Using Economic Loss Functions to Value Urban Water Scarcity in California

摘要

On California, relatively high population growth and increasing competition for water to fulfill environmental requirements are creating severe strains on the water resources system and its management (CDWR, 1998a). The growing complexity and controversy of California's water problems require new forms of analysis and new ways to identify promising solutions, spanning the spectrum from permanent and temporary supply increases to long-term and drought-response demand management. As water scarcity becomes a recognized characteristic of California's drought-prone climate, traditional water supply planning and analysis methods based on fixed water requirements and the concept of system yield are often proving controversial and inadequate to address the range and multitude of proposed solutions. Economic valuation provides a simple, consistent, and understandable principle to help evaluate complex mixes of infrastructure and policy options to increase water supplies, reduce demands, and allocate resources.