With the increasing scarcity of water resources, the issue of water valuation becomes one of the major keys for an efficient utilisation and allocation of water. The renewable and cyclic nature of water implies that analysing the value of water should be integrated with the whole water system rather than considering in situ direct values of water. This paper presents a number of calculation methods to assess the effect of water storage dynamics on the translation of downstream water values into upstream indirect water values. The problem of water reallocation from downstream to upstream is also considered. The analysis shows that storage dynamics play an important role in the opportunity cost of upstream water abstraction. Finally it is shown that water storage in general enhances the overall total value of the water system.
|Journal||Physics and chemistry of the earth. Part B: hydrology, oceans and atmosphere|
|Publication status||Published - 2002|