Comparisons of Risk-based Decision Rules for the Application of Water Resources Planning and Management

Hsin-Ting Su () and Yeou-Koung Tung ()

Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), 2014, vol. 28, issue 12, 3935 pages

Abstract: Water resources planning and management are plagued with various uncertainties in that any chosen management alternative always has the possibility to be inferior to other competing alternatives. To facilitate risk-based decision making, the minimax expected opportunity loss (EOL) rule is applied for alternative selection. Two existing risk measures as well as EOL are compared and their implications in risk-based decision making are examined. It is shown that EOL can reflect more accurately the relative merit of two competing alternatives without suffering the pessimism and the counter-intuition of the other two risk measures considered herein. The minimax EOL rule is demonstrated through an application to a river basin management decision for improving the navigation. The results show that the correlation between outcomes of competing alternatives and decision maker’s acceptable risk are important in decision making under uncertainty. Copyright Springer Science+Business Media Dordrecht 2014

Keywords: Water resources management; Decision making under uncertainty; Risk; Risk measure; Opportunity loss (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://hdl.handle.net/10.1007/s11269-014-0718-8 (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:28:y:2014:i:12:p:3921-3935

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

DOI: 10.1007/s11269-014-0718-8

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 ().