Criticality Analysis of a Water Distribution System Considering Both Economic Consequences and Hydraulic Loss Using Modern Portfolio Theory
1
Department of Civil and Environmental Engineering, University of Utah, Salt Lake City, UT 84112, USA
2
Pacific Northwest National Laboratory, Richland, WA 99354, USA
*
Author to whom correspondence should be addressed.
Water 2019, 11(6), 1222; https://doi.org/10.3390/w11061222
Received: 27 April 2019 / Revised: 28 May 2019 / Accepted: 6 June 2019 / Published: 12 June 2019
(This article belongs to the Special Issue Resilient and Robust Water Distribution Systems: State-of-the-Art and Research Challenges)
This study introduces an approach using Modern Portfolio Theory (MPT) to consider hydraulic resilience and economic consequence resilience of a water distribution system (WDS) to identify critical assets. ECLIPS (Economic Consequence Linked to Interruption in Providing Service), a way to represent loss of water provision as economic loss, is used to measure economic consequence following a reduction of WDS functionality. The approach is demonstrated using a hypothetical WDS and tested for pipe breakage and replacement scenarios using EPANET hydraulic simulations. First, the correlation between hydraulic resilience and economic consequence resilience was investigated to assess differences between two resilience measures for identifying pipe’s criticality for replacement. The results confirmed the two resilience measures exhibited differing responses (covariance = 0.2), suggesting that use of both would provide complementary insight. Results of the MPT analysis identified the benefits of balancing hydraulic and economic consequence resilience measures to yield lower risk. This study provides a practical approach to incorporate economic consequence into planning, design, and research applications identifying critical WDS assets.
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MDPI and ACS Style
Lee, S.; Shin, S.; Judi, D.R.; McPherson, T.; Burian, S.J. Criticality Analysis of a Water Distribution System Considering Both Economic Consequences and Hydraulic Loss Using Modern Portfolio Theory. Water 2019, 11, 1222.
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