified with respect to climate resilience for a smart city are studied in the

context of urban transportation in Pune.

This study has been organised into five sections. Section 2 briefly discusses the methodology

deployed to study the stakeholders’ opinion on the resiliency of smart city discourse. It also

includes the description of the area of study, the structure of the questionnaire, data collection and

analytical approach. Section 3 describes the findings of the study. This section identifies the

perception of the stakeholders about the challenges and their corresponding basis for the city of

Pune. The climate resilient actions under the smart city mission particularly for the transportation

sector, strategies and their corresponding challenges have been discussed next in section 4. The

last section summarizes and concludes.

2. Stakeholders' opinion on the climate resiliency of Smart city: tools and methods

This is empirical research based on a case study from Pune. The study has captured the perception

about the challenges to be climate resilient for a smart city like Pune of different stakeholders like

a consultant of the projects, end-users etc. A detailed theoretical and empirical background of the

study is depicted in the following sections.

2.1. Theoretical background: Participatory Theory for urban development

The sustainable development goal (Goal 11) target that ‘by 2020, substantially increase the number

of cities and human settlements adopting and implementing integrated policies and plans towards

inclusion, resource efficiency, mitigation and adaptation to climate change, resilience to disasters,

and develop and implement, through an effective enhancement in inclusive and sustainable

urbanization and creating capacity for integrated and sustainable participatory urban planning and

management specially in developing countries. This is in line with the Sendai Framework for

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Disaster Risk Reduction 2015-2030 which prescribes holistic disaster risk management for all. The

basis of this study is the Participatory Approach for urban development, in line with SDG 11. The

voluminous literature on this suggests that the approach has evolved from collecting accurate and

detailed data from the field to developing people-centric urban development strategies ensuring

good governance (Certoma et al., 2015). The literature argues that this approach could ensure

equitable access and control over resources and decision-making process by the local people on

one hand while being used by policymakers to justify their development strategies on the other

(Jillella et al., 2015). Integration of local people into development strategy includes enabling local

people to identify the constraints and develop an action plan accordingly for efficient resource

allocation. Within these participatory action methodologies, the information is owned by the

community and becomes a means through which local people can identify their needs and

priorities, analyse what resources are available locally and externally and consider how various

local groups and in some instances, the entire community, might access and manage those

resources (Malekpour et al., 2015, Israel et al., 2019). One of the tools used for active community

participation in urban areas is the collective planning of new settlement designs to meet the needs

of residents. Once a plan of the existing settlement has been made, residents' can discuss how to

change and or improve services. Though this kind of community-based development is not a

simple process and reservations have been expressed with respect to the tools, techniques and

nature of participation (Dodman and Mitlin, 2013; Eversole, 2010; Opare, 2007), this kind of

approach could strengthen knowledge and capacity of the community, their ability to negotiate

with policymakers, their capability to devise and initiate strategies and and their ability to respond

and resolve constraints and conflicts within the community (Potts , 2010; Platteau and Abraham,

2002; Conning and Kevane , 2002; Fredericksen and London, 2000).

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2.2. Area of study- Pune city

The city is located in the state of Maharashtra, approximately 200 kilometres east of Mumbai.

Pune is the 8th largest metropolitan city of India and one of the most fast growing cities in India.

From being known as a military cantonment, Pune has evolved into a dynamic city of academic,

cultural and economic importance, and to a business centre with the burgeoning software industry.

With the rapid urbanization, the city is facing lots of problems of social as well as physical

infrastructure. The city of Pune has a population of 2.8 million of which close to one million live

in slum settlements distributed throughout the city (Bapat and Agarwal, 2003). The average

decadal growth rate of population is 36.54% from 1951 to 2011. By 2030 Pune is expected to grow

into a megacity with approximately 10 million urban dwellers (Sankhe et al., 2010). The rapid

growth of the city is mainly attributed to the industrialization of Pune Municipality Corporation

(PMC) after 1960 and the expansion of the information technology (IT) industry in the last decade.

The rapid urbanization of Pune also resulted from growth in the educational hub and the growth

of subsidiary manufacturing sectors. This has contributed to massive migration from rural areas

to the city (Bhailume, 2012). The demographic facts are summarised in table 1.

