FINANCIAL AND ECONOMIC APPRAISAL OF WATER SUPPLY DESALINATION TECHNOLOGIES AND REUSE INITIATIVES:INTEGRATING MODERN PORTFOLIO THEORY INTO STRATEGIC WATER RESOURCE ALLOCATION

Mikhail Miklyaev, Alan S. Wyatt (), Ridha Drebika (), Owotomiwa (Christiana) Olubamiro () and Glenn Jenkins ()
Additional contact information
Alan S. Wyatt: Cambridge Resources International Inc.
Ridha Drebika: Cambridge Resources International Inc.
Owotomiwa (Christiana) Olubamiro: Cambridge Resources International Inc.

Development Discussion Papers from JDI Executive Programs

Abstract: The study delves into the economic valuation of water supply projects, assessing not just traditional cost components but also the broader implications of non-market externalities. By employing contingent valuation, it gauges the public's willingness to pay for investment in the reliability and quality of water services. Furthermore, the approach includes a detailed examination of water supply variability, using statistical methods to model and predict the stability of different water sources. An application of the analytical framework is carried out for Morocco. In this study Modern Portfolio Theory (MPT) is applied to water resource management. It forges a nuanced balance between ensuring a reliable water supply and maintaining economic efficiency in water projects. At a time when water scarcity and climate uncertainty pose complex challenges, the use of the Simulation and Portfolio Optimization Tool (SPOT) developed in this study provides a sophisticated framework for the evaluation and selection of water source portfolios. SPOT equips policymakers with a robust tool for developing water management strategies that are both adaptable to changing environmental conditions and grounded in economic reality. The insights provided by this research contribute to the strategic planning and economic efficiency in the design of water systems, highlighting the critical intersections of cost, reliability, and supply variability. It marks a pragmatic progression in resource management, aiming to align the stewardship of water resources with both environmental sustainability and economic efficiency.

Keywords: water supply projects; contingent valuation; willingness to pay; water service reliability; water service quality; water supply variability; Morocco; Modern Portfolio Theory; water resource management; economic efficiency; water source portfolios; policymaking; strategic planning; resource management; environmental sustainability. (search for similar items in EconPapers)
Pages: 86 Pages
Date: 2024-02-26
New Economics Papers: this item is included in nep-agr, nep-ara, nep-env and nep-ppm
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://cri-world.com/publications/qed_dp_4614.pdf
http://cri-world.com/publications/qed_dp_4614.xls
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://cri-world.com/publications/qed_dp_4614.xls [301 Moved Permanently]--> https://cri-world.com:443/publications/qed_dp_4614.xls)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:qed:dpaper:4614

Access Statistics for this paper

More papers in Development Discussion Papers from JDI Executive Programs Contact information at EDIRC.
Bibliographic data for series maintained by Mark Babcock ().