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Investment sequencing, allocation, and learning in the design of water resources systems: An empirical application
Author(s) -
Rausser Gordon C.,
Willis Cleve E.
Publication year - 1976
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/wr012i003p00317
Subject(s) - exploit , robustness (evolution) , water resources , capital investment , investment (military) , computer science , environmental economics , resource allocation , empirical research , operations research , business , economics , engineering , mathematics , finance , ecology , computer network , biochemistry , chemistry , statistics , computer security , biology , politics , political science , law , gene
Four of the more important unresolved problems in the design of water resources systems involve a determination of methods to deal with technological progress (e.g., new desalting processes), availability of water from more than a single supply source, the rate of investment in the capital complex employed to exploit the resource along with the allocation of water once the capital complex is in place, and price sensitive demands for water. The importance of these issues is demonstrated, and a decision framework is advanced which formally incorporates each along with a new technique for solving large‐scale investment‐sequencing and water allocation problems. The robustness and convergence properties are formally demonstrated. Finally, the framework is applied to an empirical situation in California with rather encouraging results.