Valuing flexibilities in the design of urban water management systems

Water Research

Volumn 47, Issue 20, 2013, Pages 7162-7174

  Deng, Yinghan ^a   Cardin, Michel Alexandre ^a   Babovic, Vladan ^a,b   Santhanakrishnan, Deepak ^a   Schmitter, Petra ^b   Meshgi, Ali ^b  

^a NATIONAL UNIVERSITY OF SINGAPORE   (Singapore)

^b SGP Delft Water Alliance   (Singapore)

Author keywords

Engineering system design and evaluation; Real options analysis; Urban water management systems

Indexed keywords

CATCHMENTS; CLIMATE CHANGE; COSTS; INVESTMENTS; RUNOFF; SYSTEMS ANALYSIS; UNCERTAINTY ANALYSIS; WATER MANAGEMENT;

DECISION MAKERS; DESIGN AND EVALUATIONS; ENGINEERING SYSTEM DESIGN; ENGINEERING SYSTEM DESIGN AND EVALUATION; REAL OPTIONS ANALYSIS; SYSTEM EVALUATION; UNCERTAINTY; URBAN WATER MANAGEMENT; URBAN WATER MANAGEMENT SYSTEM; WATER MANAGEMENT SYSTEMS;

DECISION MAKING;

WATER;

CATCHMENT; CLIMATE CHANGE; DECISION MAKING; DESIGN; EXPENDITURE; PAVEMENT; RAINFALL; SUSTAINABILITY; UNCERTAINTY ANALYSIS; URBAN DRAINAGE; URBANIZATION; WATER ECONOMICS; WATER MANAGEMENT;

ARTICLE; CATCHMENT; DECISION MAKING; ENERGY RESOURCE; FUTUROLOGY; INVESTMENT; PRIORITY JOURNAL; PROCESS OPTIMIZATION; RISK REDUCTION; SENSITIVITY ANALYSIS; SINGAPORE; STATISTICAL ANALYSIS; UNCERTAINTY; URBAN AREA; URBANIZATION; WATER MANAGEMENT; WATER SUPPLY;

SINGAPORE [SOUTHEAST ASIA];

ENGINEERING SYSTEM DESIGN AND EVALUATION; REAL OPTIONS ANALYSIS; URBAN WATER MANAGEMENT SYSTEMS;

CONSERVATION OF NATURAL RESOURCES; FLOODS; MODELS, THEORETICAL; RAIN; SINGAPORE; UNCERTAINTY; URBANIZATION; WATER SUPPLY;

EID: 84897061075     PISSN: 00431354     EISSN: 18792448     Source Type: Journal    
DOI: 10.1016/j.watres.2013.09.064     Document Type: Article

References (33)

