Abstract
In this paper, a conditional value-at-risk based factorial stochastic programming approach is proposed to address random uncertainties and their interactions in a systematic manner. Random variables can be addressed through a risk-averse method within the two-stage stochastic programming framework. Interactions between random variables are examined through conducting a multi-level factorial analysis. The proposed approach is applied to a case study of water resources management to demonstrate its validity and applicability. A number of decision alternatives are obtained under different risk coefficients, which are useful for decision-makers to make sound water management plan and to perform an in-depth analysis of trade-offs between economic objectives and associated risks. Results obtained from the factorial experiment uncover the multi-level interactions between uncertain parameters and their contributions to the variability of net benefits. The performance of the proposed approach is compared with a factorial two-stage stochastic programming method.
Original language | English |
---|---|
Pages (from-to) | 1543-1553 |
Number of pages | 11 |
Journal | Stochastic Environmental Research and Risk Assessment |
Volume | 31 |
Issue number | 6 |
DOIs | |
Publication status | Published - 1 Aug 2017 |
Externally published | Yes |
Keywords
- CVaR
- Factorial design
- Interactive uncertainties
- Stochastic programming
- Water resources allocation
- Water system
ASJC Scopus subject areas
- Environmental Engineering
- Environmental Chemistry
- Water Science and Technology
- Safety, Risk, Reliability and Quality
- General Environmental Science