Urban water management: optimal price and investment policy under climate variability*

Hughes, Neal; Hafi, Ahmed; Goesch, Tim

doi:10.1111/j.1467-8489.2007.00446.x

Cited by 33 publications

(28 citation statements)

References 12 publications

(18 reference statements)

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“…Existing models cannot adequately assess a range of water governance alternatives (Barker et al, 2010) as they focus on meeting set levels of demand under engineering constraints, utilising supply-side models (Hughes et al, 2009). Hughes (2008) and Grafton and Ward (2008) allow demand to respond to prices through the use of endogenous demand curves.…”

Section: Effectively Modelling the Socio-environmental Systemmentioning

confidence: 99%

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Paradigm shift to enhanced water supply planning through augmented grids, scarcity pricing and adaptive factory water: A system dynamics approach

Sahin

Siems

Stewart

et al. 2016

Environmental Modelling & Software

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a b s t r a c tThis paper details a system dynamics model developed to simulate proposed changes to water governance through the integration of supply, demand and asset management processes. To effectively accomplish this, interconnected feedback loops in tariff structures, demand levels and financing capacity are included in the model design, representing the first comprehensive life-cycle modelling of potable water systems. A number of scenarios were applied to Australia's populated South-east Queensland region, demonstrating that introducing temporary drought pricing (i.e. progressive water prices set inverse with availability), in conjunction with supply augmentation through rain-independent sources, is capable of efficiently providing water security in the future. Modelling demonstrated that this alternative tariff structure reduced demand in scarcity periods thereby preserving supply, whilst revenues are maintained to build new water supply infrastructure. In addition to exploring alternative tariffs, the potential benefits of using adaptive pressure-retarded osmosis desalination plants for both potable water and power generation was explored. This operation of these plants for power production, when they would otherwise be idle, shows promise in reducing their net energy and carbon footprints. Stakeholders in industry, government and academia were engaged in model development and validation. The constructed model displays how water resource systems can be reorganised to cope with systemic change and uncertainty.

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Section: Effectively Modelling the Socio-environmental Systemmentioning

confidence: 99%

“…Hughes (2008) and Grafton and Ward (2008) allow demand to respond to prices through the use of endogenous demand curves.…”

Section: Effectively Modelling the Socio-environmental Systemmentioning

confidence: 99%

Paradigm shift to enhanced water supply planning through augmented grids, scarcity pricing and adaptive factory water: A system dynamics approach

Sahin

Siems

Stewart

et al. 2016

Environmental Modelling & Software

View full text Add to dashboard Cite

show abstract

“…While previous studies analyzed the influence of penalty and subsidy on the strategies of governments and polluting firms, they failed to consider the adjustable price policy in the regulatory game model. In the field of water supply management, there are many researches indicating that changes in water prices affect decision-making of water companies (Hughes et al, 2009).…”

Section: Game Model Developmentmentioning

confidence: 99%

Key stakeholders' optimal strategy for upgrading water supply facilities in China

Jia

et al. 2014

Water Policy

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It is urgent to upgrade, replace and improve water supply facilities in China. Penalty, subsidy and water price increase are often considered the main policy tools for encouraging water supply companies to upgrade their production facilities. However, the implementation of upgrading water supply facilities is being confronted with some uncertainties because of the conflicts of involved stakeholders. This study develops a game model between municipal government and a water company to analyze their conflicts of interests and optimize the strategy for upgrading water supply facilities. Empirical analyses from three Chinese urban water companies are presented. Using theoretical and numerical analysis, the effects of penalty, subsidy and water price increase on strategies of upgrading water supply facilities were obtained. The main findings are that water price and penalty are the effective policies to optimize key stakeholders' strategies, while subsidy policy is not useful. The conclusion has important policy implications for ensuring water supply safety and reliability.

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“…Firstly, it provides the necessary security of supply through demand-side management when confronted by seasonal variations in rainfall, and secondly, it provides a mechanism to defer capital investments through demand reduction mechanisms [42,85]. These include scarcity based pricing and education and awareness programs [76,[108][109][110]. Higher resolution metering data would provide the utility with insights into how customers are using water and therefore be in a position to target specific discretionary end uses, such as outdoor use, with the aim of changing consumer water conservation and consumption attitudes and behaviours [111,112].…”

Section: Driversmentioning

confidence: 99%

Intelligent Metering for Urban Water: A Review

Boyle

Giurco

Mukheibir

et al. 2013

Water

177

128

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This paper reviews the drivers, development and global deployment of intelligent water metering in the urban context. Recognising that intelligent metering (or smart metering) has the potential to revolutionise customer engagement and management of urban water by utilities, this paper provides a summary of the knowledge-base for researchers and industry practitioners to ensure that the technology fosters sustainable urban water management. To date, roll-outs of intelligent metering have been driven by the desire for increased data regarding time of use and end-use (such as use by shower, toilet, garden, etc.) as well as by the ability of the technology to reduce labour costs for meter reading. Technology development in the water sector generally lags that seen in the electricity sector. In the coming decade, the deployment of intelligent water metering will transition from being predominantly "pilot or demonstration scale" with the occasional city-wide roll-out, to broader mainstream implementation. This means that issues which have hitherto received little focus must now be addressed, namely: the role of real-time data in customer engagement and demand management; data ownership, sharing and privacy; technical data management and infrastructure security, utility workforce skills; and costs and benefits of implementation.

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Urban water management: optimal price and investment policy under climate variability*

Cited by 33 publications

References 12 publications

Paradigm shift to enhanced water supply planning through augmented grids, scarcity pricing and adaptive factory water: A system dynamics approach

Paradigm shift to enhanced water supply planning through augmented grids, scarcity pricing and adaptive factory water: A system dynamics approach

Key stakeholders' optimal strategy for upgrading water supply facilities in China

Intelligent Metering for Urban Water: A Review

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