Dynamic marginal cost curves to support water resources management

Sammanfattning

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 behaviorover-time graphs and causal-loop diagrams can lead to new policy insights and support a more inclusive decisionmaking process.

Nyckelord

Marginal cost curve; Water; System dynamics; Simulation; Cost-effectiveness

Publicerad i

Journal of Environmental Management
2024, volym: 368, artikelnummer: 122004

SLU författare

• Nicolaidis, Andreas

  • Institutionen för biosystem och teknologi, Sveriges lantbruksuniversitet
    
  • RISE Research Institutes of Sweden
  • Stockholms Universitet

• Tufvesson, Linda

  • Institutionen för biosystem och teknologi, Sveriges lantbruksuniversitet
    

• Prade, Thomas

  • Institutionen för biosystem och teknologi, Sveriges lantbruksuniversitet
    

Globala målen (SDG)

SDG8 Anständiga arbetsvillkor och ekonomisk tillväxt
SDG9 Hållbar industri, innovationer och infrastruktur
SDG12 Hållbar konsumtion och produktion

UKÄ forskningsämne

Miljöledning

Publikationens identifierare

• DOI: https://doi.org/10.1016/j.jenvman.2024.122004

Permanent länk till denna sida (URI)

https://res.slu.se/id/publ/131388