Table 1. Demographic feature of Pune City

Area (in Square km) 729 sq km

Population 3402458
Population growth rate (compared to 2001 30.37%
level)
Population density (per Square kilometre) 10,000
Sex Ratio (females per 1000 males) 915
Literacy rate 86.15
Infant Mortality rate (per 1000) 24
Per capita Income 1.27 lakh per year
Work Participation Ratio 34.08%
Source: Census, 2011; Thorton 2012-13; PMC, 2017

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Pune ranks 145 for Quality of Living Ranking (2015) among 440 cities in the world. The city

ranked higher than Mumbai (ranked 152) and New Delhi (ranked 154) (PTI, 2015) for quality of

living. To meet the growing demands of its urban dwellers and to manage the appropriate physical

infrastructure of the city, Pune city administrators are implementing several measures to redesign

the urban agglomeration. Based on the need for urban development and the initiatives to solve the

urban sustainability problems, in 2015, the Indian government chose Pune to be part of the “100

Smart Cities” initiative. According to this initiative, the Indian central government will invest INR

100 crore ($15.3 million) per year per city for 5 years to help cities develop smart infrastructures,

such as electricity, housing, parking, sanitation, and transportation (TNN, 2015). Despite

developmental strategies, Pune is under constant threat with respect to water security, flooding

from excessive rainfall, poor air quality, earthquake, lack of affordable housing and disease

outbreak due to climate change.

In 2017, the Rockefeller Foundation chose Pune as part of its “100 Resilient Cities” (100RC)

initiative to build resilience along with three other cities in India — Surat, Chennai and Jaipur. The

100RC programme lists urbanisation, lack of adequate planning, globalisation and climate change

as the common problems these cities face. Cities in Asia-Pacific are rushing to meet minimum

standards in their infrastructure projects. In doing so, they aren’t considering resilience, which

leaves them undefended against shocks and stresses in the future and their newest, poorest citizens

pay a disproportionately high price,’ notes the 100RC research.

The PMC is undertaking a number of initiatives for sustainable development of the city, ranging

from waste management to solar micro-grids and slum settlement to planting trees (PMC, 2018).

The PMC has initiated an IT-empowered census for trees, which keeps track of the number of trees

in the city. PMC initiated the reallocation of 3800 households from 29 slum areas of the city in

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cooperation with the NGOs (Non-Governmental Organisation). Further, the PMC has adopted a

number of adaptive measures to improve waste management. In 2014, Pune aimed to become a

zero landfill city by using biogas plants to decompose organic waste and convert it into biogas

within one year, but the work is still in progress. These plants are processing 5 tons of waste in a

day and generate 375 units of electricity, which is enough for 250 streetlights (‘Lessons from two

cities’, 2014).

2.3. Methodology

The present study is based on the secondary and primary data collected on the city Pune. The

results of the data analysis are explained in three stages- first the identification of challenges,

secondly, the ranking of the challenges and at last the experience of the challenges with a special

focus on a specific sector such as transportation sector.

The experts were from different sectors either directly working or indirectly related to the smart

city and climate resilient actions such as academics, research, policymakers, NGOs, consultants,

contractors, advisors etc. PMC and Pune Smart City Development Corporation Limited

(PSCDCL) are the two key players in the city for forming the climate-smart resilience actions. The

stakeholders and different key personnel from these two institutions were interviewed thoroughly.

Based on the pre-study qualitative interaction with these experts and other stakeholders the study

formed the components and subcomponents of the challenges to be climate resilient for the smart

city in India (discussed in section 3.1). A questionnaire has been developed based on findings of a

qualitative pre-study, where experts and laypersons were interviewed about the challenges for a

smart city to be climate resilient. The details of the questionnaire are elaborated in the following

section. The finding from the data collected through the structured questionnaire mainly to

evaluate the ranking of the challenges and the priority challenges. In addition to that, the identified

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challenges are elaborated with the qualitative and quantitative secondary data collected from the

PMC and PSCDL in the context of the transportation sector of the Pune city (in section 4). The

choice of the transportation sector arises from the findings of the responses from the

questionnaires, as discussed in section 3.

