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Determination of Optimal Capacity for Water Imports

by Mac McKee, Humboldt State Univ, United States,
Donna Lydon, Humboldt State Univ, United States,



Document Type: Proceeding Paper

Part of: National Water Conference

Abstract:

Determination of the optimal size of water import facilities is inextricably related to the issue of establishing the optimal water price, and is made more difficult by the stochastic nature of the water resources. Also, seasonal water demands will be affected by alternative water pricing policies. These factors-water pricing policy, optimal price, and hydrologic stochasticity-significantly complicate the process of sizing import structures. A stochastic programming model is developed and used to examine water import alternatives for Salt Lake City, Utah. The model is based on welfare economics principles and can incorporate multiple local and imported sources. The model can also be used to explore pricing policies, to identify optimal prices, and to assess the implications of pricing and imports toward water conservation.

Subject Headings: Water resources | Pricing | Salt water | Water policy | Water conservation | Water supply systems | Water supply | Utah | United States

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