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Design of Efficient Water Pricing Policies Integrating Basinwide Resource Opportunity Costs

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Design of Efficient Water Pricing Policies Integrating Basinwide Resource Opportunity Costs

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dc.contributor.author Pulido-Velazquez, M. es_ES
dc.contributor.author Álvarez Mendiola, Eduardo es_ES
dc.contributor.author Andreu Álvarez, Joaquín es_ES
dc.date.accessioned 2014-11-17T10:43:39Z
dc.date.available 2014-11-17T10:43:39Z
dc.date.issued 2013-09
dc.identifier.issn 0733-9496
dc.identifier.uri http://hdl.handle.net/10251/44264
dc.description.abstract By ignoring the opportunity cost of water use, water is undervalued, which can lead to significant errors in investments and water allocation decisions. The marginal resource opportunity cost (MROC) varies in time and space, as resource availability, demands, and users’ WTP vary. This spatial and temporal variability can only be captured by basinwide hydro-economic models integrating water demands and environmental requirements, resources, infrastructure, and operational and institutional restrictions. This paper presents a method for the simulation of water pricing policies linked to water availability, and the design of efficient pricing policies that incorporate the basinwide marginal value of water. Two approaches were applied: priority-based simulation and economic optimization. The improvement in economic efficiency was assessed by comparing the results from simulation of the current system operation and the pricing schedule. The difference between the benefits for the simulated current management and the upper bound benefits from optimization indicates the maximum gap that could be bridged with pricing. In the application to a synthetic case, a storage-dependent step pricing schedule derived from average MROC values led to benefits that capture 80% of the gap of net benefits between management without pricing and the economically optimal management. Different pricing policies were tested, depending not only on reservoir storage but also on previous inflows. The results show that the method is useful for designing pricing policies that enhance the economic benefits, leading to more efficient resource allocations over time and across the competing uses. es_ES
dc.description.sponsorship This study has been partially funded by the EU 6th FP project AQUAMONEY (SSPI-022723), the 7th FP GENESIS project (226536), and SAWARES (Plan Nacional I+D+i 2008-2011, CGL2009-13238-C02-01 and C02-02) and SCARCE (Consolider-Ingenio 2010 CSD2009-00065) of the Spanish Ministry of Economy and Competitiveness. en_EN
dc.language Inglés es_ES
dc.publisher American Society of Civil Engineers es_ES
dc.relation EU SSPI-022723 226536 CGL2009-13238-C02-01 CGL2009-13238-C02-02 es_ES
dc.relation Spanish Ministry of Economy and Competitiveness CSD2009-00065 es_ES
dc.relation.ispartof Journal of Water Resources Planning and Management es_ES
dc.rights Reserva de todos los derechos es_ES
dc.subject Water management es_ES
dc.subject Pricing es_ES
dc.subject River basins es_ES
dc.subject Optimization es_ES
dc.subject Water shortage es_ES
dc.subject Costs es_ES
dc.subject.classification INGENIERIA HIDRAULICA es_ES
dc.title Design of Efficient Water Pricing Policies Integrating Basinwide Resource Opportunity Costs es_ES
dc.type Artículo es_ES
dc.identifier.doi 10.1061/(ASCE)WR.1943-5452.0000262
dc.rights.accessRights Abierto es_ES
dc.contributor.affiliation Universitat Politècnica de València. Departamento de Ingeniería Hidráulica y Medio Ambiente - Departament d'Enginyeria Hidràulica i Medi Ambient es_ES
dc.description.bibliographicCitation Pulido-Velazquez, M.; Álvarez Mendiola, E.; Andreu Álvarez, J. (2013). Design of Efficient Water Pricing Policies Integrating Basinwide Resource Opportunity Costs. Journal of Water Resources Planning and Management. 139(5):583-592. doi:10.1061/(ASCE)WR.1943-5452.0000262 es_ES
dc.description.accrualMethod S es_ES
dc.relation.publisherversion http://dx.doi.org/10.1061/(ASCE)WR.1943-5452.0000262 es_ES
dc.description.upvformatpinicio 583 es_ES
dc.description.upvformatpfin 592 es_ES
dc.type.version info:eu-repo/semantics/publishedVersion es_ES
dc.description.volume 139 es_ES
dc.description.issue 5 es_ES
dc.relation.senia 252546


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