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CONTROL OF WATER CONSUMPTION OF ENTERPRISES OF ROSTOV REGION

. In this paper we consider the hierarchical two-level dynamic model of water consumption of enterprises of Rostov region. On the top level there is region’s government (supervisor) and on the lower level there are enterprises grouped by the types of economic activity. Such grouping allows one to avoid modelling all region’s enterprises which consumes water (there were about 500 enterprises in 2019) while still considering the uniqueness of the enterprises. We consider three groups of enterprises which, according to statistics, are the main water consumers. The enterprises aim to maximize their production while supervisor seeks to minimize water consumption and to maximize production. We introduce generalized goal function for supervisor, which it seeks to maximize depending on what it values the most – production or water consumption. Using the model, we study how supervisor is able to control water consumption of the enterprises with extra fees and how it may affect production level. We provide algorithms for model identification and study. For model identification we use least squares method and the data from publicly available sources. To study model we use Pontryagin’s maximum principle and quality representative scenarios method. We provide various calculations for the model with different supervisor’s preferences. We show that it is possible to reduce water consumption by more than 50 % with production decrease being less than 25%