UC researchers develop smart way to manage water
Published by Communications and Development
21 January 2010
Groundwater is in decline worldwide but a new method to allocate groundwater among commercial users, developed by researchers at Canterbury University, could solve this part of the world’s water crisis.
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Dr John Raffensperger (left) and Associate Professor Mark Milke. |
In a paper titled “A Deterministic Smart Market Model for Groundwater", published in the journal Operations Research, members of the University’s Water Markets Research Group – Dr John Raffensperger (Management), Associate Professor Mark Milke (Civil and Natural Resources Engineering) and Adjunct Professor E. Grant Read (Management)– outline the “smart market” method for groundwater management.
The “smart market” consists of a daily or weekly auction in which commercial users could trade water, cleared by a computer model. The computer model balances water in the catchment over time, ensuring rivers have flows and aquifers have sustainable levels.
Rather than having to find a buyer or seller and then get government approval, users buy and sell through a common “pool.” A catchment manager pays users who are willing to sell, and gives more water to those who would pay for it.
Dr Raffensperger said the work is “a triple win all around”.
“Users benefit from better allocation, the environment benefits from better flows, and government benefits from a simpler allocation system. We can’t make it rain, but we can allocate the available water more effectively.”
The researchers said economists believed water should be allocated by markets.
“The problem is that pair-wise trades affect many people, so trades require time-consuming government approvals. Even in existing water markets for controlled water in reservoirs, users trade only once per season due to high transaction costs. Also, ‘free’ markets can hurt the environment because stream flows are not adequately protected. Groundwater is even more complex due to underground flows and more serious due to over-allocated catchments. The new work solves all these problems in one stroke.
“A government water authority could serve as auction manager, because government is responsible for protecting the environment. Government would have better control over the catchment, ensuring that the catchment is never over-allocated.”
Dr Raffensperger, Associate Professor Milke and Adjunct Professor Read are extending their work to include nutrient run-off to reduce ocean dead zones, sediment run-off, urban water networks and impervious cover to reduce flooding.
For more information please contact:
John F. Raffensperger
Department of Management
University of Canterbury
New Zealand
Ph: +64 3 364 2987 ext 8616
john.raffensperger@canterbury.ac.nz
Or:
Mark W. Milke
Department of Civil and Natural Resources Engineering
University of Canterbury
New Zealand
Ph: +64 3 364-2248
mark.milke@canterbury.ac.nz
Or:
E. Grant Read
Department of Management
University of Canterbury
New Zealand
Ph: +64 3 364 2987 ext 6885
grant.read@canterbury.ac.nz