2.3.1 Questionnaire

For this study, a questionnaire has been developed based on findings of a qualitative pre-study (in

2018), where experts and laypersons were interviewed about the challenges for a smart city to be

climate resilient. Before running the survey, the questionnaire was checked for comprehensibility,

length of interview and wording. It was an online survey using a renowned survey portal. The

questionnaire took 10-12 minutes to complete on an average with 22 questions. The questionnaire

could be made available on request to the reader.

At the beginning of the questionnaire, respondents' belongingness to the city (of Pune including

Pimpri-Chinchwad) has been validated, which helps in generating an informed response needed

for the objective of the case study. Pune is the main old city and the Pimpri-Chinchwad are

extensions of the city. The next part of the questionnaire deals with the role of the respondent in

the climate smart city action plan. Respondents have identified their most suitable role in the action

plan as per their percipience. Specific roles that they could choose are from- policy maker,

consultant, contractor, researchers, a responsible consumer, concerned citizen or facilitator

(Appendix 1). The next set of questions are on the level of knowledge about the Smart City Mission

of Government of India and the Climate Resilient Cities in India. The last question in this section

captures the perception of the respondents about the importance of incorporating climate-friendly

actions into the mission.

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The next part of the questionnaire assesse demographic characteristics (age, gender, education,

family income status). The fourth part of the questionnaire deals with the perception of the

challenges. This part has three subdivision. The first part of the challenges is on social & cultural

challenges. Social & cultural challenges include cultural-behavioural barrier towards a new

policy, action, and strategy, information fatigue for an elderly person or less-educated individuals,

response fatigue from the same, knowledge deficit, consumption convenience over consumption

savings, lack of autonomy in decision making, socio-political interference, Veblen effect and the

Bandwagon effect. The second part of the section is on the perception of the economic challenges.

Economic challenges include inappropriate pricing of the services, lack of indigenous associated

industries, an inappropriate business model for private entities, investment & price gap, incentives,

transaction cost, tax evasion and uneven distribution of funding. The next part is on institutional

and technical challenges which includes inter-operability, resource-skilled persons, spillover

effect, efficiency-rebound effect, cost of upgrading technologies, technical gap between

expectations and current solutions, conflicting interest of different stakeholders, lack of good

governance, political interference, complexity in policy and action plans, conflict between security

and interoperability, lack of demand-side management initiatives, lack of investment opportunities

and ‘non-essential luxurious approaches'. The last part of the questionnaire enquires about the

respondents' understanding in identifying the most critical sector amongst households, industry,

transport, and manufacturing, which operates in a climate resilient manner. The questionnaire also

includes an open comment box, in case the respondent would like to add anything else on the issue.

The findings related to the perceptions of these stakeholders from administering the questionnaire

are discussed in section 3 and the ground level challenges faced by the city of Pune for smart

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resilient climate actions in the transportation sector are discussed in section 4. Before that, the

sample characteristics are summarised in the following section.

2.4. Data collection and sample characteristics

A sample survey was conducted in the city Pune in the first quarter of the year 2019, to capture

the potential challenges to be climate resilient for a median Indian city. Almost 100 respondents

voluntarily participated in the survey. Survey data was collected through an online portal from

different stakeholders of the city development projects who are working with or beneficiary of the

development projects with a snowball sampling process. To avoid sampling biases, a rigorous data

cleaning process has been done. All responses were filtered according to the completeness,

speeding (all responses that were faster than 33.33% of the median time were excluded) and

consistent responses. All respondents, who gave single inconsistent answers on predefined item

pairs, which had the same content in a different node (positive or negative) were excluded. From

the total data set (N=107), 50% of the respondents were removed due to bad data quality. The

validated 50 data points are used for further study. The demographic characteristics of the validated

sample are shown in the following table.

