Articles | Volume 19, issue 9
Research article
23 Sep 2015
Research article |  | 23 Sep 2015

Definition of efficient scarcity-based water pricing policies through stochastic programming

H. Macian-Sorribes, M. Pulido-Velazquez, and A. Tilmant

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Cited articles

Alvarez-Mendiola, E.: Diseño de una política eficiente de precios del agua integrando costes de oportunidad del recurso a escala de cuenca, PhD dissertation, Universitat Politècnica de València, Valencia, Spain, 2012 (in Spanish).
Andreu, J., and Sahuquillo, A.: Efficient aquifer simulation in complex systems, J. Water Res. Pl.-ASCE, 113, 110–129, 1987.
CHJ: Esquema provisional de Temas Importantes, Ministerio de Medio Ambiente y Medio Rural y Marino, Confederación Hidrográfica del Júcar, Valencia, Spain, 2009 (in Spanish).
Dandy, G. C., McBean, E. A., and Hutchinson, B. G.: A model for constrained optimum water pricing and capacity expansion, Water Resour. Res., 20, 511–520, 1984.
Dinar, A., Rosegrant, M. W., and Meinzen-Dick, R.: Water Allocation Mechanisms – Principles and Examples, Agriculture and Natural Resources Department, World Bank, Washington, DC, USA, 2007.
Short summary
One of the most promising alternatives to improve the efficiency in water usage is the implementation of scarcity-based pricing policies based on the opportunity cost of water at the basin scale. Time series of the marginal value of water at selected locations (reservoirs) are obtained using a stochastic hydro-economic model and then post-processed to define step water pricing policies.