Center On Financial Risk in Environmental Systems (CoFiRES)

Recent Publications

Recent Publications involving personnel from the Center on Financial Risk in Environmental Systems, with superscripts denoting graduate students (M = masters; D = doctoral) and Post-doctoral Researchers (P) working in the Center.

2020

Kleiman, R.M, Characklis, G. W., Kern, J. D. and R. Gerlach. “Characterizing Weather-related Biophysical and Financial Risk in Algal Biofuel Production,” Environmental Science & Technology (in review)

Baum, R.D, Herman, J. D. and G. W. Characklis. “Designing index insurance contracts to manage hydrologically-driven financial risks using machine learning,” Water Resources Research (in review)

Hamilton, A. L.D, Characklis, G. W., Reed, P. M. “Managing financial risk tradeoffs for hydropower generation using snowpack-based index contracts,” Water Resources Research (in review)

Gupta, R. S., Hamilton, A. L.D, Reed, P. M. and G. W. Characklis. “Can Modern Multi-Objective Evolutionary Algorithms Discover High-Dimensional Financial Risk Portfolio Tradeoffs for Snow-Dominated Water-Energy Systems?”, Advances in Water Resources (in press)

Su, Y. D, Kern, J. D., Reed, P. M. and G. W. Characklis. “Compound Hydrometeorological Extremes Acting Across Multiple Timescales Drive Volatility in California Electricity Market Prices and Emissions,” Applied Energy (in press)

Trindade, B., Reed, P. M., Gold, D. F., Zeff, H. B.P and G. W. Characklis (2020).  Water Pathways: An open source stochastic simulation framework for water supply portfolio management and infrastructure investments, Environmental Modelling and Software, 104772, doi:https://doi.org/10.1016/j.envsoft.2020.104772.

Denaro, S.P, Castelletti, A., Giuliani, M. and G. W. Characklis (2020). “Insurance portfolio diversification through bundling for competing agents exposed to uncorrelated drought and flood risks,” Water Resources Research , 56, e2019WR026443. https://doi.org/10.1029/2019WR026443

Zeff, H. B.P, Characklis, G. W. and W. N. Thurman (2020). “How do price surcharges impact water utility incentives to pursue alternative supplies during drought,” Journal of Water Resources Planning and Management, 146(6), doi.org/10.1061/(ASCE)WR.1943-5452.0001228

Meyer, E. S.D, Foster, B. F.D, Characklis, G. W., Brown, C. M. and A. J. Yates (2020). “Integrating physical and financial approaches to manage environmental financial risk on the Great Lakes,” Water Resources Research, 56, e2019WR024853, doi.org/10.1029/2019WR024853

Su, Y. D, Kern, J. D., Denaro, S. P, Hill, J. M, Reed, P. M. Sun, Y., Cohen, J. and G. W. Characklis (2020). “An open source model for quantifying risks in bulk electric power systems from spatially and temporally correlated hydrometeorological processes,” Environmental Modelling and Software, 126, doi.org/10.1016/j.envsoft.2020.104667

Baum, R.D and G. W. Characklis (2020). “Mitigating drought-related financial risks for water utilities via integration of risk pooling and reinsurance,” Journal of Water Resources Planning and Management, 146(6): 05020007, doi.org/10.1061/(ASCE)WR.1943-5452.0001202

2019

Gorelick, D. E.D, Lin, L., Zeff, H. B.P, Kim, Y., Vose, J. M., Coulston, J. W., Wear, D. N., Band, L. E., Reed, P. M. and G. W. Characklis (2019). “Accounting for adaptive water supply management when quantifying climate and landcover change vulnerability,” Water Resources Research, 56, e2019WR025614, doi.org/10.1029/2019WR025614

Gold, D. F., Reed, P. M., Trindade, B. C. and G. W. Characklis (2019). “Conflicts in Coalitions: Navigating multi-city robustness conflicts to discover cooperative safe operating spaces for regional water supply portfolios,” Water Resources Research 55, pp. 9024–9050, doi.org/10.1029/2019WR025462

Trindade, B., Reed, P. M. and G. W. Characklis (2019). “Deeply Uncertain Pathways: Integrated Multi-City Regional Water Supply Infrastructure Investment and Portfolio Management,” Advances in Water Resources, 134, 103442, doi.org/10.1016/j.advwatres.2019.103442

