scholarly journals Duality Based Risk Mitigation Method for Construction of Joint Hydro-Wind Coordination Short-Run Marginal Cost Curves

Energies ◽  
2018 ◽  
Vol 11 (5) ◽  
pp. 1254 ◽  
Author(s):  
Perica Ilak ◽  
Ivan Rajšl ◽  
Josip Đaković ◽  
Marko Delimar
Keyword(s):  
Marginal Cost ◽  
Risk Mitigation ◽  
Cost Curves ◽  
Short Run ◽  
Marginal Cost Curves

scholarly journals Duality Based Risk Mitigation Method for Construction of Joint Hydro-Wind Coordination Short-Run Marginal Cost Curves

2018 ◽  
Author(s):  
Perica Ilak ◽  
Ivan Rajšl ◽  
Josip Đaković ◽  
Marko Delimar
Keyword(s):  
Marginal Cost ◽  
Wind Farm ◽  
Risk Mitigation ◽  
Shadow Price ◽  
Real Life ◽  
Economic Feasibility ◽  
Cost Curve ◽  
Cost Curves ◽  
Short Run ◽  
Marginal Cost Curves

This study analyses the short-run hydro generation scheduling for the wind power differences from the contracted schedule. The approach for construction of the joint short-run marginal cost curve for the hydro-wind coordinated generation is proposed and applied on the real example. This joint short-run marginal cost (SRMC) curve is important for its participation in the energy markets and for economic feasibility assessment of such coordination. The approach credibly describes the short-run marginal costs which this coordination bears in “real life”. The approach is based on the duality framework of a convex programming and as a novelty combines the shadow price of risk mitigation capability and the water shadow price. The proposed approach is formulated as a stochastic linear program and tested on the case of the Vinodol hydropower system and the wind farm Vrataruša in Croatia. The result of the case study is a family of 24 joint short-run marginal cost curves.

scholarly journals Retrospectives: The Law of Diminishing Returns

1993 ◽  
Vol 7 (3) ◽  
pp. 185-192 ◽  
Author(s):  
Stanley L Brue
Keyword(s):  
Economic Analysis ◽  
Marginal Cost ◽  
Economic Implications ◽  
Cost Curves ◽  
Diminishing Returns ◽  
Short Run ◽  
History Of ◽  
The Law ◽  
Introductory Economics ◽  
Marginal Cost Curves

From introductory economics to theoretical papers, the law of diminishing returns is a part of every economist's tool kit. But the evolution of this law in the history of economic analysis reveals more complexity than is perhaps generally understood. Even among those most responsible for its evolution, the law has been loosely defined, and many so-called “proofs” of the law have been weak and incomplete. Moreover, those who expounded the law and its economic implications rarely offered empirical evidence to support it. In fact, economists have offered alternative explanations for rising short-run marginal cost curves and other implications of the law of diminishing returns. This last point raises an interesting question: Have economists used the law of diminishing returns simply for convenience, or is the law fundamental to economic analysis?

scholarly journals Marginal cost curves for water footprint reduction in irrigated agriculture: guiding a cost-effective reduction of crop water consumption to a permit or benchmark level

2017 ◽  
Vol 21 (7) ◽  
pp. 3507-3524 ◽  
Author(s):  
Abebe D. Chukalla ◽  
Maarten S. Krol ◽  
Arjen Y. Hoekstra
Keyword(s):  
Deficit Irrigation ◽  
Marginal Cost ◽  
Water Footprint ◽  
Cost Effective ◽  
Subsurface Drip Irrigation ◽  
Irrigation Strategy ◽  
Cost Curves ◽  
Subsurface Drip ◽  
The Cost ◽  
Marginal Cost Curves

