Virtues of simple hydro-economic optimization: Baja California, Mexico

Managing Aquifer Recharge to Overcome Overdraft in the Lower American River, California, USA

Frequent and prolonged droughts challenge groundwater sustainability in California but managing aquifer recharge can help to partially offset groundwater overdraft. Here, we use managed aquifer recharge (MAR) to examine potential benefits of adding an artificial recharge facility downstream from California’s Lower American River Basin, in part to prepare for drought. We use a statewide hydroeconomic model, CALVIN, which integrates hydrology, the economics of water scarcity cost and operations, environmental flow requirements, and other operational constraints, and allocates water monthly to minimize total scarcity and operating costs. This study considers a recharge facility with unconstrained and constrained flows. The results show that adding a recharge facility increases groundwater storage, reduces groundwater overdraft, and increases hydropower without substantially impacting environmental flows. Further, artificial recharge adds economic benefits by (1) reducing the combined costs of water shortage and surface water storage and (2) by increasing hydropower revenue. This study provides a benchmark tool to evaluate the economic feasibility and water supply reliability impacts of artificial recharge in California.

Agent-based modeling of participants' behaviors in an inter-sectoral groundwater market

While being affected by economic and hydrological conditions, the behaviors of water market participants can also be caused by their psychological characteristics and social stimuli of the environment. This paper employs agent-based modeling (ABM) approach to simulate a local groundwater market in central Iran. The proposed ABM framework couples social, economic, and hydrological sub-models. The social sub-model benefits from the theory of planned behavior under field studies to design psychology-based behaviors of trading agents. Moreover, in continuous interaction with the FlowLogo hydrological sub-model, the economic sub-model simulates the inter-sectoral water trading under a double-auction mechanism. The inter-sectoral trading includes selling the farms' irrigation water to the industry sector. The calibration and validation results for an eight-year simulation period (2010-2018) confirm the acceptable performance of the proposed ABM framework. Water trading patterns experience relatively extreme variations in the first years. However, with the adaption of the agents' bids to the market conditions, they gradually emerge in a more stable form in the last years. Furthermore, updating the psychological factors increases the agents' intention of participating in the market, and thus, the competition level over time. Finally, the hydro-economic analysis reveals that implementing the dynamic cap-and-trade policy increases the total net benefits of market participants by an average of 27% per year while reducing the region's groundwater drawdown by 56 cm. Such inter-sectoral water markets can help with the sustainable exploitation of groundwater resources.

Hydro-Economic Modelling for Water-Policy Assessment Under Climate Change at a River Basin Scale: A Review

Hydro-economic models (HEMs) constitute useful instruments to assess water-resource management and inform water policy. In the last decade, HEMs have achieved significant advances regarding the assessment of the impacts of water-policy instruments at a river basin or catchment level in the context of climate change (CC). This paper offers an overview of the alternative approaches used in river-basin hydro-economic modelling to address water-resource management issues and CC during the past decade. Additionally, it analyses how uncertainty and risk factors of global CC have been treated in recent HEMs, offering a discussion on these last advances. As the main conclusion, current challenges in the realm of hydro-economic modelling include the representation of the food-energy-water nexus, the successful representation of micro-macro linkages and feedback loops between the socio-economic model components and the physical side, and the treatment of CC uncertainties and risks in the analysis.

Untangling the water-food-energy-environment nexus for global change adaptation in a complex Himalayan water resource system

Holistic water management approaches are essential under future climate and socio-economic changes, especially while trying to achieve inter-disciplinary societal goals such as the Sustainable Development Goals (SDGs) of clean water, hunger eradication, clean energy and life on land. Assessing water resources within a water-food-energy-environment nexus approach enables the relationships between water-related sectors to be untangled while incorporating impacts of societal changes. We use a systems modelling approach to explore global change impacts on the nexus in the mid-21st century in a complex western Himalayan water resource system in India, considering a range of climate change and alternative socio-economic development scenarios. Results show that future socio-economic changes will have a much stronger impact on the nexus compared to climate change. Hydropower generation and environmental protection represent the major opportunities and limitations for adaptation in the studied system and should, thereby, be the focus for actions and systemic transformations in pursue of the SDGs. The emergence of scenario-specific synergies and trade-offs between nexus component indicators demonstrates the benefits that water resource systems models can make to designing better responses to the complex nexus challenges associated with future global change.

Bioenergy Development Policy and Practice Must Recognize Potential Hydrologic Impacts: Lessons from the Americas

Large-scale bioenergy production will affect the hydrologic cycle in multiple ways, including changes in canopy interception, evapotranspiration, infiltration, and the quantity and quality of surface runoff and groundwater recharge. As such, the water footprints of bioenergy sources vary significantly by type of feedstock, soil characteristics, cultivation practices, and hydro-climatic regime. Furthermore, water management implications of bioenergy production depend on existing land use, relative water availability, and competing water uses at a watershed scale. This paper reviews previous research on the water resource impacts of bioenergy production-from plot-scale hydrologic and nutrient cycling impacts to watershed and regional scale hydro-economic systems relationships. Primary gaps in knowledge that hinder policy development for integrated management of water-bioenergy systems are highlighted. Four case studies in the Americas are analyzed to illustrate relevant spatial and temporal scales for impact assessment, along with unique aspects of biofuel production compared to other agroforestry systems, such as energy-related conflicts and tradeoffs. Based on the case studies, the potential benefits of integrated resource management are assessed, as is the need for further case-specific research.

Integrated assessment of policy interventions for promoting sustainable irrigation in semi-arid environments: a hydro-economic modeling approach

Sustaining irrigated agriculture to meet food production needs while maintaining aquatic ecosystems is at the heart of many policy debates in various parts of the world, especially in arid and semi-arid areas. Researchers and practitioners are increasingly calling for integrated approaches, and policy-makers are progressively supporting the inclusion of ecological and social aspects in water management programs. This paper contributes to this policy debate by providing an integrated economic-hydrologic modeling framework that captures the socio-economic and environmental effects of various policy initiatives and climate variability. This modeling integration includes a risk-based economic optimization model and a hydrologic water management simulation model that have been specified for the Middle Guadiana basin, a vulnerable drought-prone agro-ecological area with highly regulated river systems in southwest Spain. Namely, two key water policy interventions were investigated: the implementation of minimum environmental flows (supported by the European Water Framework Directive, EU WFD), and a reduction in the legal amount of water delivered for irrigation (planned measure included in the new Guadiana River Basin Management Plan, GRBMP, still under discussion). Results indicate that current patterns of excessive water use for irrigation in the basin may put environmental flow demands at risk, jeopardizing the WFD's goal of restoring the 'good ecological status' of water bodies by 2015. Conflicts between environmental and agricultural water uses will be stressed during prolonged dry episodes, and particularly in summer low-flow periods, when there is an important increase of crop irrigation water requirements. Securing minimum stream flows would entail a substantial reduction in irrigation water use for rice cultivation, which might affect the profitability and economic viability of small rice-growing farms located upstream in the river. The new GRBMP could contribute to balance competing water demands in the basin and to increase economic water productivity, but might not be sufficient to ensure the provision of environmental flows as required by the WFD. A thoroughly revision of the basin's water use concession system for irrigation seems to be needed in order to bring the GRBMP in line with the WFD objectives. Furthermore, the study illustrates that social, economic, institutional, and technological factors, in addition to bio-physical conditions, are important issues to be considered for designing and developing water management strategies. The research initiative presented in this paper demonstrates that hydro-economic models can explicitly integrate all these issues, constituting a valuable tool that could assist policy makers for implementing sustainable irrigation policies.