Gorelick, D. E.D, Zeff, H. B.P, Hughes, J., Eskaf, S. and G. W. Characklis (2019). “Benefits and tradeoffs of cooperation: exploring the relative merits of treatment and capacity sharing agreements between water utilities,” Journal of the American Water Works Association, 111(9), pp 26-40. doi.org/10.1002/awwa.1359

Zeff, H. B.P, Kaczan, D., Characklis, G. W., Jeuland, M. and B. Murray (2019). “The potential benefits of groundwater trading and reformed water rights in the Diamond Valley, Nevada,” Journal of Water Resources Planning and Management, 145(6), doi.org:10.1061/(ASCE)WR.1943-5452.0001032

2018

Kern, J. D.R, Gorelick, D. E.D, Characklis, G. W. and C. M. Macklin (2018). “Multi-Objective Optimal Siting of Algal Biofuel Production with Municipal Wastewater Treatment in Watersheds with Nutrient Trading Markets,” Journal of Water Resources Planning and Management, doi.org/10.1061/(ASCE)WR.1943-5452.0001018.

Gorelick, D. E.M, Zeff, H. B.P, Characklis, G. W. and P. M. Reed (2018). “Integrating raw water transfers into an Eastern United States management context,” Journal of Water Resources Planning and Management, 144 (9), doi.org/10.1061/(ASCE)WR.1943-5452.0000966

Baum R.D, Characklis, G. W. and M. L. Serre (2018). “Effects of Geographic Diversification on Risk Pooling to Mitigate Drought-Related Financial Losses for Water Utilities,” Water Resources Research, 54, doi.org/10.1002/2017WR021468

Mozenter, Z. D., Yates, A. J., Schnier, K. A., Hughes, J. A. and G. W. Characklis. (2018) “Understanding Water Utility Attitudes Toward Water Transfers and Risk: Pretest Results,” Journal of Water Resources Planning and Management. doi: 10.1061/(ASCE)WR.1943-5452.0000895

Baum, R.D, Characklis, G.W., and M. L.Serre. (2018) “Effects of Geographic Diversification on Risk Pooling to Mitigate Drought-Related Financial Losses for Water Utiliites”, Water Resources Research, doi.org/10.1002/2017WR021468

2017

Denaro, S., Castelletti, A., Giuliani, M. and G. W. Characklis. (2017) “Fostering Cooperation in Power Asymmetrical Water Systems by Use of Direct Release Rules and Indexbased Insurance Schemes,” Advances in Water Resources, dx.doi.org/10.1016/j.advwatres.2017.09.021

Kern, J. D.R and G. W. Characklis. “Evaluating the Physical and Financial Vulnerability of Power Systems to Drought Under Climate Uncertainty and an Evolving Generation Mix,” Environmental Science & Technology, 51, pp. 8815-8823, doi:10.1021/acs.est.6b05460.

Trindade, B. C., Reed, P. M., Herman, J. D., Zeff, H. B.D and G. W. Characklis (2017). “Reducing Regional Drought Vulnerabilities and Multi-City Robustness Conflicts Using Many-Objective Optimization Under Deep Uncertainty,” Advances in Water Resources, 104, pp. 195-209, doi: 10.1016/j.advwatres.2017.03.023.

Su, Y.M, Kern, J. D.R and G. W. Characklis (2017). “The Impact of Wind Power Growth and Hydrological Uncertainty on Financial Losses from Oversupply Events in Hydropower-dominated Systems, Applied Energy, 194, pp. 172-183, doi:10.1016/j.apenergy.2017.02.067.

Meyer, E. S.D, Characklis, G. W. and C. M. Brown (2017). “Evaluating Financial Risk Management Strategies Under Climate Change for Hydropower Producers on the Great Lakes,” Water Resources Research 53, doi:10.1002/2016WR019889.

2016

Kern, J. D.R, Hise, A. M.M, Characklis, G. W., Gerlach, R., Viamajala, S. and R. D. Gardner (2016). “Using Life-Cycle Assessment and Techno-Economic Analysis in a Real Options Framework to Inform the Design of Algal Biofuel Production Facilities,” Bioresource Technology, 225, doi.org/10.1016/j.biortech.2016.11.116.

