Valuing Water Supply Reliability with Sensitivity Analysis

Steven Buck and Mehdi Nemati

No 252826, 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama from Southern Agricultural Economics Association

Abstract: The purpose of this paper is to calculate the expected reliability benefits of alternative water supplies that are less vulnerable to disruption than the current composition of supplies, especially those regions which rely on imported surface water. Expected reliability benefits are measured using estimates of welfare losses under various levels of supply disruption, the probability of each level disruption, and on consumption forecasts over the life of proposed alternative supplies. TO consider uncertainty in reliability benefits, we run sensitivity analyses to value reliability under different discount rates, the elasticities of demand, water supply disruption levels, and corresponding probability distributions of disruption.

Keywords: Community/Rural/Urban Development; Environmental Economics and Policy; Public Economics; Resource/Energy Economics and Policy (search for similar items in EconPapers)
Pages: 19
Date: 2017
New Economics Papers: this item is included in nep-agr and nep-reg
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Persistent link: https://EconPapers.repec.org/RePEc:ags:saea17:252826

DOI: 10.22004/ag.econ.252826

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