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01 November 2016
By James Grayburn, et. al.
NERA Economic Consulting was commissioned by Thames Water to consider the question, “How should the appropriate time horizon for integrated water resource planning be ascertained?” The short answer is that the horizon should be chosen so that the projected effects (e.g., costs and benefits) beyond that time are unlikely to affect the decisions about what is best to do initially. This report draws on reviews of horizon-setting in other sectors and jurisdictions and on discussions in the academic literature to develop a framework that will aid the planner in ascertaining the appropriate horizon for a specific planning exercise.