Water Supply Portfolio Planning and Policy Evaluation under Climate Change: A Case Study of Central Taiwan

Abstract

The present study examines the optimal water supply portfolio under the impact of climate change constructed by the authors previously. It incorporates feasibility planning for water supply projects, assesses a feasible water supply portfolio for central Taiwan, and uses the shadow price method to assess the rationality of the compensation policy for transferring agricultural water to ensure water supply security for the industrial sector. The study finds that Changhua and Yunlin have the highest per-unit costs of raw water, and the Nantou region has the highest carbon emission coefficient (carbon footprint) per unit of water produced. The cumulative value (2021–2031) of the water resources policy to reallocate agricultural water to achieve water supply security is about TWD 15.904–31.13 billion. The shadow price of industrial water is about TWD 40.18/cubic meter. Therefore, a compensation price for agricultural water transfer of less than TWD 40.18/cubic meter represents a rational policy.