Table 2. Demographic characteristics of the sample

Demographic Characteristics Percentage Demographic Characteristics Percentage

Area of Pune-Pimpri-
100% Below Graduation 0%
Educational

Living Chinchwad city area

Level

Female 40% Bachelors/ Under Graduation 20%

Gender

Male 60% Masters/ Post Graduation 60%

Others 0% Above Post Graduation 20%
below 18 Years 0% Less than 5000 INR 0%
Monthly Family

18-25 Years 4% 5001-10,000 INR 4%

Expenditure

26-32 Years 44% 10,001- 20,000 INR 17%

Age

33-45 Years 28% 20,001- 30,000 INR 17%

46-59 Years 24% 30,001-40,000 INR 21%
60 Years and above 0% 40,001 INR and above 42%
Data Source: Sample data

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All sample respondents are from the city area of Pune, Pimpri and Chinchwad. 60% of the

respondents are male and 40 % are female. All the respondents are of the working class aged

between 18-59 years. 60% of these working-class respondents are well educated with at least a

post-graduation degree. 20% are highly educated and 20% are graduates. This well-educated

working class is the strength of the study. Respondents are also from well to do families with

average monthly expenditure more than 40000 INR. More than 50% of the respondents are from

the urban middle class from 10000 to 40000 INR.

All perception items were evaluated on a 5 point Likert scale. Likert scales are commonly used to

measure perception, providing a range of responses to a given question or statement. This scale

was based on five possible options with 5 = ‘strongly agree’ and at the other extreme 1 = ‘strongly

disagree’. Likert scales fall within the ordinal level of measurement. Cohen et al.,2006 contended

that it is illegitimate to infer that the intensity of feeling between strongly disagree and disagree is

equivalent to the intensity of feeling between other consecutive categories on the Likert scale. The

legitimacy of assuming an interval scale for Likert type categories is an important issue because

the appropriate descriptive and inferential statistics differ for ordinal and interval variables and if

the wrong statistical technique is used, the researcher increases the chance of coming to a biased

conclusion about the significance of the research. Methodological and statistical texts are clear that

for ordinal data one should employ the geometric mean, median or mode as the measure of central

tendency because the arithmetical manipulations required to calculate the mean (and standard

deviation) are inappropriate for ordinal data, where the numbers generally represent verbal

statements. In addition, ordinal data may be described using frequencies or percentages of response

in each category.

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3. The Results- Challenges identified by the stakeholders

Scholars have long argued that to create climate resiliency in cities in developing countries like in

India is complex with the dual challenges of managing resources and creating infrastructure (Shaw

et al., 2009). Rapid urbanization creates significant pressure on the environment and basic required

social services (Cohen, 2006). Although the Indian city authorities are investing significant

resources and developing strategies for addressing the key challenges in the city, the city is still

facing several challenges to convert the strategies into actions. It is crucial to diagnose the critical

challenges facing the city that require urgent attention on the part of urban planners. At the first

stage, the identification of challenges from the pre-study qualitative stakeholders' interaction is

discussed. Then the relative ranking of the different types of challenges and their relative

importance are explained through the primary sample survey data with a structured questionnaire

in the following section.

3.1.Category of challenges

Based on the qualitative pre-study conducted in 2018 in Pune, primarily three types of challenges,

were identified, namely, economic, social & cultural, and institutional & technical challenges.

Scholars from different field identified that the most important factor of challenges is economic

factors (Keivani, 2010; Kearns and Paddison, 2000). For the individual consumer, the prime

concern is that the initial purchasing cost, as well as the operating costs (including market price,

installation cost and maintenance cost) of new services or technologies, are high enough (for

instance, the resilient smart LED lamps are 10 times more expensive as compared to the common

incandescent bulb). The existing incentives are not enough to motivate the usage of new resilient

services like solar roof-top energy sources for individual households. Even if a proper incentive is

available, the consumer prefers consumption convenience over consumption savings because of

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their myopic behaviours about consumption. Households are also not really ready to pay taxes for

the resilient services provided by the authority. The market economy is not also appropriate for

individual firms. The market returns are uncertain and not enough to cover the initial investment

required for climate resilient strategies at least for the short run. Firms are interested in developing

economically feasible solutions even if it does not completely conform to the action plans, but

there is an uneven distribution of money between research and implementation. Another set of

challenges are coming from the macro factors like associated industries are not sufficient,

inconsistent and immobile resources, lack of investment availability, inappropriate business

models for the industry. As the services are new in nature, the business model under the PPP model

is not well structured. There is a trade-off between investment opportunity for infrastructure

development and investment for resilient actions as the return from infrastructure development

could be realized in the short run; whereas the return and social benefits from the resilience actions

could be only realized in future.

