Derivation of Optimal Hedging Rules for a Water-supply Reservoir through Compromise Programming

J. Shiau () and H. Lee

Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), 2005, vol. 19, issue 2, 132 pages

Abstract: This study derives optimal hedging rules for simultaneously minimizing short- and long-term shortage characteristics for a water-supply reservoir. Hedging is an effective measure to reduce a high-percentage single period shortage, but at a cost of more frequent small shortages. Thus simultaneously minimizing the maximum monthly shortage and the shortage ratio (defined as the ratio of total shortages to total demands) over the analysis horizon is the operation goal of a water-supply reservoir to derive optimal hedging rules. Two types of hedging are explored in this study: the first uses water availability defined as storage plus inflow, while the second depends on the potential shortage conditions within a specific future lead-time period. The compromise programming is employed to solve this conflicting multiobjective problem. The optimal hedging rules under given reservoir inflow are derived first. Because future inflow cannot be known exactly in advance, the monthly decile inflows are suggested as a surrogate for forecast of future inflows in hedging rules for real-time reservoir operations. The results show that the suggested method can effectively achieve the reservoir operation goal. The merits of the proposed methodology are demonstrated with an application to the Shihmen reservoir in Taiwan. Copyright Springer Science + Business Media, Inc. 2005

Keywords: compromise programming; hedging rule; shortage indicator; water availability (search for similar items in EconPapers)
Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

Downloads: (external link)
http://hdl.handle.net/10.1007/s11269-005-1502-6 (text/html)
Access to full text is restricted to subscribers.

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:spr:waterr:v:19:y:2005:i:2:p:111-132

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/11269

DOI: 10.1007/s11269-005-1502-6

Access Statistics for this article

Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA) is currently edited by G. Tsakiris

More articles in Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA) from Springer, European Water Resources Association (EWRA)
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().