Selected problems of ambiguity of the dual price of water in the post-optimization analysis of the water supply system

Abstract

An analysis conducted by the World Bank [64] indicates that water shortages in some regions may reduce GDP by up to 6% and lead to increased migration and in some cases to a greater risk of conflict. Droughts and periods of water scarcity have become a more common and more frequent phenomenon in Europe [17]. The drought experiences in Europe in 2011, 2012, 2015 and 2018 were the worst in a century and affected not only Southern and Western Europe, but also the countries in Northern Europe (including Great Britain, France, Germany, Sweden and Poland). The difference between water supply and its growing demand also determines the key limitations of China’s economic development. It is estimated that before 2005 due to a shortage of water in production, China lost $ 28 511 million annually. Brown [7] concluded that the shortage of water in China will soon be a threat to global cereal demand. Therefore, water, alongside cereals and crude oil, is referred to as a strategic resource. Hence, it is suggested that public authorities should shape water pricing for users in order to reflect its true shortage or alternative costs [15]. Table 3. Steady state availability versus for Case 2