The most complex set of challenges arise from end-users socio-cultural attributes. Cultural &

behavioural barriers to adopt new practices are significant in society. Awareness and adequate

information about the smart resilient action plans and strategies are limited. There is enough

response fatigue as well, especially from elderly stakeholders. The role of NGO in creating social

aspect and social awareness is important for creating climate resiliency. The role of NGOs creating

awareness and supporting the implementation activities are limited to selective areas (mostly in

slum areas). The fact is that there is knowledge deficiency in the middle to high-income households

as well. The middle to high-income households is important as they are the bulk consumer

compared to the low and slum-households. Therefore, the existing level of knowledge

dissemination is inappropriate. Individual are also myopic about the development program and

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financial return from the action plans as they believe that the action plans are not practically

implemented by the authority. Most of the end-users feel that the current strategies are ‘non-

essential, luxurious’ smart approach. Most of the individual make their consumption decision

based on either bandwagon effect or community decision. Political interference in the program

implementation is highly biased and only active during the election cycle. Moreover, the plans

and/ or strategies are not compatible with the changing modern lifestyle of the city.

Another important source of challenges is the availability of improved technology and skilled

resource persons to maintain improved technology at a lower cost. On the other side, the

availability of improved technology will create a spill-over effect on the economy. The

stakeholders identified that there is a gap between the required expected technologies for climatic

solutions and currently available technologies. Individual aspects are the most critical challenges

identified by the stakeholders. Apart from individual stakeholders, local governments have the

most crucial role in addressing these challenges. The lack of power and authority often hinder local

government from implementing and sustaining urban development. The structure of governance

and institutional design limits the power given to the decision makers. For example, in the city,

the municipality mayor is elected for a term of 15 months only, which is not enough time to design

and implement significant plans for urban development and growth. Lack of knowledge and

expertise to take a new responsibility and initiatives and accommodating new needs create another

stage of a hindrance. The conflicting interest between different stakeholders and decision makers

from the governing body is another source of challenges. There is also a need for good governance

and zero corruption environment for multi-layered complex strategies and actions. Terms and

conditions for strategies, programs and action plans is complex to implement, otherwise, naturally,

the implementation processes become slow. Investment conditions are not currently easy to

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 Working Paper No: 831
Indian Institute of Management Calcutta

comprehend. The more crucial issue is the safety and security of private data. The conflict between

security and interoperability of information may be controlled by the government with more

accuracy. The local governing body is currently not generating appropriate awareness and demand

management programs to create a proper market economy. We now discuss the findings from our

primary study in the next section.

3.2.Ranking of Challenges

In the sample data, the representative stakeholder of the city identified that institutional challenges

are the topmost hindrance of the system to be climate resilient for the city followed by the

economic challenges (Fig 1). Social & cultural challenges are the least important compared to the

above-mentioned category.

The analysis shows that throughout the list of challenges the modal response is in favour of the

statements that the challenges are significantly affecting the smart cities to be climate resilient.

Although the general consensus is the same that the different stakeholders value the challenges

differently (Fig 2). The researchers and academicians, working on urban development perceived

that economic challenges are the most important component among the challenges. On the other

hand, policymakers and those on the governing bodies of urban development institutions perceived

that economic challenges are the least important factor. Contractors and consultants of

development projects also believed that economic challenges are the least important, and

institutional and technical challenges are the most important component of challenges. Within each

of these broad components, there are subcomponents that are also ranked relatively (Appendix 2).

The first three important components of institutional & technical challenges are coming from

multi-level governance, lack of demand-side management schemes and uncomprehensive plans

and strategies. Similarly, the relative ranking of the sub-components for other types of challenges

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Indian Institute of Management Calcutta

is provided in the appendix 2 as well. However, this relative importance between different

challenges are indicative only, as the number of respondents are small.

