2016
DOI: 10.1086/687761
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Measuring Welfare Losses from Urban Water Supply Disruptions

Abstract: The paper evaluates welfare losses from urban water supply disruptions. The analysis incorporates important features of the water industry that may cause the initial allocation of water to be inecient, namely that there are a large number of retail-level water utilities, and that most water utilities engage in a form of average cost pricing where volumetric rates are used to nance xed expenses. We consider a sample of 53 urban water utilities in California collectively providing service to over 20 million cust… Show more

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Cited by 19 publications
(30 citation statements)
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References 25 publications
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“…The dollar value is equal to the weighted sum of flows, based on the flow volume between two points in the network and the specified unit cost. The economic value of losses associated with each water supplier is assessed using a demand function procedure with estimated water prices and elasticities of demand derived from existing sources (Jenkins et al 2003, Buck et al 2016, Porse et al 2018b. The model formulation includes constraints that emphasize minimum deliveries of water to districts for health and safety (in-home residential) and commercial and industrial needs.…”
Section: Water Management Modelingmentioning
confidence: 99%
“…The dollar value is equal to the weighted sum of flows, based on the flow volume between two points in the network and the specified unit cost. The economic value of losses associated with each water supplier is assessed using a demand function procedure with estimated water prices and elasticities of demand derived from existing sources (Jenkins et al 2003, Buck et al 2016, Porse et al 2018b. The model formulation includes constraints that emphasize minimum deliveries of water to districts for health and safety (in-home residential) and commercial and industrial needs.…”
Section: Water Management Modelingmentioning
confidence: 99%
“…This derivation and assumptions are based on an analysis by Buck et al . []. Cadmin= ij|sijcij+i|pbuywcci,bought i|pi,sellwcci,sold+fine, Csocial=|Ei1+EiPi[]|11ri1+scriptEi/scriptEirimciQiri, cost savings= []|Cadmin,m+ Csocial,m true[Cadmin,ref+ …”
Section: Methodsmentioning
confidence: 99%
“…For this study, we follow baseline elasticity and price values as estimated by Buck et al . [] for each of the BAWSCA service areas. These estimates were computed based on observed long‐term trends in BAWSCA.…”
Section: Methodsmentioning
confidence: 99%
“…For example, in power systems, the penalty cost of lost load can be calculated using the commonly used value of lost load [40], [41], which is defined as the estimated amount that power customers receiving electricity with firm contracts would be willing to pay to avoid a disruption in their electricity service [40]. Similar definitions can be applied when other CI systems are considered, e.g., the cost of disruption of gas supply [42] and the cost of welfare losses from urban water supply disruptions [43]. Accordingly, the total system costs under nominal operation condition can be represented as…”
Section: A Problem Statementmentioning
confidence: 99%