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John Raffensperger

John Raffensperger

I do not use ResearchGate. If you would like one of my papers, reach out to me at john.raffensperger@gmail.com.

About

66
Publications
6,215
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565
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Introduction
Friends, colleagues, I almost never use this website. If you want to ask me for a copy of one of my papers, please write to me directly at john.raffensperger@gmail.com.

Publications

Publications (66)
Article
Full-text available
Existing emissions trading system (ETS) designs inhibit emissions but do not constrain warming to any fixed level, preventing certainty of the global path of warming. Instead, they have the indirect objective of reducing emissions. They provide poor future price information. And they have high transaction costs for implementation, requiring treatie...
Preprint
Full-text available
In this paper, I introduce a new emissions trading system (ETS) design to address the problems with existing ETSs and carbon taxes. First, existing ETS designs inhibit emissions but do not constrain warming to any set level. Existing ETSs have the indirect objective of reducing emissions instead of directly reducing warming. Even a global mechanism...
Chapter
This chapter focuses on the optimization model that is at the heart of the smart market for water, expanding on the model introduced in Sect. 6. 6. We first contrast net pool markets with gross pool markets, and the implications of those market designs. The following sections provide market model formulations for specific hydrological cases: a basi...
Chapter
This chapter gives examples, based on hypothetical hydrology data and real hydrology data. The first section describes how marginal cost pricing can help better allocate water. The second section contrasts assignment of water allocation with assignment of environmental impact quota . The third section covers different ways to scale allocations duri...
Chapter
This chapter describes a wide range of comments and objections about water markets generally, and our smart market design specifically. The first section describes our experience in collecting these comments. The remaining sections then group the comments, along with our responses to those comments. The comments included objections to water markets...
Chapter
The purpose of this chapter is to help the reader make the transition from optimization to the smart market. The chapter reviews some of the history of smart markets, with early examples of and proposals for smart markets. We describe the modern electricity market in some detail. The final two sections describe early research on smart markets for w...
Chapter
This chapter describes the process of converting users’ rights to tradable allocations. The first section discusses the nature of the water rights in the smart market, why initial rights are important, and whether this conversion is privatization. The second section discusses the need for the new license system to be able to manage new entrants. Th...
Chapter
This chapter describes the roles of market participants, starting with the market manager. The chapter assumes that the prerequisites, or extra-market considerations, for market implementation are already in place. It discusses the participants’ bids and the bidding process, the market manager’s transaction and allocation database , and the market-...
Chapter
The purpose of this chapter is to review some economic fundamentals to market approaches, to point to the extensive literature on markets by water policy analysts, and to examine applications of water markets worldwide. This chapter first reviews the problem of hydrological externalities , the Coase Theorem, and why the Coase Theorem does not usual...
Chapter
This chapter describes six prerequisites for a water market. The first five of these prerequisites should be met even if the policymaker does not have the goal of an active market; they are simply good management. First, stakeholders should share trust. Second, the regulator must have a hydrological model that describes the water flows with a level...
Chapter
To this point, the smart market models have been deterministic, using one estimate of future inflows into the catchment. This chapter explores sources of uncertainty and discusses which of those the market should directly address and which it should not, why the deterministic approach may not calculate the best allocation, and ways to address uncer...
Chapter
Many people fear that a water market will lead to monopolization, and, for this reason, believe that government should not implement a market. In this chapter, we aim to convince the reader that a water market is unlikely to result in monopolization. We acknowledge that researchers have not fully examined the issue of market power, but we think tha...
Chapter
Smart markets for water can benefit communities around the world. Some places will benefit more than others, and implementing the market will be easier in some places than in others. Overcoming the inertia of existing systems will be difficult. An initial focus on key users with small steps toward change will ease implementation. Every new idea lea...
Chapter
This chapter reveals the problem of water allocation as a joint problem of hydrological interaction and externalities. The chapter describes the reason to use markets to allocate water. The chapter explains why most current methods of water allocation have a high transaction cost, and summarizes the problems that need to be solved to improve water...
