Advertisement

Economic Valuation for Improving Supply Reliability: Risk Countermeasures for Water Quantity and Quality in Water Supply Systems

  • Chisato AsahiEmail author
  • Kiyoko Hagihara
Part of the New Frontiers in Regional Science: Asian Perspectives book series (NFRSASIPER, volume 4)

Abstract

In the supply of water, there is simultaneously a demand for maintenance of supply reliability from the viewpoint of public interest and a demand for efficiency against the backdrop of funding difficulty. In order to examine how these demands can be met through the use of market mechanisms and to identify the optimum replacement investment, maintenance and management, etc. for facilities, a framework must be created that ties together the risks of quantity and quality related to the reliability of supply with decisions concerning investment and the establishment of standards. This chapter uses an economic viewpoint to organize the risks of quantity and quality in and to utility water systems to conduct a valuation of countermeasures for these risks. The first two sections organize the changing nature and methods of understanding the water supply system for utility water and its quantitative and qualitative risks. Next section presents and considers establishment and operation cases of quantitative and qualitative risk countermeasures in current supply systems. Section 9.4 presents the optimization model for evaluating reliability to enable valuation of the supply system under these risks. The welfare measures that should be applied to risk-averse economic agents are organized based on welfare economics theory. The chapter concludes by summarizing critical system design focus points in order to realize a water supply system that is quantitatively and qualitatively reliable and efficient.

Keywords

Municipalwatersupply Risk management Welfare measurement under uncertainty Reliability 

References

  1. Asahi, C., & Hagihara, K. (1999). Evaluating risk in drinking water based on the Choice Research, Environmental information science. Journal of Environmental Information Science, 13, 223–226.Google Scholar
  2. Asahi, C., & Hagihara, K. (2004). Ex post risk management of environmental contamination on municipal water. Studies in Regional Science, 34(3), 275–287 (in Japanese).CrossRefGoogle Scholar
  3. Asahi, C., & Hagihara, K. (2010). Evaluation of policy for supply reliability improvement-the case of municipal water supply system under risk. Studies in Regional Science, 40(1), 111–128 (in Japanese).CrossRefGoogle Scholar
  4. Barlow, M., & Clark, T. (2002). Blue gold. Toronto: Stoddart Publishing.Google Scholar
  5. Boadway, R., & Bruce, N. (1984). Welfare economics. Oxford: Basil Blackwell.Google Scholar
  6. Graham, D. A. (1981). Cost-benefit analysis under uncertainty. American Economic Review, 71(4), 715–725.Google Scholar
  7. Hagihara, Y. (1995). Water resources and environment, research report of Water Resources Research Center, No. 15, pp. 51–71. Water Resources Research Centre, Kyoto University (in Japanese).Google Scholar
  8. Hagihara, Y., & Watanabe, H. (1981). Model analysis on fair water allocation, Japan Society of Civil Engineers, papers of research meeting on civil engineering planning, pp. 215–220 (in Japanese).Google Scholar
  9. Howe, C. W., Smith, M. G., Bennett, L., Brendecke, C. M., Flack, J. E., Hamm, R. M., et al. (1993). The value of water supply reliability in urban water system. Journal of Environmental Economics and Management, 26, 19–30.CrossRefGoogle Scholar
  10. Japan Water Works Association. (2008). Outline of water supply (in Japanese).Google Scholar
  11. Japan Water Works Association. (2013). Waterworks statistics (in Japanese).Google Scholar
  12. Just, R. E., Darrell, L. H., & Schmitz, A. (2004). Stochastic welfare economics with applications to agricultural policy analysis. In R. E. Just, L. H. Darrell, & A. Schmitz (Eds.), The welfare economics of public policy: A practical approach to project and policy evaluation (pp. 467–526). Cheltenham/Northampton: Edward Elgar Publishing Limited.Google Scholar
  13. Ministry of Health, Labour and Welfare. (2013). New water supply vision (in Japanese).Google Scholar
  14. Ministry of Health, Labour and Welfare, Government of Japan. (2007). The guidelines for cryptosporidium treatment in water supply (in Japanese).Google Scholar
  15. Ministry of Health, Labour and Welfare, Government of Japan. (2008). Water supply vision revised ed. (in Japanese).Google Scholar
  16. Miyawaki, J., & Magara, Y. (2007). For not stopping municipal water services. Tokyo: Jiji Press Ltd. (in Japanese).Google Scholar
  17. Nomura Research Institute. (2008). Seminar, infrastructure in decline of population, Niikei, 11 Dec 2008, p. 23 (in Japanese).Google Scholar
  18. Odanagi, O. (2004). Water resources-systems analysis and planning, Tokyo: Nissuicon Co. Ltd. 29(1) (in Japanese).Google Scholar
  19. Odanagi, O., Imada, T., Mori, M., & Hagihara, Y. (1997). A study on crisis and risk management of municipal water provision. In Proceedings of the 10th annual conference/Society for Risk Analysis, Japan-Section, pp. 98–105.Google Scholar
  20. Okada, N. (1985). An analytical view of disaster risk, Tokyo: Japan Society of Civil Engineers (in Japanese).Google Scholar

Copyright information

© Springer Japan 2016

Authors and Affiliations

  1. 1.Division of Urban Policy, Faculty of Urban Liberal ArtsTokyo Metropolitan UniversityHachioji, TokyoJapan
  2. 2.School of SociologyBukkyo UniversityKyotoJapan

Personalised recommendations