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1 results

  • Chapter 6 - Accounting for Uncertain Water Supplies

  • Ariel Dinar, University of California, Riverside, Yacov Tsur, Hebrew University of Jerusalem
  • Book:
    The Economics of Water Resources
    Published online:
    21 April 2021
    Print publication:
    15 April 2021, pp 115-132

  • Summary

    The chapter discusses how to account for stochastic water supplies associated with uncertain precipitations by using fluctuating and stable sources conjunctively in order to stabilize overall water supplies. Natural water sources are characteristically uncertain due to their dependence on precipitation. The extent of the fluctuations varies across natural sources, depending on whether the source depends solely on the current year’s precipitation (i.e., it is a flow source) or accumulates precipitation over a number of years, thus is a stock source (e.g., aquifers). The chapter develops first a simple analytical framework that is then extended to the comprehensive water economy setup formulated in Chapter 2.