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Dynamic marginal cost curves to support water resources management
RISE Research Institutes of Sweden, Built Environment, Energy and Resources. Stockholm University, Sweden; SLU Swedish University of Agricultural Sciences, Sweden.ORCID iD: 0000-0002-6323-1397
RISE Research Institutes of Sweden, Built Environment, Energy and Resources.ORCID iD: 0000-0003-0083-0269
RISE Research Institutes of Sweden, Built Environment, Energy and Resources.ORCID iD: 0000-0001-6174-1396
SLU Swedish University of Agricultural Sciences, Sweden.
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2024 (English)In: Journal of Environmental Management, ISSN 0301-4797, E-ISSN 1095-8630, Vol. 368, article id 122004Article in journal (Refereed) Published
Abstract [en]

Marginal cost curves (MCCs) are popular decision-support tools for assessing and ranking the cost-effectiveness of different options in environmental policy and management. However, conventional MCC approaches have been criticized for lack of transparency and disregard for complexity; not accounting for interaction effects between measures; ignoring ancillary benefits and costs; and not considering intertemporal dynamics. In this paper, we present an approach to address these challenges using a system dynamics (SD)-based model for producing dynamic MCCs. We describe the approach by applying it to evaluate efforts to address water scarcity in a hypothetical, but representative, Swedish city. Our results show that the approach effectively addresses all four documented limitations of conventional MCC methods. They also show that combining MCCs with behavior-over-time graphs and causal-loop diagrams can lead to new policy insights and support a more inclusive decision-making process. 

Place, publisher, year, edition, pages
Academic Press , 2024. Vol. 368, article id 122004
Keywords [en]
Decision making; Decision support systems; Environmental protection; System theory; Water resources; ground water; water; Ancillary costs; Decision supports; Dynamic marginal costs; Environmental policy; Interaction effect; Marginal cost curves; Simulation; Support tool; System Dynamics; Water resources management; computer simulation; environmental policy; simulation; transparency; water management; water resource; Article; computer simulation; cost effectiveness analysis; decision making; environmental management; environmental policy; marginal cost curve; molecular dynamics; plant water use; water availability; water insecurity; water management; water supply; water treatment; Cost effectiveness
National Category
Environmental Engineering
Identifiers
URN: urn:nbn:se:ri:diva-75027DOI: 10.1016/j.jenvman.2024.122004Scopus ID: 2-s2.0-85201150228OAI: oai:DiVA.org:ri-75027DiVA, id: diva2:1895601
Available from: 2024-09-06 Created: 2024-09-06 Last updated: 2024-09-06Bibliographically approved

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Nicolaidis Lindqvist, AndreasCarnohan, ShaneFornell, RickardSjöstrand, Karin

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