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Investigating the value of keeping options open for water infrastructure in the Lower Hunter, New South Wales

Citation

Rust, S and Silberberg, B and Turner, E and Sharp, B, Investigating the value of keeping options open for water infrastructure in the Lower Hunter, New South Wales, Utilities Policy, 62 Article 100980. ISSN 0957-1787 (2020) [Refereed Article]


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DOI: doi:10.1016/j.jup.2019.100980

Abstract

Policy discussions around the world have increasingly focused on the need for resilient water and wastewater systems. The use of small-scale, 'incremental', measures that maintain substitutability in investment choices can improve a system's adaptability. Using past shifts/shocks, we estimate an option value for unforeseen events that can change the yield-demand balance for potable supply. For a hypothetical dam, we find avoided costs ranging from $11.1 m to $78.1 m for amounts of extra time ranging from one to ten years; and for a permanent desalination plant, the avoided costs ranged from $33.6 m up to $234.7 m for the same amounts of extra time.

Item Details

Item Type:Refereed Article
Keywords:water resilience, option value, hunter water corporation
Research Division:Economics
Research Group:Applied economics
Research Field:Agricultural economics
Objective Division:Environmental Management
Objective Group:Other environmental management
Objective Field:Other environmental management not elsewhere classified
UTAS Author:Rust, S (Dr Steven Rust)
ID Code:152271
Year Published:2020
Deposited By:Sustainable Marine Research Collaboration
Deposited On:2022-08-16
Last Modified:2022-08-23
Downloads:0

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