OM Job Talk - Karthik Murali , PhD Candidate from University of Illinois, Urbana-Champaign will present a talk in the Operations Management Area
Research Seminars
Academic Areas Operations Management
Karthik Murali, PhD Candidate , University of Illinois, Urbana-Champaign Department of Business Administration
January 8, 2015
| 2:00 PM - 3:30 PM | Thursday
AC 2 Mini Lecture Theatre, Level 2, Hyderabad Campus, Gachibowli, Hyderabad, Hyderabad, India, 500 111
Open to Public
Topic: “Municipal groundwater management: Optimal allocation and control of a renewable natural resource”
Abstract: We study a municipal groundwater management problem in the presence of water transfer opportunities. We establish and characterize threshold polices that govern the export or import decisions of a given municipality. To assess the resulting equilibria in the spirit of the Triple Bottom Line (3BL), we ascertain that exporting (importing) water through a water market (as defined by an exogenous export/import price) is detrimental (beneficial) to both society and the environment within the municipality. In contrast, fixed quantity trading between two municipalities (as defined by an endogenously negotiated export/import price) can have both positive as well as negative impacts from a global 3BL perspective. In particular, typical trading scenarios that occur between municipalities can be detrimental to the environment. Next, we study the implications associated with privatization, and find that a privatized municipality would be more (less) likely to export (import) water compared to its non-privatized counterpart, resulting in negative implications for society locally. However, if exports are banned, privatization can be beneficial to the environment by mitigating the damage caused by the extraction differential, a phenomenon analogous to the green paradox. Moreover, careful and restricted privatization of municipalities can lead to positive global 3BL impacts from fixed quantity trading.
Abstract: We study a municipal groundwater management problem in the presence of water transfer opportunities. We establish and characterize threshold polices that govern the export or import decisions of a given municipality. To assess the resulting equilibria in the spirit of the Triple Bottom Line (3BL), we ascertain that exporting (importing) water through a water market (as defined by an exogenous export/import price) is detrimental (beneficial) to both society and the environment within the municipality. In contrast, fixed quantity trading between two municipalities (as defined by an endogenously negotiated export/import price) can have both positive as well as negative impacts from a global 3BL perspective. In particular, typical trading scenarios that occur between municipalities can be detrimental to the environment. Next, we study the implications associated with privatization, and find that a privatized municipality would be more (less) likely to export (import) water compared to its non-privatized counterpart, resulting in negative implications for society locally. However, if exports are banned, privatization can be beneficial to the environment by mitigating the damage caused by the extraction differential, a phenomenon analogous to the green paradox. Moreover, careful and restricted privatization of municipalities can lead to positive global 3BL impacts from fixed quantity trading.
