Dynamic marginal cost curves to support water resources management.
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| Title: | Dynamic marginal cost curves to support water resources management. |
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| Authors: | Nicolaidis Lindqvist, Andreas1,2,3 (AUTHOR) andreas.nicolaidis@ri.se, Carnohan, Shane1 (AUTHOR), Fornell, Rickard1 (AUTHOR), Tufvesson, Linda2 (AUTHOR), Prade, Thomas2 (AUTHOR), Lindhe, Andreas4 (AUTHOR), Sjöstrand, Karin1 (AUTHOR) |
| Source: | Journal of Environmental Management. Sep2024, Vol. 368, pN.PAG-N.PAG. 1p. |
| Subjects: | Water management, Direct costing, Water shortages, Environmental management, Environmental policy |
| Abstract: | Marginal cost curves (MCCs) are popular decision-support tools for assessing and ranking the cost-effectiveness of different options in environmental policy and management. However, conventional MCC approaches have been criticized for lack of transparency and disregard for complexity; not accounting for interaction effects between measures; ignoring ancillary benefits and costs; and not considering intertemporal dynamics. In this paper, we present an approach to address these challenges using a system dynamics (SD)-based model for producing dynamic MCCs. We describe the approach by applying it to evaluate efforts to address water scarcity in a hypothetical, but representative, Swedish city. Our results show that the approach effectively addresses all four documented limitations of conventional MCC methods. They also show that combining MCCs with behavior-over-time graphs and causal-loop diagrams can lead to new policy insights and support a more inclusive decision-making process. [Display omitted] • A system dynamics-based approach for producing marginal cost curves calculations is presented. • The approach is applied to evaluate water scarcity mitigation measures. • Key limitations of conventional marginal cost curve methods are addressed. • The approach opens for new policy insights and a more inclusive decision-making process. [ABSTRACT FROM AUTHOR] |
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| Database: | Engineering Source |
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