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Analysis of the cost effectiveness of alternative policies and technologies to manage water extractions by the oil sands sector along the lower Athabasca River

The Lower Athabasca Water Management Framework limits water extractions by the oil sands industry near Fort McMurray, Alberta. To increase water-use efficiency and minimise the cost of water restrictions, several policy and technology options were developed and assessed using quantitative and qualitative methods. Selected options were the policies of water trade and pricing with refund, and the technologies of storage, and consolidated tailings and increased recycling. Options were designed based on year 2020 demand and assessed relative to prior allocation. Using linear programming and static optimisation, it is shown that an off-stream storage sized to avoid water restrictions, in combination with efficient water allocation (e.g. water trade), is most cost-effective, although provides no ongoing incentive to increase water-use efficiency. Only the policy options provide equal incentives across firms to increase efficiency. To achieve both objectives of increased water-use efficiency and minimised costs, a combined policy and technology approach is recommended. / Agricultural and Resource Economics

Identiferoai:union.ndltd.org:LACETR/oai:collectionscanada.gc.ca:AEU.10048/507
Date11 1900
CreatorsMannix, Amy Elinor
ContributorsDridi, Chokri (Rural Economy), Adamowicz, Wiktor (Rural Economy), Chakravorty, Ujjayant (Economics and School of Business)
Source SetsLibrary and Archives Canada ETDs Repository / Centre d'archives des thèses électroniques de Bibliothèque et Archives Canada
LanguageEnglish
Detected LanguageEnglish
TypeThesis
Format2479544 bytes, application/pdf
RelationMannix, A.E., Dridi, C. and W.L. Adamowicz. 2009. Water Availability in the Oil Sands under projections of increasing demands and a changing climate: An assessment of the Lower Athabasca Water Management Framework (Phase 1). Canadian Water Resources Journal. (accepted for publication)

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