Author(s): Hae Na Yoon; Sun Hoo Ihm; Young-Oh Kim; Gi Joo Kim; Seung Beom Seo
Linked Author(s): Gi Joo Kim, Young-Oh Kim
Keywords: Climate change; Decision Making; Real Option Analysis; Robust Optimization
Abstract: For the last two decades, there have been advancement in theories that suggest how to make robust and adaptive decisions under uncertainties regarding climate change. This study applies two novel decisionmaking methods such as real option analysis (ROA) and robust optimization (RO) to solve a severe water shortage problem for a multipurpose dam in Korea. The former method re-evaluated the economic feasibility of a large conduit project that transfers water from a neighbor basin while the latter method proposed revising operations of the dam that can perform satisfactorily for a wider range of uncertainty.
Year: 2018