A Deterministic Smart Market Model for Ground Water

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dc.contributor.authorRaffensperger, J. F.
dc.contributor.authorMilke, M.W.
dc.contributor.authorRead, E.G.
dc.date.accessioned2010-01-27T02:12:16Z
dc.date.available2010-01-27T02:12:16Z
dc.date.issued2009en
dc.description.abstractEfficient management of water requires balancing environmental needs, externality considerations, and economic efficiency. Toward that end, this paper presents a deterministic linear program that could be used to operate a smart spot market for groundwater. The market design uses the existing hydrological programs MODFLOW and GWM along with standard linear programming methods. In principle, a market could be set up anywhere that a MODFLOW model is available. The market design has parallels to markets in the electricity and gas sectors, which we discuss. We present a case study with notional bids for Marlborough, New Zealand. Our approach would reduce transaction costs for a water market, reduce users’ risk, and increase the reliability of environmental flows. We discuss a number of cautions and limitations to the model and recommend further work on introducing a stochastic framework to the model.en
dc.identifier.citationRaffensperger, J. F., Milke, M.W., Read, E.G. (2009) A Deterministic Smart Market Model for Ground Water. Operations Research, 57(6), pp. 1333-1346.en
dc.identifier.doihttps://doi.org/10.1287/opre.1090.0730
dc.identifier.issn0030-364X
dc.identifier.urihttp://hdl.handle.net/10092/3416
dc.language.isoen
dc.publisherUniversity of Canterbury. Civil and Natural Resources Engineeringen
dc.publisherUniversity of Canterbury. Managementen
dc.rights.urihttps://hdl.handle.net/10092/17651en
dc.subjectGames/group decisions: bidding/auctions. Environment. Natural resources: water resourcesen
dc.subject.marsdenFields of Research::290000 Engineering and Technology::290700 Resources Engineeringen
dc.subject.marsdenFields of Research::340000 Economics::340200 Applied Economicsen
dc.titleA Deterministic Smart Market Model for Ground Wateren
dc.typeJournal Article
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