Using Real Options in the Optimal Design of Water Distribution Networks

@article{Marques2015UsingRO,
  title={Using Real Options in the Optimal Design of Water Distribution Networks},
  author={Jo{\~a}o Carlos Marques and Maria da Conceiç{\~a}o Cunha and Dragan A. Savi{\'c}},
  journal={Journal of Water Resources Planning and Management},
  year={2015},
  volume={141},
  pages={04014052}
}
AbstractWater supply systems have to satisfy water needs in terms of quantity and quality. The constant changes in urban areas require the regular adaptation of the water supply infrastructure to meet new circumstances. However, decisions to design and operate water networks have to be taken under uncertainty. Flexibility is thus the key to more robust and confident decisions. An approach called real options (ROs) can be used in these situations. This approach makes it possible to use adaptive… 

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