Option Games in Water Infrastructure Investment

Suttinon, Pongsak; Bhatti, Asif M.; Nasu, Seigo

doi:10.1061/(asce)wr.1943-5452.0000168

Cited by 16 publications

(6 citation statements)

References 1 publication

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“…The application of game theory to water resources management has been discussed by a number of works, such as water or cost/benefit allocation (Dinar & Howitt, 1997;Wang et al, 2008) and water quality management (Niksohkhn et al, 2009;Schreider et al, 2010). Yet game theory applications to water supply management are still under development (Suttinon et al, 2012). Tapiero (2004) created a game theory framework to investigate governmental subsidies and penalties which can influence the possible actions of enterprises.…”

Section: Game Model Developmentmentioning

confidence: 99%

Key stakeholders' optimal strategy for upgrading water supply facilities in China

Jia

et al. 2014

Water Policy

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It is urgent to upgrade, replace and improve water supply facilities in China. Penalty, subsidy and water price increase are often considered the main policy tools for encouraging water supply companies to upgrade their production facilities. However, the implementation of upgrading water supply facilities is being confronted with some uncertainties because of the conflicts of involved stakeholders. This study develops a game model between municipal government and a water company to analyze their conflicts of interests and optimize the strategy for upgrading water supply facilities. Empirical analyses from three Chinese urban water companies are presented. Using theoretical and numerical analysis, the effects of penalty, subsidy and water price increase on strategies of upgrading water supply facilities were obtained. The main findings are that water price and penalty are the effective policies to optimize key stakeholders' strategies, while subsidy policy is not useful. The conclusion has important policy implications for ensuring water supply safety and reliability.

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Section: Game Model Developmentmentioning

confidence: 99%

Key stakeholders' optimal strategy for upgrading water supply facilities in China

Jia

et al. 2014

Water Policy

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“…Surprisingly, investment games remain scant in the water literature. We can, however, quote the work of Suttinon et al [38] for an application of option games to water infrastructure investment. We thus investigate the game of investment timing that underlies technological change in water use.…”

Section: Investment Gamesmentioning

confidence: 99%

Technological Change in Water Use: A Mean-Field Game Approach to Optimal Investment Timing

2020

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“…This analysis will require data, such as the economic activity of the river basin, including the cropped area, manufacturing information, and number of population; and water demand in this river basin. The effect of climate change in water supply and the of countermeasures on decision making present another interesting topic for research (Suttinon and Nasu, ; Suttinon et al, ).…”

Section: Conclusion and Recommendationsmentioning

confidence: 99%

Water Resources Management in Shikoku Region by Inter‐regional Input–output Table

Suttinon

Nasu

Ihara

et al. 2013

Rev Urban & Reg Develop

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This paper proposes the use of inter-regional input-output model for water accounts (IRIOWater), which combines inter-regional input-output model and water accounts system, as a tool to evaluate water demand and water-policy impacts among each industrial sector in Shikoku region of Japan. This IRIO-Water model which combines a descriptive device and an analytical tool, is enumerated by combining three regions as (1) upper Shikoku, (2) lower Shikoku, and (3) the rest of Japan under conditions of rainfall pattern, geographical area, and inter-regional trade of each region. The calculation results of water demand are compared among each industrial sector with impacts from implementation of governmental policies such as 3Rs policy (reduce-reuse-recycle). The results in this paper indicated that IRIO-Water

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Option Games in Water Infrastructure Investment

Cited by 16 publications

References 1 publication

Key stakeholders' optimal strategy for upgrading water supply facilities in China

Key stakeholders' optimal strategy for upgrading water supply facilities in China

Technological Change in Water Use: A Mean-Field Game Approach to Optimal Investment Timing

Water Resources Management in Shikoku Region by Inter‐regional Input–output Table

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