The economics of water resources for the generation of electricity and other uses

Alexandre Stamford da Silva () and Fernando Campello de Souza ()

Annals of Operations Research, 2008, vol. 164, issue 1, 61 pages

Abstract: An optimal control approach is used to analyze the tradeoff between the use of water resources for electricity generation versus other economic uses (irrigation, industry, etc.). For that purpose, a dynamic model is presented which establishes relationships between economic growth, water resources management, and energy policy in the context of the aforementioned tradeoff, in an economy whose energy matrix is heavily dependent upon hydroelectric power. Among other results, the analysis establishes that in the market, the price of water for non-energy uses should be twice the price of the energy goods, indicating the necessity of substituting other sources of energy for hydroelectric power. Copyright Springer Science+Business Media, LLC 2008

Keywords: Energy policy; Water resources management; Optimal economic growth; Water uses; Scarce resources (search for similar items in EconPapers)
Date: 2008
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DOI: 10.1007/s10479-008-0360-z

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