Fig 1. Mean-score of the challenges

Institutional & Technical Challenges

Economic Challenges

Social & Cultural Challenges

0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50

Source: Survey Data

Fig 2. Stakeholder-wise priority factor of challenges

3.5
3
2.5
2
1.5
1
0.5
0
Policy Maker and Consumer or Concern Contractor and Consultant Researchers and
Governing Body Citizen (including NGOs) academicians

Social & Cultural Challenges Economic Challenges Institutional & Technical Challenges

Source: Survey Data

In addition, the study attempted to check whether the awareness about climate resiliency and smart

cities affects people's perception about the challenges facing Pune. It appears that awareness did

not affect people’s perception of challenges. The ranking of the components of the challenges is

identical for those who are familiar with the concepts, somewhat familiar with the concept and not

familiar with the concept (Fig 3 & 4).

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Indian Institute of Management Calcutta

In general, 93% of the respondents perceived that climate resiliency is the top priority for urban

development (Fig 5). 100% of the policy maker and government officials believe that the climate

resiliency is the top priority but not the most important as they identified that the poverty and

access to basic services like health, education are the most important sector to intervene in any

Indian cities. 50% of the contractor and consultant, on the other hand, believe that climate

resiliency is not an important sector to intervene. This is because primarily they don’t readily

realize the monetary benefits from the resiliency actions and secondly for them, infrastructure

development is the most tangible and profitable venture. All the researchers and academicians

working on urban development issues believe that resilient climate actions are crucial for urban

development. 93% of consumers are in favour of resilient actions as they are the direct beneficiary

of the actions.

The relative importance of the different types of challenges is discussed in this section. However,

these are indicative only and therefore there is a need to study how these challenges interplay in

the reality from the secondary source of information from PMC and PSCDCL. The study explores

the function of the challenges for climate resilient actions in the smart city Pune in the next section,

with a special focus on transportation sector as the transportation sector is identified as the most

critical sector (appendix 3).

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 Working Paper No: 831
Indian Institute of Management Calcutta

Fig 3. Ranking of the Challenges Fig 4. Ranking of the Challenges

according to the familiarity with the according to the familiarity with the
concept Climate Resiliency concept Smart City
5.0
4.0 4.5
3.5 4.0
3.0 3.5
2.5 3.0
2.0 2.5
1.5 3.1 3.4 2.0 3.9
2.8
2.4 2.6 2.7 2.4 1.5
3.5
1.0 2.1 2.2 2.8 2.6
1.0 2.1 2.1
2.6 2.3 2.6
0.5
0.5
0.0
Familiar Somewhat Not Familiar 0.0
Familiar Familiar Somewhat Not Familiar
Familiar
Social & Cultural Challenges Social & Cultural Challenges
Economic Challenges Economic Challenges
Institutional & Technical Challenges Institutional & Technical Challenges

Fig 5. Consessus about the incorporation of climate resilience

in smart city development
All 43 50 7
Researchers and academicians 63 38
Contractor and Consultant (including NGOs) 50 50
Consumer or Concern Citizen 43 50 7
Policy Maker and Governing Body 100

0 20 40 60 80 100 120

The most important priority A top priority, but not the most important
Not very important Not important at all

Source: Survey Data

4. Experience of challenges in smart-resilient action: Transportation sector, Pune

The respondents (45% of the respondent) from the primary sample survey identified that the

transportation sector as the most critical and crucial sector for climate resiliency (Appendix 3). It

is critical because it accounts for significant environmental and climatic hazards in the city. It is

crucial to intervene in this sector because it directly hits the citizens and the solution of transport

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 Working Paper No: 831
Indian Institute of Management Calcutta

related issues are complex enough. In 2009–2010, due to the increase in the number of vehicles,

air pollution levels determined by measuring Suspended Particulate Matter (SPM) and Respirable

Suspended Particulate Matter (RSPM), in Pune were higher than national standards. The rapid

urbanisation has led to increased vehicular traffic, increased usage of diesel generators, increased

construction activities and increased road dust, all of which contribute to transport-related air

pollution in Pune. In 2013, Pune's carbon footprint was approximately 4.7 million tons (DNA,

2013), with the transportation sector being a major contributor. In the Pune city, residents rely

heavily on a limited transport network, with a few choices of route or safe and affordable modes.

