Supply-Demand Price Coordination in Water Resources Management
Authors: Guariso G, Maidment DR, Rinaldi S, Soncini-Sessa R
Publication Year: 1978
Reference: IIASA Research Report RR-78-011
Abstract
A scheme is proposed for the coordination by prices of water supplies and demands in a region. The objective is to maximize the total regional net benefit from water use and it is achieved when the marginal benefit at each demand point is equal to the marginal cost of delivering water to that point. The class of problems to which the scheme can be applied is determined from the graph of the network connecting supplies and demands. An example is presented in which the scheme is applied to analyze possible interbasin water transfers in the Northwest Water Plan in Mexico.
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