Chapter
This chapter discusses smart markets for water quality, sediment, and impervious cover. The market designs for these resources are similar to the design for a water quantity market. Implementers must work through prerequisites, including setting initial allocations, which may need to be subject to scaling of some kind for revenue neutrality. But th...
Chapter
The purpose of this chapter is to give the reader an understanding of water, water simulation models, and optimization. We briefly discuss different types of hydrological optimization, which will lead the reader to the smart market. After that, the chapter introduces the operations research method of linear programming. The point of this section is...
Article
Nutrient trading and constructed wetlands are widely discussed solutions to reduce nutrient pollution. Nutrient markets usually include agricultural nonpoint sources and municipal and industrial point sources, but these markets rarely include investors who construct wetlands to sell nutrient reduction credits. We propose a new market design for tra...
Book
Why is trade in wholesale water so rare, when markets can actively trade bread, tractors, and electricity? This book shows that water markets fail because of high transaction costs, resulting in inefficient allocations and unpredictable environmental effects. To overcome these obstacles, this book proposes a trading mechanism called a smart market....
Article
Full-text available
It is widely recognised that the current abstraction licensing system in England needs to be reformed to meet the challenges of future environmental flow requirements, likely increases in water demands and climate change. The UK Government has committed to the reform of the abstraction regime in England and work is underway, including the Welsh Gov...
Article
Sediment discharge from erosion, urban runoff, and construction can cause environmental degradation. Governments try to regulate sediment, but the regulatory approach is costly to land owners. In principle, a market-based system could reduce costs, but the associated transaction costs are far too high, because market participants must find trading...
Chapter
All nutrients can be obtained from food, without dietary supplements. Adding dietary supplements could reduce the cost of the diet only marginally, and only if the supplements complement the diet correctly. Most people could have a better diet and at lower cost simply by making different food choices.
Article
Nitrate discharges from diffuse agricultural sources significantly contribute to groundwater and surface water pollution. Tradable permit programs have been proposed as a means of controlling nitrate emissions efficiently, but trading is complicated by the dispersed and delayed effects of the diffuse pollution. Hence, markets in nitrate discharge p...
Article
The amount of available groundwater in a catchment changes quickly, and the amount of water that users can take sustainably depends on where and when it is taken. However, rights to water tend to be fixed, and obtaining rights to water incurs high transaction costs. As a result, water catchments are over-allocated worldwide. In this paper, I show h...
Article
Concern is growing worldwide that climate change will lead to drier climates in many regions and in turn diminish water resources. To protect these limited resources, users may need to shift water use to more economically productive areas. However, changing the land use associated with water permits can be quite difficult, because water is not easi...
Article
Full-text available
When farmland or undeveloped ground is covered over, runoff can cause environmental damage and flood risk. Policymakers want to compare the economic improvement of new development to the costs produced by the associated environmental impacts. In this paper, we propose a smart market in impervious cover. A smart market is a periodic auction which is...
Article
Full-text available
Communities and government world-wide have growing concern over the protection of groundwater resources. We have been studying smart markets as a tool to efficiently allocate groundwater, to protect against groundwater depletion, and to prevent damage to environmentally sensitive areas. In this paper, a smart market is proposed for the combination...
Article
Full-text available
Water pollution from non‐point sources is a global environmental concern. Economists propose tradable permit systems as a solution, but they are difficult to implement due to the nature of non‐point sources. We present a pollution offset system for trading non‐point source water pollution permits. Conventional pollution offset systems suffer from t...
Article
Efficient management of water requires balancing environmental needs, externality considerations, and economic efficiency. Toward that end, this paper presents a deterministic linear program that could be used to operate a smart spot market for groundwater. The market design uses the existing hydrological programs MODFLOW and GWM along with standar...
Article
This paper introduces two new one-dimensional cutting stock models: the generalized assortment problem (GAP) and the best cutting stock length (BSL) problem. These new models provide the potential to reduce waste to values lower than the optimum of current models, under the right management circumstances. In the GAP, management has a standard lengt...
Article
Full-text available
