Water is everywhere, but clean water for consumption or irrigation is becoming increasingly scarce. Economic analyses of water management deal with questions such as: * How should water trading be organized?
* What are the costs and benefits of water management?
* How should international agreements on international rivers be organized? * How can we allocate water within river catchments efficiently? * What economic instruments should we use to manage water? A student conducting an economic analysis of water management is likely to collaborate with hydrologists. He or she may develop an economic model, perform a game theoretical analysis, or conduct a monetary valuation survey. INTRODUCTION
Urban water infrastructure typically includes water collection and storage facilities at source sites, water transport via aqueducts (canals, tunnels and/or pipelines) from source sites to water treatment facilities; water treatment, storage and distribution systems; wastewater collection (sewage) systems and treatment; and urban drainage works. This is illustrated as a simple schematic in Figure. Generic simulation models of components of urban water systems have been developed and are commonly applied to study specific component design and operation issues. Increasingly, optimization models are being used to estimate cost-effective designs and operating policies. Cost savings can be substantial, especially when applied to large complex urban systems (Dandy and Engelhardt, 2001; Savic and Walters, 1997).
Figure. Schematic showing urban surface water source, water treatment prior to urban use, and some sources of nonpoint urban drainage and runoff and its impacts.
Most urban water users require high-quality water, and natural surface and/or groundwater supplies, called raw water, often cannot meet the quality requirements of domestic and industrial users. In such situations, water treatment is required prior to its...