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Integrated hydro-ecological and economic modeling of environmental flows: Macquarie Marshes, Australia

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  • Akter, Sonia
  • Grafton, R. Quentin
  • Merritt, Wendy S.

Abstract

This study provides a method to combine hydro-ecological response model outputs and nonmarket economic values of wetland inundation to estimate a unit price of environmental water. We show how an integrated socio-economic and hydro-ecological modelling approach may assist policy makers with water allocation decisions across competing uses. The IBIS decision support system incorporates a hydro-ecological model and is used to estimate the habitat suitability condition of wetland attributes for a given hydrology scenario. Non-use economic values of wetland attributes obtained by non-market valuation studies are then linked to the hydro-ecological model outputs to estimate marginal value of environmental flows. The contribution is to provide a robust, scientifically and economically valid method to estimate the marginal value of environmental water and to quantitatively evaluate the trade-offs involved in water allocation decisions across competing uses for water.

Suggested Citation

  • Akter, Sonia & Grafton, R. Quentin & Merritt, Wendy S., 2014. "Integrated hydro-ecological and economic modeling of environmental flows: Macquarie Marshes, Australia," Agricultural Water Management, Elsevier, vol. 145(C), pages 98-109.
    • Handle: RePEc:eee:agiwat:v:145:y:2014:i:c:p:98-109
    DOI: 10.1016/j.agwat.2013.12.005
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    References listed on IDEAS

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    1. Sonia Akter & R. Quentin Grafton, 2009. "Confronting Uncertainty and Missing Values in Species Conservation Investment with Environmental Value Transfer," Environmental Economics Research Hub Research Reports 0926, Environmental Economics Research Hub, Crawford School of Public Policy, The Australian National University, revised Sep 2009.
    2. Gürlük, Serkan & Ward, Frank A., 2009. "Integrated basin management: Water and food policy options for Turkey," Ecological Economics, Elsevier, vol. 68(10), pages 2666-2678, August.
    3. Robert J. Johnston & Randall S. Rosenberger, 2010. "Methods, Trends And Controversies In Contemporary Benefit Transfer," Journal of Economic Surveys, Wiley Blackwell, vol. 24(3), pages 479-510, July.
    4. Whitten, Stuart M. & Bennett, Jeffrey W., 2004. "A Bio-Economic Model Of Wetland Protection On Private Lands," 2004 Annual meeting, August 1-4, Denver, CO 20122, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Cao, XiaoLei & Zhou, ZuHao & Chen, XiangDong & Shao, WeiWei & Wang, ZiRu, 2015. "Improving leaf area index simulation of IBIS model and its effect on water carbon and energy—A case study in Changbai Mountain broadleaved forest of China," Ecological Modelling, Elsevier, vol. 303(C), pages 97-104.
    2. R. Quentin Grafton, 2017. "Responding to the ‘Wicked Problem’ of Water Insecurity," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 31(10), pages 3023-3041, August.
    3. Siyu Yue & Huaien Li & Fengmin Song, 2023. "Temporal–Spatial Variations in the Economic Value Produced by Environmental Flows in a Water Shortage Area in Northwest China," Sustainability, MDPI, vol. 15(4), pages 1-17, February.
    4. Pereau, Jean-Christophe & Pryet, Alexandre & Rambonilaza, Tina, 2019. "Optimality Versus Viability in Groundwater Management with Environmental Flows," Ecological Economics, Elsevier, vol. 161(C), pages 109-120.
    5. Claire Settre & Jeff Connor & Sarah Ann Wheeler, 2017. "Reviewing the Treatment of Uncertainty in Hydro-economic Modeling of the Murray–Darling Basin, Australia," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 3(03), pages 1-35, July.
    6. Samantha J. Capon & Timothy R. Capon, 2017. "An Impossible Prescription: Why Science Cannot Determine Environmental Water Requirements for a Healthy Murray-Darling Basin," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 3(03), pages 1-17, July.
    7. R. J. Farquharson & J. W. Freebairn & J. A. Webb & M. J. Stewardson & T. Ramilan, 2017. "An Economic Framework for Sharing Water Within a River Catchment," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 3(03), pages 1-19, July.
    8. Abbas Mirzaei & Mansour Zibaei, 2021. "Water Conflict Management between Agriculture and Wetland under Climate Change: Application of Economic-Hydrological-Behavioral Modelling," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 35(1), pages 1-21, January.
    9. Grafton, Rupert Quentin, 2019. "Policy review of water reform in the Murray– Darling Basin, Australia: the “do’s” and “do’nots”," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 63(1), January.

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