This research aims to investigate various sustainability issues in the New Zealand wine industry. Namely, the study examines (1) what drives the industry to engage in sustainability practices, (2) the role of stakeholders in the company's decision-making, and (3) environmental practices related to water utilization, chemicals and waste management....
Article
New Zealand’s hydrologists were surveyed to determine what information they believe is lacking and what information they believe is important for more effective management and allocation of New Zealand’s freshwater supply. Two research questions and five qualitative questions related to information needs and water policy were administered to 79 hyd...
Article
Full-text available
Excess nutrients in surface water systems cause many environmental problems. Some governments restrict nutrient overloading through nutrient permits. Economic theory states that the best allocation of such permits is made via trading. However, nutrient permit trading is complicated by two factors associated especially with non-point sources: (1) ti...
Article
Current prescriptions for spreadsheet style specify modular separation of data, calcu1ation and output, based on the notion that writing a spreadsheet is like writing a computer program. Instead of a computer programming style, this article examines rules of style for text, graphics, and mathematics. Much 'common wisdom' in spreadsheets contradicts...
Article
This paper shows how to measure the readiness for a military unit, with the example of a tank battalion. We first show that training readiness can be measured by the minimum makespan of the training schedule. We call this the train-up problem. Second, the effect of a peacetime budget on the training readiness can be calculated by solving the readin...
Article
Full-text available
In this paper, we develop two novel pricing methods for solving an integer program. We demonstrate the methods by solving an integrated commercial fishery planning model (IFPM). In this problem, a fishery manager must schedule fishing trawlers (determine when and where the trawlers should go fishing, and when the trawlers should return the caught f...
Article
This article describes the use of operations research methods to study the minimum possible cost of a low-carbohydrate diet. The study compares this cost to the minimum cost of a diet with no limitation on carbohydrate. The rationale for this study is the popularity of the low-carbohydrate diets and their perceived high cost. The method used was an...
Article
This article makes a modest step toward a quantitative measure of the work required to solve a specific kind of problem: a given spreadsheet design. The method relies on a measure that we define called constructive complexity, which is the number of keystrokes required to write a spreadsheet for a given computational task, as a function of the inpu...
Article
Full-text available
This report presents a proposed smart market for transferable discharge credits model, for managing and improving sediment discharge from catchments in the Auckland Region.
Article
Full-text available
We study the integrated fishery planning problem (IFP). In this problem, a fishery manager must schedule fishing trawlers to determine when and where the trawlers should go fishing and when the trawlers should return the caught fish to the factory. The manager must then decide how to process the fish into products at the factory. The objective is t...
Article
EXTENDED ABSTRACT We propose a smart market system for ground water, based on an analytical hydrology model and a linear program (LP). A smart market is an auction-based market that is cleared with the assistance of computer models, which manage complexities that an ordinary market or auction cannot. In this case, the models address the environment...
Article
In this paper, we discuss the use of AMPL in teaching students about the traveling salesman problem (TSP). The paper gives suggestions for pedagogical devices, homework assignments and exams, PowerPoint presen-tations, and a convenient package of AMPL models and scripts. The AMPL files include different formulations for the TSP, its relaxations, sc...
Article
The no-fit polygon (NFP) is the set of feasible locations that one polygon may take with respect to another polygon, such that the polygons do not overlap. Feasible locations are required for most of the solutions to two-dimensional packing problems, and also for other problems such as robot motion planning.Efficient methods to calculate the NFP of...
Article
We show how to set up a physically and economically correct market for ground and surface water, using a modified version of MODMAN. MODMAN uses MODFLOW to produce a response matrix, which in turn becomes part of a linear program (LP). Greenwald showed how to use this mechanism to optimize various groundwater problems. We show how to use MODMAN to...
Article
This paper proposes a design for a fresh water spot market. The design has the groundwater of the New Zealand Canterbury Plains in mind, but would be appropriate for almost any region. In our market design, a market manager will operate a hydrology model and a Linear Program (LP), based on widely available software. The hydrogeology model calculate...
Article
T his paper has two purposes: to help explain dynamic programs (DP) to students who have no background in procedural languages, and to quantitatively motivate good spreadsheet designs that can be developed and modified easily. Teachers and practitioners could benefit from using spreadsheets to solve the common problems that are suited to DP. We giv...
