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The economics of water resources for the generation of electricity and other uses

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  • Alexandre Stamford da Silva
  • Fernando Campello de Souza

Abstract

An optimal control approach is used to analyze the tradeoff between the use of water resources for electricity generation versus other economic uses (irrigation, industry, etc.). For that purpose, a dynamic model is presented which establishes relationships between economic growth, water resources management, and energy policy in the context of the aforementioned tradeoff, in an economy whose energy matrix is heavily dependent upon hydroelectric power. Among other results, the analysis establishes that in the market, the price of water for non-energy uses should be twice the price of the energy goods, indicating the necessity of substituting other sources of energy for hydroelectric power. Copyright Springer Science+Business Media, LLC 2008

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  • Alexandre Stamford da Silva & Fernando Campello de Souza, 2008. "The economics of water resources for the generation of electricity and other uses," Annals of Operations Research, Springer, vol. 164(1), pages 41-61, November.
    • Handle: RePEc:spr:annopr:v:164:y:2008:i:1:p:41-61:10.1007/s10479-008-0360-z
    DOI: 10.1007/s10479-008-0360-z
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    Cited by:

    1. Motamed, Mesbah J. & Arriola, Christine & Hansen, James & MacDonald, Stephen, 2013. "Cotton and Hydropower in Central Asia: How Resource Competition Affects Trade," Economic Information Bulletin 262128, United States Department of Agriculture, Economic Research Service.
    2. Santiago, Katarina Tatiana Marques & Campello de Souza, Fernando Menezes & de Carvalho Bezerra, Diogo, 2014. "A strong argument for using non-commodities to generate electricity," Energy Economics, Elsevier, vol. 43(C), pages 34-40.

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