A Hydro-Economic Model to Support Water Scarcity

Renata Locarno Frota, Samíria Maria Oliveira Silva, Francisco de Assis Souza Filho and Victor Costa Porto
Additional contact information
Renata Locarno Frota: Department of Hydraulic and Environmental Engineering, Federal University of Ceará Fortaleza, CE 60020-181, Brazil
Samíria Maria Oliveira Silva: Department of Hydraulic and Environmental Engineering, Federal University of Ceará Fortaleza, CE 60020-181, Brazil
Francisco de Assis Souza Filho: Department of Hydraulic and Environmental Engineering, Federal University of Ceará Fortaleza, CE 60020-181, Brazil
Victor Costa Porto: Department of Hydraulic and Environmental Engineering, Federal University of Ceará Fortaleza, CE 60020-181, Brazil

Water Economics and Policy (WEP), 2023, vol. 09, issue 01, 1-28

Abstract: Climate variability is reflected in water affluence that directly impacts the availability and level of water in reservoirs. Economic instruments, such as tariffs, are increasingly being used to promote the rational use of water. This study offers a floating rate model for charging raw water as a function of the reservoir level. The model was designed in the Jaguaribe–Metropolitan System, a place characterized by water-use conflicts during water scarcity. The model was developed as a function of the unit payment capacity (UPC) and drought states of the hydrographic regions. We applied the free software R and PSO optimization package to define the optimal UPC fraction and evaluated the model sensitivity using a synthetic series generated with the Markov chain method. Consequently, we observed that comfortable, alert, and critical situation levels predominated in the sensitivity analysis, and the average collections paid for administration, operation, and maintenance (AO&M) costs. In some cases, a collection surplus that can be managed through a financial fund to finance the system in periods of critical shortage is generated.

Keywords: Float tariffs; river basin management; risk; water scarcity (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S2382624X22500126
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:wsi:wepxxx:v:09:y:2023:i:01:n:s2382624x22500126

Ordering information: This journal article can be ordered from

DOI: 10.1142/S2382624X22500126

Access Statistics for this article

Water Economics and Policy (WEP) is currently edited by Ariel Dinar

More articles in Water Economics and Policy (WEP) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().