Investigating the value of keeping options open for water infrastructure in the Lower Hunter, New South Wales

Title: Investigating the value of keeping options open for water infrastructure in the Lower Hunter, New South Wales
Creator: Rust, Steven; Silberberg, Ben; Turner, Emma; Sharp, Basil
Relation: Utilities Policy Vol. 62, Issue February 2020, no. 100980
Publisher Link: http://dx.doi.org/10.1016/j.jup.2019.100980
Publisher: Elsevier
Resource Type: journal article
Date: 2020
Description: Policy discussions around the world have increasingly focused on the need for resilient water and wastewater systems. The use of small-scale, ‘incremental’, measures that maintain substitutability in investment choices can improve a system's adaptability. Using past shifts/shocks, we estimate an option value for unforeseen events that can change the yield-demand balance for potable supply. For a hypothetical dam, we find avoided costs ranging from $11.1 m to $78.1 m for amounts of extra time ranging from one to ten years; and for a permanent desalination plant, the avoided costs ranged from $33.6 m up to $234.7 m for the same amounts of extra time.
Subject: hunter water corporation; option value; water resilience; SDG 6; SDG 9; Sustainable Development Goals
Identifier: http://hdl.handle.net/1959.13/1454190
Identifier: uon:44866
Identifier: ISSN:0957-1787
Language: eng
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