Kern, J. D.P and G. W. Characklis (2016). “Horizontal Hydraulic Fracturing, Low Natural Gas Prices and the Financial Cost of Ramp Rate Restrictions at Hydroelectric Dams,” Energy Economics, 61, doi.org/10.1016/j.eneco.2016.12.002.

Zeff, H. B.D, , Herman, J. D., Reed, P. M. and G. W. Characklis (2016). “Cooperative Drought Adaptation: Integrating Infrastructure Development, Conservation and Water Transfers into Adaptive Policy Pathways,” Water Resources Research 52, doi:10.1002/2016WR018771.

Herman, J. D., Zeff, H. B.D, Lamontagne, J. R., Reed, P. M. and G. W. Characklis (2016). “Synthetic Drought Scenario Generation to Support Bottom-Up Water Supply Vulnerability Assessments,” Journal of Water Resources Planning and Management, DOI: 10.1061/(ASCE)WR.1943-5452.0000701.

Hise, A. M.M, Characklis, G. W., Kern, J. D.P, Gerlach, R., Viamajala, S., Gardner, R. D. and A. Vadlamani (2016). “Evaluating the Relative Impacts of Operational and Financial Factors on the Competitiveness of an Algal Biofuel Production Facility,” Bioresource Technology, 220, pp. 271-281. doi:10.1016/j.biortech.2016.08.050.

Meyer, E. S.D, Characklis, G. W., Brown, C. M. and P. Moody (2016). “Hedging the Financial Risk from Water Scarcity for Great Lakes Shipping,” Water Resources Research, 52, pp. 227-245, doi:10.1002/2015WR017855.

2015

Brown, C. M., Lund, J. R., Cai, X., Reed, P. M., Zagona, E. A., Ostfeld, A., Hall, J. W., Characklis, G. W., Yu, W. and L. Brekke (2015). “The Future of Water Resource Systems Analysis: Toward a Scientific Framework for Sustainable Water Management,” Water Resources Research, 51, doi:10.1002/2015WR017114.

Foster, B. F.M, Kern, J. D.P and G. W. Characklis (2015). “Mitigating Hydrologic Financial Risk in Hydropower Generation Using Index-Based Financial Instruments,” Water Resources and Economics, 10, pp. 45-67, doi:10.1016/j.wre.2015.04.001.

Kern, J. D.D, Characklis, G. W. and B. F. Foster M (2015) “Natural Gas Price Uncertainty and the Cost Effectiveness of Hedging Against Low Hydropower Revenues Caused by Drought,” Water Resources Research, 51, doi:10.1002/2014WR016533.

Herman, J. D., Reed, P. M., Zeff, H. B.D and G. W. Characklis (2015). “How Should Robustness be Defined for Water Systems Planning Under Change,” Journal of Water Resources Planning and Management, 10.1061/(ASCE)WR.1943-5452.0000509, 04015012.

2014

Herman, J. D., Zeff, H. B.D , Reed, P. M. and G. W. Characklis (2014). “Beyond Optimality: Multi-Stakeholder Robustness Tradeoffs for Regional Water Portfolio Planning Under Uncertainty, Water Resources Research, doi:10.1002/2014WR015338

Kern, J. D.D., Patino-Echeverri, D. and G. W. Characklis (2014). “The Impacts of Wind Power Integration on Sub-Daily Variation in River Flows Downstream of Hydroelectric Dams,” Environmental Science & Technology, doi:10.1021/es405437h.

Zeff, H.B.D, Kasprzyk, J. R., Herman, J. D., Reed, P. M. and G. W. Characklis (2014). “Navigating Financial and Supply Reliability Tradeoffs in Regional Drought Portfolios,” Water Resources Research, 50, doi:10.1002/2013WR015126.

Kern, J. D.D, Patino-Echeverri, D. and G. W. Characklis (2014). “An Integrated Reservoir Power System Model for Evaluating the Impacts of Wind Integration on Hydropower Resources,” Renewable Energy, 71, pp. 553-562.

Caldwell, C.M . and G. W. Characklis (2014). “Impact of Contract Structure and Risk Aversion on Inter-utility Water Transfer Agreements,” Journal of Water Resources Planning and Management, 140(1), pp. 100-111.