We formalise a dynamic water pricing model as a tool for increasing social surplus in short-term water allocations and long-term water supply planning and investments. We calculate, in monetary terms, the intertemporal risk that current water uses impose on future water availability, termed as the Risk-Adjusted User Cost (RAUC), given multi-period droughts. Our model is calibrated to the water supply system in the Australian Capital Territory. Results show that the RAUC may be a substantial proportion of the cost of supplying water, and incorporating it in the water price can result in long-term welfare gains.

中文翻译：

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动态水定价和风险调整后的用户成本 (RAUC)

我们将动态水定价模型正式化，作为增加短期水资源分配和长期供水规划和投资中的社会盈余的工具。考虑到多期干旱，我们以货币形式计算当前用水对未来可用水量的跨期风险，称为风险调整后的用户成本 (RAUC)。我们的模型针对澳大利亚首都直辖区的供水系统进行了校准。结果表明，RAUC 可能占供水成本的很大一部分，将其纳入水价可以带来长期的福利收益。