Capacity Choice of Dams Under Rivalry Use and Externalities

Houba, Harold; Pham, Kim; Zhu, Xueqin

doi:10.2139/ssrn.2516751

Cited by 3 publications

(2 citation statements)

References 6 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…As water becomes scarcer, many regions face internal and international conflicts over shared water resource allocation [1][2][3]. Transboundary conflicts over shared resources can impact both shared international and interstate water bodies.…”

Section: Introductionmentioning

confidence: 99%

Water Allocation Using the Bankruptcy Model: A Case Study of the Missouri River

Wickramage

Roberts

Hearne

2020

Water

View full text Add to dashboard Cite

This research applies cooperative game theory—specifically, the bankruptcy model—to address conflicts arising from the scarcity of water resources shared by multiple agents. This case study addresses potential outcomes of five allocation rules applied to the apportionment of water between two agents in the Missouri River. Currently, there is no interstate compact to apportion Missouri River and frequent disputes between upstream and downstream states occur. Upstream states favor managing reservoir water levels to support reservoir recreation and downstream states want water for the downstream navigation channel. The five allocation rules studied are (1) Proportional Sharing, (2) Constrained Equal Awards, (3) Constrained Equal Losses, (4) Sequential Sharing based on Proportional Sharing, and (5) a proposed Modified Constrained Equal Awards rule. The results of the analysis of apportionment during four dry years in the 2000s show that the best approaches are the proposed Modified Constrained Equal Awards Rule and the Proportional Sharing Rule.

show abstract

Section: Introductionmentioning

confidence: 99%

Water Allocation Using the Bankruptcy Model: A Case Study of the Missouri River

Wickramage

Roberts

Hearne

2020

Water

View full text Add to dashboard Cite

show abstract

“…This paper connects the literature about water-infrastructure investment, water-inventory management, and conservation-technology adoption. To our knowledge, our two-period, stochastic model is the first capacity-choice model for water projects in literature (e.g., Miltz and White, 1987;Tsur, 1990;Fisher and Rubio, 1997;Schoengold and Zilberman, 2007;Haddad, 2011;Houba et al, 2014;Xie and Zilberman, 2014) to incorporate water-use efficiency and stochastically, dynamic control of water inventories, which allows us to answer the two questions. We are therefore the first to identify water-use efficiency as a potential factor affecting water-storage investment.…”

Section: Introductionmentioning

confidence: 99%

Water Storage Capacity versus Water Use Efficiency: Substitutes or Complements?

Xie¹,

Zilberman²

2018

Journal of the Association of Environmental and Resource Econom

View full text Add to dashboard Cite

We investigate the economic relation between two common approaches to tackling water scarcity and adapting to climate change, namely expanding water-storage capacities and improving water-use efficiency. We build, analyze, and extend a simple model for capacity choices of dams, incorporating stochastically dynamic control of water inventories and efficiency in water use. We show that expanding water-storage capacities could encourage water users to improve water-use efficiency and improving water-use efficiency could increase optimal dam sizes even if water-use efficiency improvement decreases the water demand. The possibility of complementarity is numerically illustrated by an empirical example of the California State Water Project. Our analysis implies that, if complementarity holds, resources should be distributed in a balanced way between water-storage expansions and water-use efficiency improvement instead of being concentrated on one side with the other side being ignored.

show abstract

Theoretical implications of institutional, environmental, and technological changes for capacity choices of water projects

Xie

Zilberman

2016

Water Resources and Economics

View full text Add to dashboard Cite

Capacity Choice of Dams Under Rivalry Use and Externalities

Cited by 3 publications

References 6 publications

Water Allocation Using the Bankruptcy Model: A Case Study of the Missouri River

Water Allocation Using the Bankruptcy Model: A Case Study of the Missouri River

Water Storage Capacity versus Water Use Efficiency: Substitutes or Complements?

Theoretical implications of institutional, environmental, and technological changes for capacity choices of water projects

Contact Info

Product

Resources

About