1. Babajide A., De Neufville R., Cardin M.-A. Integrated method for designing valuable flexibility in oil development projects. SPE Projects Facil. Construct. 2009, 4:3-12.
2. Black F., Scholes M. The pricing of options and corporate liabilities. J. Polit. Econ. 1973, 81(3):637-654.
3. Boardman A.E., Greenberg D.H., Vining A.R., Weimer D.L. Cost Benefit Analysis: Concepts and Practice 2006, Prentice Hall, New Jersey. third ed.
4. Buurman J., Zhang S., Babovic V. Reducing risk through real options in systems design: the case of architecting a maritime domain protection system. Risk Anal. 2009, 29(3):366-379. [Research Support, Non-U.S. Gov't]. 10.1111/j.1539-6924.2008.01160.x.
5. Cardin, M.-A., Nuttall, W.J., de Neufville, R., & Dahlgren, J., 2007. Extracting value from uncertainty: a methodology for engineering systems design. In: Paper Presented at the 17th Annual International Symposium of the International Council on Systems Engineering (INCOSE), San Diego, California.
6. Cardin M.-A., de Neufville R., Kazakidis V. A process to improve expected value of mining operations. Trans. Inst. Min. Metall. Min. Technol. 2008, 117:65-70.
7. Cardin M.-A., Kolfschoten G.L., Frey D.D., de Neufville R., Weck O.L., Geltner D.M. Empirical evaluation of procedures to generate flexibility in engineering systems and improve lifecycle performance. Res. Eng. Design 2013, 24(3):277-295. 10.1007/s00163-012-0145-x.
8. Code of Practice-Drainage Design and Considerations http://www.pub.gov.sg/general/code/Pages/SurfaceDrainagePart2-7.aspx.
9. Cox J.C., Ross S.A., Rubinstein M. Option pricing: a simplified approach. J. Financial Econ. 1979, 7:229-263.
10. Czitrom V. One-factor-at-a-time versus designed experiments. Am. Stat. 1999, 53(2):126-131.
11. de Neufville R., Scholtes S. Flexibility. Engineering Design. Engineering Systems 2011, MIT Press, Cambridge, MA, United States.
12. de Weck O., de Neufville R., Chaize M. Staged deployment of communications satellite constellations in low earth orbit. J. Aero. Comput. Inform. Commun. 2004, 1:119-136.
13. Guma A., Pearson J., Wittels K., Neufville R.D., Geltner D. Vertical phasing as a corporate real estate strategy and development option. J. Corp. R. Estate 2009, 11(3):144-157.
14. Hellstrom D., Jeppssonb U., Karrman E. A framework for systems analysis of sustainable urban water management. Environ. Impact Assess. Rev. 2000, 20(2000):311-321.
15. Jensen J.L.W.V. Sur les fonctions convexes et les inégalités entre les valeurs moyennes. Acta Math. 1906, 30(1):175-193. 10.1007/bf02418571.
16. Makropoulos C.K., Natsis K., Liu S., Mittas K., Butler D. Decision support for sustainable option selection in integrated urban water management. Environ. Model. Software 2008, 23(12):1448-1460. 10.1016/j.envsoft.2008.04.010.
17. Medellín-Azuara J., Mendoza-Espinosa L.G., Lund J.R., Ramírez-Acosta R.J. The application of economic-engineering optimisation for water management in Ensenada, Baja California, Mexico. Water Sci. Technol. 2007, 55(1-2):339-347.
18. Michailidis A., Mattas K., Tzouramani I., Karamouzis D. A socioeconomic valuation of an irrigation system project based on real option analysis approach. Water Resour. Manag. 2009, 23(10):1989-2001.
19. Morimoto R., Hope C. An Extended CBA Model of Hydro Projects in Sri Lanka, Research Papers in Management Studies 2001, Judge Institute of Management, University of Cambridge, UK, Retrieved from. http://www.jbs.cam.ac.uk/research/working_papers/2001/wp0115.pdf.
20. Morimoto R., Hope C. An Empirical Application of Probabilistic CBA: Three Case Studies on Dams in Malaysia, Nepal, and Turkey. Research Papers in Management Studies 2002, Judge Institute of Management, University of Cambridge, UK, Retrieved from. http://www.jbs.cam.ac.uk/research/working_papers/2002/wp0219.pdf.
21. Pahl-Wostl C., Craps M., Dewulf A., Mostert E., Tabara D., Taillieu T. Social learning and water resources management. Ecol. Soc. 2007, 12(2).
22. Pearson L.J., Coggan A., Proctor W., Smith T.F. A sustainable decision support framework for urban water management. Water Resour. Manag. 2009, 24(2):363-376. 10.1007/s11269-009-9450-1.
23. Savage S. The Flaw of Averages 2000, SAN JOSE MERCURY NEWS.
24. Thomas J.-S., Durham B. Integrated Water Resource Management: looking at the whole picture. Desalination 2003, 156(1-3):21-28.
25. Trigeorgis L. Real Options 1996, MIT Press, Cambridge, MA, United States.
26. UNESCO A. Sustainability Criteria for Water Resource Systems 1998, ASCE, Reston, VA.
27. Urbanization http://www.cia.gov/library/publications/the-world-factbook/fields/2212.html.
28. Wang T. Real Options "in" Projects and Systems Design-identification of Options and Solution for Path Dependency 2005, Doctor of Philosophy, Massachusetts Institute of Technology, Cambridge, MA, USA.
29. Weather Statistics http://app2.nea.gov.sg/weather-climate/climate-information/weather-statistics.
30. Zhang S.X., Babovic V. An evolutionary real options framework for the design and management of projects and systems with complex real options and exercising conditions. Decis. Support Syst. 2011, 51(1):119-129. 10.1016/j.dss.2010.12.001.
31. Zhang S.X., Babovic V. A real options approach to the design and architecture of water supply systems using innovative water technologies under uncertainty. J. Hydroinform. 2012, 14(1):13. 10.2166/hydro.2011.078.
32. Zhang S., Buurman J. Under carriageway water storage (UCWS) desktop feasibility study. Singapore-Delft Water Alliance 2010, V. Babovic (Ed.).
33. Zoppou C. Review of urban storm water models. Environ. Model. Software 2001, 16(3):195-231.