Abstract
A recourse-based nonlinear programming (RBNP) method is developed for stream water quality management under uncertainty. It can not only reflect uncertainties expressed as interval values and probability distributions but also address nonlinearity in the objective function. A 0-1 piecewise linearization approach and an interactive algorithm are advanced for solving the RBNP model. The RBNP is applied to a case of planning stream water quality management. The RBNP modeling system can provide an effective linkage between environmental regulations and economic implications expressed as penalties or opportunity losses caused by improper policies. The solutions can be used for generating a variety of alternatives under different combinations of pre-regulated targets, which are also associated with different water-quality-violation risk levels and varied potential economic penalty or loss values.
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