Economic Valuation for Improving Supply Reliability: Risk Countermeasures for Water Quantity and Quality in Water Supply Systems

  • Chisato AsahiEmail author
  • Kiyoko Hagihara
Part of the New Frontiers in Regional Science: Asian Perspectives book series (NFRSASIPER, volume 4)


In the supply of water, there is simultaneously a demand for maintenance of supply reliability from the viewpoint of public interest and a demand for efficiency against the backdrop of funding difficulty. In order to examine how these demands can be met through the use of market mechanisms and to identify the optimum replacement investment, maintenance and management, etc. for facilities, a framework must be created that ties together the risks of quantity and quality related to the reliability of supply with decisions concerning investment and the establishment of standards. This chapter uses an economic viewpoint to organize the risks of quantity and quality in and to utility water systems to conduct a valuation of countermeasures for these risks. The first two sections organize the changing nature and methods of understanding the water supply system for utility water and its quantitative and qualitative risks. Next section presents and considers establishment and operation cases of quantitative and qualitative risk countermeasures in current supply systems. Section 9.4 presents the optimization model for evaluating reliability to enable valuation of the supply system under these risks. The welfare measures that should be applied to risk-averse economic agents are organized based on welfare economics theory. The chapter concludes by summarizing critical system design focus points in order to realize a water supply system that is quantitatively and qualitatively reliable and efficient.


Municipalwatersupply Risk management Welfare measurement under uncertainty Reliability 


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Copyright information

© Springer Japan 2016

Authors and Affiliations

  1. 1.Division of Urban Policy, Faculty of Urban Liberal ArtsTokyo Metropolitan UniversityHachioji, TokyoJapan
  2. 2.School of SociologyBukkyo UniversityKyotoJapan

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