Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/107861
Authors: 
Houba, Harold
Do, Kim Hang Pham
Zhu, Xueqin
Year of Publication: 
2014
Series/Report no.: 
Tinbergen Institute Discussion Paper 14-143/II
Abstract: 
This paper studies the relation between optimal dam capacity and water management under rivalry uses and externalities. We extend the hydropower generation model, based on Haddad (2011), by including the competing use of water resource, non-linear building cost of dam capacity and externalities in a welfare optimization model. We obtain the optimal dam capacity for multi-functional dams such as providing infrastructure for industrial and households water use, conjunctive use of hydropower generation and irrigation; storing water in the wet season for use in the dry season, and mitigating flooding damages. The optimal solution shows that optimal dam capacity is characterized by the marginal benefits of hydropower generation, the marginal costs of flooding damages, and the constraining factors. Moreover, the optimal water management can be achieved by using derived sea sonal prices in a decentralized manner.
Subjects: 
OR in environment and climate change
river-basin management
dam capacity
welfare optimization
externalities
JEL: 
C71
C72
D62
Document Type: 
Working Paper

Files in This Item:
File
Size
215.28 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.