 Water Network Design Using a Multiobjective Real Options FrameworkJoão Marques, Maria Cunha, Dragan Savić and Orazio Giustolisi Journal of Optimization, 2017, vol. 2017, 1-13 Abstract: Water distribution networks (WDNs) are an essential element of urban infrastructure. To achieve a good level of performance, the traditional design of WDNs based on expected future conditions should be replaced by a flexible design, using real options (ROs), that accounts for uncertainty by taking a broader view of possible future options. This work proposes a multiobjective ROs framework that sets out to reduce costs, minimize hydraulic pressure deficiency, and a third objective for minimizing carbon emissions. A multiobjective simulated annealing algorithm is used to identify the Pareto-optimal solutions, thus enabling a trade-off analysis between solutions. These trade-offs show that a low pressure deficit solution is achieved by increasing investment at a much faster rate after a certain pressure deficit threshold (60 m). Also, the pressure deficits can only be reduced by increasing carbon emissions. Finally, this work also emphasizes the importance of including carbon emissions as a specific objective by comparing the results of the proposed model and another one that did not cover the environmental objective. The results show that it is possible to reduce CO 2 for the same level of capital expenditure or the same level of network pressure deficits if carbon emissions are minimized in the optimization process. Date: 2017 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:hin:jjopti:4373952 DOI: 10.1155/2017/4373952 Access Statistics for this article More articles in Journal of Optimization from Hindawi |
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