Water network design using a multiobjective real options framework
Journal of Optimization
Hindawi Publishing Corporation
Copyright © 2017 Joao Marques et al. This is an open access article distributed under the Creative Commons Attribution License, ˜ which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Water distribution networks (WDNs) are an essential element of urban infrastructure. To achieve a good level of performance, the traditional design of WDNs based on expected future conditions should be replaced by a flexible design, using real options (ROs), that accounts for uncertainty by taking a broader view of possible future options. This work proposes a multiobjective ROs framework that sets out to reduce costs, minimize hydraulic pressure deficiency, and a third objective for minimizing carbon emissions. A multiobjective simulated annealing algorithm is used to identify the Pareto-optimal solutions, thus enabling a tradeoff analysis between solutions. These trade-offs show that a low pressure deficit solution is achieved by increasing investment at a much faster rate after a certain pressure deficit threshold (60 m). Also, the pressure deficits can only be reduced by increasing carbon emissions. Finally, this work also emphasizes the importance of including carbon emissions as a specific objective by comparing the results of the proposed model and another one that did not cover the environmental objective. The results show that it is possible to reduce CO2 for the same level of capital expenditure or the same level of network pressure deficits if carbon emissions are minimized in the optimization process.
This study had the support of Fundac¸ao para a Ci ˜ encia e ˆ Tecnologia (FCT), through the Strategic Project UID/MAR/ 04292/2013 granted to MARE.
This is the final version of the article. Available from the publisher via the DOI in this record.
Vol 2017, Article ID 4373952