Abstract. Reducing the water footprint (WF) of the process of growing irrigated crops is an indispensable element in water management, particularly in water-scarce areas. To achieve this, information on marginal cost curves (MCCs) that rank management packages according to their cost-effectiveness to reduce the WF need to support the decision making. MCCs enable the estimation of the cost associated with a certain WF reduction target, e.g. towards a given WF permit (expressed in m3  ha−1 per season) or to a certain WF benchmark (expressed in m3  t−1 of crop). This paper aims to develop MCCs for WF reduction for a range of selected cases. AquaCrop, a soil-water-balance and crop-growth model, is used to estimate the effect of different management packages on evapotranspiration and crop yield and thus the WF of crop production. A management package is defined as a specific combination of management practices: irrigation technique (furrow, sprinkler, drip or subsurface drip); irrigation strategy (full or deficit irrigation); and mulching practice (no, organic or synthetic mulching). The annual average cost for each management package is estimated as the annualized capital cost plus the annual costs of maintenance and operations (i.e. costs of water, energy and labour). Different cases are considered, including three crops (maize, tomato and potato); four types of environment (humid in UK, sub-humid in Italy, semi-arid in Spain and arid in Israel); three hydrologic years (wet, normal and dry years) and three soil types (loam, silty clay loam and sandy loam). For each crop, alternative WF reduction pathways were developed, after which the most cost-effective pathway was selected to develop the MCC for WF reduction. When aiming at WF reduction one can best improve the irrigation strategy first, next the mulching practice and finally the irrigation technique. Moving from a full to deficit irrigation strategy is found to be a no-regret measure: it reduces the WF by reducing water consumption at negligible yield reduction while reducing the cost for irrigation water and the associated costs for energy and labour. Next, moving from no to organic mulching has a high cost-effectiveness, reducing the WF significantly at low cost. Finally, changing from sprinkler or furrow to drip or subsurface drip irrigation reduces the WF, but at a significant cost.

scholarly journals Marginal cost curves for water footprint reduction in irrigated agriculture: guiding a cost-effective reduction of crop water consumption to a benchmark or permit level

2017 ◽  
Author(s):  
Abebe D. Chukalla ◽  
Maarten S. Krol ◽  
Arjen Y. Hoekstra
Keyword(s):  
Cost Effectiveness ◽  
Water Consumption ◽  
Deficit Irrigation ◽  
Marginal Cost ◽  
Water Footprint ◽  
Cost Effective ◽  
Irrigation Strategy ◽  
Cost Curves ◽  
The Cost ◽  
Marginal Cost Curves

Abstract. Reducing the water footprint (WF) of the process of growing irrigated crop is an indispensable element in water management, particularly in water-scarce areas. To achieve this, information on marginal cost curves (MCCs) that rank management packages according to their cost-effectiveness to reduce the WF need to support the decision making. MCCs enable the estimation of the cost associated with a certain WF reduction target, e.g. towards a given WF permit (expressed in m3 per hectare per season) or to a certain WF benchmark (expressed in m3 per tonne of crop). This paper aims to develop MCCs for WF reduction for a range of selected cases. The soil-water-balance and crop-growth model, AquaCrop, is used to estimate the effect on evapotranspiration and crop yield and thus WF of crop production due to different management packages. A management package is defined as specific combination of management practices: irrigation technique (furrow, sprinkler, drip or subsurface drip); irrigation strategy (full or deficit irrigation); and mulching practice (no, organic or synthetic mulching). The annual average cost for each management package is estimated as the annualised capital cost plus the annual costs of maintenance and operations (i.e. costs of water, energy, and labour). Different cases is considered, including: three crops (maize, tomato and potato); four types of environment; three hydrologic years (wet, normal and dry years) and three soil types (loam, silty clay loam and sandy loam). For each crop, alternative WF reduction pathways were developed, after which the most cost-effective pathway was selected to develop the MCC for WF reduction. When aiming at WF reduction one can best improve the irrigation strategy first, next the mulching practice and finally the irrigation technique. Moving from a full to deficit irrigation strategy is found to be a no-regret measure: it reduces the WF by reducing water consumption at negligible yield reduction, while reducing the cost for irrigation water and the associated costs for energy and labour. Next, moving from no to organic mulching has a high cost-effectiveness, reducing the WF significantly at low cost. Finally, changing from sprinkler or furrow to drip or sub-surface drip irrigation reduces the WF but at significant cost.

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