Article
In this paper, we apply column splitting to the Travelling Salesman Problem (TSP), producing two different decompositions. The lower bounds on these models are at least as good as the standard Held-Karp lower bound, and we give examples with strictly better lower bounds. The bounds appear to be equivalent to the standard Dantzig, Fulkerson & Johnso...
Conference Paper
TR-COSC 05/03 We describe a modelling language, called XML:LP, for presenting linear and integer programs in XML, with related tools for displaying models and their solutions in web browsers. Our tools dynamically generate different model or solution views by applying different style sheets to the same model file. Graphical views help users compreh...
Article
The U.S. Navy Prowler aircraft is designed for electronic surveillance and countermeasures. In this paper, we describe the problem of scheduling Prowler crew training, and we present two integer programming models to solve it. The first model maximizes the number of aviators trained above 75% in each mission area, subject to the available number of...
Article
Current prescriptions for spreadsheet style specify modular separation of data, calculation, and output, based on the notion that writing a spreadsheet is like writing a computer program. Instead of a computer programming style, this article examines rules of style for text, graphics, and mathematics. Based on the rules for these established and we...
Article
Current measures of military readiness are inadequate. Their only incentive is more is better. They are subject to gaming between subordinates and superiors. They can mislead planners even when they are accurate. They do not tell precisely when a unit can be ready, nor which units to send to a conflict. They give no information about how much readi...
Article
House staff stipends and other costs related to maintaining a residency are listed on hospital budgets as "education." This has become a tempting target for hospital administrators and third-party payors, who ask, "Should the patient pay for medical education?" We have studied the workload of house officers on a typical pediatric surgical service i...
Article
Dynamic programming (DP) has long been used to solve optimisation problems. Though sometimes suffering from the curse of dimensionality, DP has a dowry of integrality. Integer programming (IP) often suffers interminable branch and bound, but brings the gift of flexibility. DP tends to be hard to program, but IP allows us to easily write models that...
Article
In a recent paper in this journal, Mandel, Donlan and Armstrong (2009) proposed a derivative intended to incentivise private enterprise to improve populations of selected species. Government would issue a bond to investors, who would receive interest on the bond, depending on the species population. Should the population fall below a threshold, the...
Article
Mamer & McBride recently introduced a new decomposition algorithm for linear programming. They call this decomposition algorithm decomposition-based pricing. Our paper applies decomposition-based pricing to integer programs. For integer programs, we show that decomposition-based pricing produces tighter bounds than other common decomposition algori...
Article
published as CD-ROM Research is underway throughout the world into alternative approaches to water allocation that can maximise economic efficiency while respecting environmental bottom lines and ensuring the rule of law. One innovative programme, led by researchers at the University of Canterbury, is examining the potential for a spot market for w...
Article
Thesis (Ph. D.)--University of Chicago Graduate School of Business, March 1997. Includes bibliographical references.
Article
Full-text available
Society faces high costs due to environmental degradation from sediment discharge. Development can increase stream peak flows and sediment discharge. Excess sediment discharges threaten natural habitat, recreational places, rural areas, and commercial ports. In New Zealand, the 2004 North Island floods were estimated to cost about NZ$300 million. A...
Article
Full-text available
Efficient management of water requires balancing environmental needs, externality considerations, and economic efficiency. Toward that end, this paper presents a deterministic linear program that could be used to operate a smart spot market for groundwater. The market design uses the existing hydrological programs MODFLOW and GWM along with standar...
Article
Full-text available
Damage caused from stormwater runoff is becoming more frequent and occurring in places that were previously free of these problems. In order to reduce this problem, authorities have looked at different mechanisms for controlling and minimising the costs of floods. This paper proposes a smart market (SM) for runoff from impervious cover to reduce th...

Projects

Project (1)
Archived project
Mathematical programming is the best path to determine the optimum solution of many problems that appeared in our everyday life. Sometimes it seems difficult to solve problems with many constraints. In that case, decomposition techniques are more reliable and easier tools to solve them. But when uncertainty arises or particular solutions are needed the existing techniques are required to modify. Goal of this work is to improve different decomposition techniques for solving large scale linear programming problems (LP).