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Determining an Optimal Water Mix for Hong Kong

Author

Listed:
  • David von Eiff

    (School of Energy and Environment [Hong Kong] - CUHK - City University of Hong Kong [Hong Kong])

  • Aude Pommeret

    (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc)

Abstract

In this paper, we adapt the decision-making model proposed by Leroux and Martin (2016) to include an additional water resources type to make it suitable for Hong Kong's current and proposed water supply mix. More precisely, we broaden the model to account for purchased water (from China) which is currently the primary source of water for Hong Kong. In addition, purchased water price uncertainty has been integrated, which differs from the uncertainty on water inflows and quality. Harvested stormwater and manufactured water, although not currently used in Hong Kong, may be sources for the future and are therefore considered in a 4-pronged scenario. The objective is to derive the optimal shares for each water supply. We obtain the optimal water mix and consumption levels for several scenarios, the current scenario, the proposed 4-pronged scenario, a drop in water quality, and self-sufficiency. The 4-pronged scenario advocates for a large-scale development of desalination plants in Hong Kong; however, it is also significantly more expensive and therefore results in a lower optimal water consumption which has implications regarding the current water tariff approach.

Suggested Citation

  • David von Eiff & Aude Pommeret, 2021. "Determining an Optimal Water Mix for Hong Kong," Post-Print hal-03969176, HAL.
    • Handle: RePEc:hal:journl:hal-03969176
    DOI: 10.1007/s10666-020-09742-6
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    Cited by:

    1. Yoshioka, Hidekazu & Yoshioka, Yumi, 2024. "Assessing fluctuations of long-memory environmental variables based on the robustified dynamic Orlicz risk," Chaos, Solitons & Fractals, Elsevier, vol. 180(C).

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