Using Economic and Other Performance Measures to Evaluate a Municipal Drought Plan
Summary
The research evaluates the impact of a tiered pricing drought plan implemented by the El Dorado Irrigation District (EID) using a discrete continuous choice (DCC) model within a water evaluation and planning (WEAP) framework. The analysis finds that the drought plan significantly reduces consumer welfare loss compared to a scenario with no plan, as current consumption levels exceed essential needs. The study also examines non-monetary performance metrics, including reservoir storage and hydropower generation, concluding that the EID bears most of the plan's costs through reduced revenues.
Key insights
- The implementation of the drought plan results in significantly lower welfare loss for El Dorado Irrigation District customers compared to a scenario where no drought plan exists, particularly during the later stages of a drought when water shortages would otherwise cause greater loss.
- The primary financial burden of the drought plan is carried by the El Dorado Irrigation District rather than the customers, manifesting as a decrease in revenue.
- The study utilizes a discrete continuous choice (DCC) model integrated into a climate driven water evaluation and planning (WEAP) model to estimate the compensating variation (CV) of consumer welfare loss when water supply does not meet preferred demand levels.
Cite the original document
- APA
- Stockholm Environment Institute (2013). Using Economic and Other Performance Measures to Evaluate a Municipal Drought Plan. https://www.sei.org/publications/using-economic-and-other-performance-measures-to-evaluate-a-municipal-drought-plan/
- Chicago
- Stockholm Environment Institute. Using Economic and Other Performance Measures to Evaluate a Municipal Drought Plan. 2013. https://www.sei.org/publications/using-economic-and-other-performance-measures-to-evaluate-a-municipal-drought-plan/.
- Wikipedia
- {{cite report |author=Stockholm Environment Institute |title=Using Economic and Other Performance Measures to Evaluate a Municipal Drought Plan |date=10 July 2013 |url=https://www.sei.org/publications/using-economic-and-other-performance-measures-to-evaluate-a-municipal-drought-plan/ |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{stockholmenvironmentinstitute2013using, author = {{Stockholm Environment Institute}}, title = {{Using Economic and Other Performance Measures to Evaluate a Municipal Drought Plan}}, institution = {Stockholm Environment Institute}, year = {2013}, month = jul, url = {https://www.sei.org/publications/using-economic-and-other-performance-measures-to-evaluate-a-municipal-drought-plan/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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