In a porous material, both the pressure drop across a bubble and its speed are nonlinear functions of the fluid velocity. Nonlinear dynamics of bubbles in turn affect the macroscopic hydraulic conductivity, and thus the fluid velocity. We treat a porous medium as a network of tubes and combine critical path analysis with pore-scale results to predict the effects of bubble dynamics on the macroscopic hydraulic conductivity and bubble density. Critical path analysis uses percolation theory to find the dominant (approximately) one-dimensional flow paths. We find that in steady state, along percolating pathways, bubble density decreases with increasing fluid velocity, and bubble density is thus smallest in the smallest (critical) tubes. We find that the hydraulic conductivity increases monotonically with increasing capillary number up to Ca similar to 10(-2), but may decrease for larger capillary numbers due to the relative decrease of bubble density in the critical pores. We also identify processes that can provide a positive feedback between bubble density and fluid flow along the critical paths. The feedback amplifies statistical fluctuations in the density of bubbles, producing fluctuations in the hydraulic conductivity.