Research
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UNC Chapel Hill has long been a leader in promoting interdisciplinary research, and IRMII continues that work through collaboration within and among different schools, units, and industry partners. IRMII provides bridges to connect and integrate the work of units from across the university, and combine these with the insights and experience of our industry partners to develop new knowledge and novel solutions. In bringing together these many perspectives, we seek to facilitate translational research, accelerating the application of advanced knowledge that addresses real world problems and global needs.
IRMII research is currently focused on the locations identified in the map above, with application potential across the globe. Please reach out to the Director of Research, Dr. Harrison Zeff, at irmii@unc.edu if you are interested in collaborating or learning more.
Biofuels Production
Algae-based biofuels have many advantages over conventional biofuels, but productivity in algal biofuel facilities is impacted by deviations from expected weather conditions (e.g., temperature, insolation), which gives rise to financial risks that must be effectively managed in order to make these renewable energy investments attractive.
California
Drought impacts both water and power availability in California, imposing financial risks that are a function of linked natural-engineered-economic systems. Integrated systems models allow for a improved characterization of both supply- and financial-risks, as well as for the development of strategies for better managing them.
Catawaba Basin
An important measure of power utilities’ financial exposure to drought is how utilities’ investors (shareholders and bond holders) are impacted, with changes in power generation mix playing an important role.
Central Arizona
The Central Arizona Project (CAP) pumps Colorado River water through a system of aqueducts and reservoirs to 80% of the state’s residents, but drought results in less pumping and forces the CAP to increase its delivery prices to meet its fixed costs. Price increases vary with hydrology, and are disruptive to customers, but can be offset through the use of alternative mechanisms.
Coastal Carolina
Coastal Carolina has been hit by numerous hurricanes and related floods, with financial risks accruing to property owners, lenders, and local governments. Improved understanding of these risks, and innovative strategies for managing them can greatly enhance regional resilience in the wake of these events.
Visit the Coastal Carolina page
Colorado River Basin
Drought in the Colorado imposes financial risks on both urban and agricultural water users. Novel financial instruments and water market transfer mechanisms can reduce these risks by facilitating more rapid and less expensive re-allocation of water during periods of scarcity.
Visit the Colorado River Basin page
Columbia River Basin
Electricity supplies in hydropower-dominated regions are particularly vulnerable to drought which reduces generation and revenues for power producers at intermittent times and severity levels. Managing these financial risks can be more efficiently achieved via strategies that employ a combination of actions that include risk reduction (tariff adjustment), risk retention (reserve funds) and risk transfer (index insurance).
Visit the Columbia River Basin page
Great Lakes
Low water levels impose financial risks on both shipping firms and hydropower producers in the Great Lakes. Index insurance linked to water level behavior can be used to effectively manage these risks.
Healthcare Facilities
Healthcare facilities must often resort to extreme measures during infectious disease outbreaks, such as canceling elective procedures, to ensure sufficient capacity to accommodate the surge of infected patients. This can be effective for maintaining public health, but often results in large losses for hospitals which must be managed if they are to maintain financially stability during these events.
Visit the Healthcare Facilities page
Houston/Galveston
Hurricanes lead to contaminant releases that are extremely expensive to remediate. Developing strategies for managing the resulting financial risks can facilitate quicker, more effective cleanup that protects public health.
Visit the Houston/Galveston page
Mississippi Basin
Drought lowers water levels in the Mississippi River, disrupting barge traffic that serves as the most efficient means of transporting many bulk goods (e.g., corn, soybeans). This results in a combination of reduced revenues for shippers and higher costs for producers moving products to market. An understanding of these financial risks allows for improved decisions on how best to manage them.
Vist the Mississippi Basin page
Research Triangle
From water transfers to index insurance to infrastructure sequencing, a wide variety of physical and financial tools can help water utilities combat the financial risks of water scarcity.
Roanoke Basin
Designing risk management tools to protect hydropower producers against drought involves an understanding of both hydrological risk and electricity price risk.
Tampa Bay
Water utilities are subject to considerable long-term financial risk due to uncertainties in demand growth and climate, which can result in excess costs for infrastructure when demand growth lags, or reductions in supply reliability if water availability declines relative to historic patterns. New strategies for coordinated management of supply risk and financial risk can improve a utility’s ability to meet its performance goals.
US Water Utilities
Drought imposes financial risks on water utilities that can be managed with financial instruments. The cost of these instruments can be significantly reduced by pooling risks across geographically dispersed utilities.