Some areas of the city are still lack of any public transport.

Inclusive multi-modal transport networks allow safe and affordable travel between all

neighbourhoods and key facilities across the city. Multi-modal systems incorporate redundancy

and flexibility by providing alternative options in the event of failure or surges in demand. Robust

and redundant ICT services could enhance safe communication and access to information systems,

including the coordination of emergency services. Specific indicators those underpin this goal

include the promotion of non-motorised transport system and public transport with E-buses and

improved traffic control systems. Reliable communications and mobility create daily connectivity

between places, people and services. This fosters a positive environment for every day working

and living, builds social cohesion, and also supports rapid mass evacuation and widespread

communication during emergencies. A combination of transport links and the provision of ICT are

fundamental to connectivity in contemporary cities. Transport links enable physical mobility and

should be characterised by a wide coverage of the city, as well as good service quality and

affordability. Good infrastructure capacity, safety and efficiency are essential for the effective

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Indian Institute of Management Calcutta

operation of transport networks. There are indirect economic positive externalities also, such as

facilitating trade.

The PMC is undertaking a number of initiatives for sustainable development of the city, including

a multi-modal transport system which is smart as well as resilient in nature for the city. The smart

city mission identified diverse and affordable multi-modal transport systems action plans including

road widening, procuring 100 electric buses, redesigning of streets, smart parking, retrofitting

footpaths, introducing app based bicycles and e-rickshaw, developing non-motorised street,

expanding BRT (Bus Rapid Transit) systems and creating total smart parking and traffic modelling

systems for the urban transport system. The improved communication technology will also create

a support system for an adaptive traffic control system, bus system items, command control centre

and intelligent road management. The city Pune initiated bi-cycle use for last-mile travel by

procuring more than 4000 bicycles. The preliminary descriptive responses of the stakeholders

communicated that the bicycles are in use but the uptake rate is very low due to behavioural issues.

The practice of using the environmental friendly bicycle instead of the auto rickshaw for last mile

travel is still not as popular. Only the youth are using these services because they are familiar with

its applications.

Introducing electric buses for public transport is still in the implementation stage due to technical

challenges. The lack of charging stations for electric buses is the main technical issue for this

initiative. Apart from that the skilled technician for operating and maintaining the electric buses

are scarce in the city. The expansion of the BRT network is also in the pen & paper stage as it

needs a large amount of investment, and currently, the investment priority is with the development

of the metro network through-out the city. So the investment priority shifted from BRT system to

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Indian Institute of Management Calcutta

the Metro network. Also, the necessity for an expanded BRT system is now weak with a proper

metro network.

In Pune, for multi-modal transport, there already exists CNG buses and a BRT system; a metro

network is in progress, and yet the city is procuring E-buses. The inclusion of the new transport

mode may cause disruption in the transportation system as well as in the administrative process.

The concern is the limited resources including corpus amount, skilled human resources and

technologies which are to be used in priority areas to meet the needs of citizens. Most of the smart

resilient action plans are just replications of successful projects in large cities like Delhi,

Bangalore, Ahmedabad etc. which may not be appropriate for small and/or developing cities.

5. Summary and Conclusion

The ‘Smart city’ programs are conceptualised on the basis of sustainable development, which in

turn encompasses climate resiliency. Thus, both the climate resilient city and smart city are inter-

connected urban development strategies. The opportunity for transformational change under these

urban development strategies is high. The action plans of the mission include some of the

embedded climate resilient actions. However, lack of synergy between the practice, ground level

realities, research and action plans are undermining some of the embedded resilient actions in the

smart city.

