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Analysis of short‐run domestic water supply transfers under uncertainty
Author(s) -
Smith Mark Griffin,
Marin Carlos M.
Publication year - 1993
Publication title -
water resources research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.863
H-Index - 217
eISSN - 1944-7973
pISSN - 0043-1397
DOI - 10.1029/93wr00183
Subject(s) - water supply , incentive , reliability (semiconductor) , maximization , work (physics) , welfare , environmental economics , economics , water resource management , business , natural resource economics , environmental science , environmental engineering , microeconomics , engineering , mechanical engineering , market economy , power (physics) , physics , quantum mechanics
From the perspective of water supply managers, supply reliability can be more important than economic benefit. This study uses four alternative models of water supply allocation to examine issues of reliability and welfare maximization arising from short‐run inter‐city water transfers. The results of this work show that the economic gain from water transfers may be relatively small. However, water transfers can significantly improve system reliability, thus providing strong incentives for transfer arrangements among water authorities. We apply the models in a case study on the island of Cyprus.