The present study is based on a case study from a city named Pune in Maharashtra, India, which

is identified as a climate resilient and smart city. Based on the participation theory of urban

development the stakeholders' perception about the challenges has been evaluated. The result

shows there are broadly three types of challenges (a) social & cultural challenges (b) economic

challenges and (c) institutional & technical challenges. The representative stakeholders of the city

identified that institutional and technical challenges as the topmost hindrance of the system to be

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Indian Institute of Management Calcutta

climate resilient for the city followed by the economic challenges. Accordingly, it is recommended

that the government should strengthen key institutions and policy implementation through multi-

level governance which will ensure the efficacy of action plans. The social and cultural challenges

appear to be the least important set of challenges to be worried about. Developing an appropriate

market economy for resilient action plans is the most crucial economic challenge, as derived from

this study. Among all other identified challenges, few worth mentioning are the transaction cost,

including installation costs, which is much higher for an average end-user. For end-users, the

economic incentives to alter their non-resilient consumption pattern are not appropriately designed

in most of the cases. For the manufacturing and industrial sector, the market returns are not enough

to cover the investments at least for the short-run and for the long run the returns are uncertain.

The dynamic tariff for resilient services should be designed such that competitive returns from the

new initiatives are accounted for.

For a holistic policy like the smart city mission, experts from different fields realized that a

comprehensive understanding of the mission and the resilient action plan across all stakeholders

is an urgent need to arrive at a common framework for the cities. Lack of identification of the

needs, proper dissemination of information and inappropriate understanding may adversely affect

the fundamental objective of the mission to create resiliency in the city. In short, Indian smart

cities could be climate resilient through a systematic review of the mission with revisions of the

embedded action plans for climate resiliency. The identification of the challenges and their relative

importance will help the planner revise and/or recreate the mission of being sustainable and to

achieve a low carbon growth path. Further, this should be looked like an opportunity to improve

the design and operations of resilient actions and/ or strategies and integrate them into the smart

city mission within a broad urban development policy context.

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 Working Paper No: 831
Indian Institute of Management Calcutta

Appendix 1: Stakeholders distribution in the survey

Stakeholder Stake in Climate Resiliency Stake in Smart City Process Representatio
Category Process n (in %)
Policy Maker Policymaking, Rules and Policymaking, Rules and 14
and regulation making, coordinating regulation making, coordinating
Governing the conflicting stakeholders like the conflicting stakeholders like
Body private industrial units and poor private industrial units and poor
civilians civilians
Consumer or Using the action plans, realising Beneficiary 52
Concern the pros & cons of the action
Citizen plans,
Contractor Implementing or facilitating the Implementing or facilitating the 7
and action plan action plan
Consultant
(including
NGOs)
Researchers Academic modelling and policy Academic modelling and policy 28
and advisory advisory
academicians

26
 The manuscript for INSEE Conference, 2019
Subtheme: Building Climate Resilience
By Debalina Chakravarty, IIM C

Appendix 2. Components of the Challenges

Economic Challenges Social & Cultural Challenges Institutional & Technical

Lack of resources Challlenges
for research and… Election agenda
tax for climatic Multi-level
Non- aligned current
actions. governmental…
trend and changing…
Investment trade- Low political Confliting interest
off intervention
investor
NGO is crucial at unfriendly actions.
Incentive issues
implementation… Insufficienct
profitability Strict rules and demand for…
issues regulations for… Public-private
Flexibility to Myopic attitude partnership…
develop towards program… Gap between
Lack of Non-realistic technological…
indigenous… implementation… Advanced
technology
Consumption Collective climate
lack of
convenience… decisions
expert/skilled…
High initial cost of Time lag in response
technologies Interoperability
Inequipped Cultural change uncomprehensive
economic system towards CR plans and…
0.00%50.00%
100.00%
150.00% 0.00% 50.00% 100.00%150.00% 0.00% 50.00%100.00%
150.00%

Strongly Agree Strongly Agree Strongly Agree

Agree Agree Agree
Neither Agree nor Disagree Neither Agree nor Disagree Neither Agree nor Disagree
Disagree Disagree Disagree

Source: Survey Data

27
Appendix 3.

Perception on the critical sectorto be climate

resilient in smart city
120

100
6
4

80
30

60
5

40
45

20

10
0

Manufacturing sector Transportation sector Industrial

Residential Sector Governance Political

28
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