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Integrated economic-hydrologic water modeling at the basin scale: the Maipo river basin

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  • Rosegrant, M. W.
  • Ringler, C.
  • McKinney, D. C.
  • Cai, X.
  • Keller, A.
  • Donoso, G.

Abstract

Increasing competition for water across sectors increases the importance of the river basin as the appropriate unit of analysis to address the challenges facing water resources management; and modeling at this scale can provide essential information for policymakers in their resource allocation decisions. This paper introduces an integrated economic-hydrologic modeling framework that accounts for the interactions between water allocation, farmer input choice, agricultural productivity, nonagricultural water demand, and resource degradation in order to estimate the social and economic gains from improvement in the allocation and efficiency of water use. The model is applied to the Maipo River Basin in Chile. Economic benefits to water use are evaluated for different demand management instruments, including markets in tradable water rights, based on production and benefit functions with respect to water for the agricultural and urban-industrial sectors.
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Suggested Citation

  • Rosegrant, M. W. & Ringler, C. & McKinney, D. C. & Cai, X. & Keller, A. & Donoso, G., 2000. "Integrated economic-hydrologic water modeling at the basin scale: the Maipo river basin," Agricultural Economics, Blackwell, vol. 24(1), pages 33-46, December.
    • Handle: RePEc:eee:agecon:v:24:y:2000:i:1:p:33-46
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    1. Meinzen-Dick, Ruth & Raju, K. V. & Gulati, Ashok, 2002. "What Affects Organization and Collective Action for Managing Resources? Evidence from Canal Irrigation Systems in India," World Development, Elsevier, vol. 30(4), pages 649-666, April.
    2. Alan Randall, 1981. "Property Entitlements And Pricing Policies For A Maturing Water Economy," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 25(3), pages 195-220, December.
    3. Rosegrant, Mark W., 1997. "Water resources in the twenty-first century: challenges and implications for action," 2020 vision discussion papers 20, International Food Policy Research Institute (IFPRI).
    4. Randall, Alan, 1981. "Property Entitlements And Pricing Policies For A Maturing Water Economy," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 0(Number 3), pages 1-26, December.
    5. Rosegrant, Mark W. & Binswanger, Hans P., 1994. "Markets in tradable water rights: Potential for efficiency gains in developing country water resource allocation," World Development, Elsevier, vol. 22(11), pages 1613-1625, November.
    6. Rosegrant, Mark W. & Schleyer, Renato Gazmuri & Yadav, Satya N., 1995. "Water policy for efficient agricultural diversification: market-based approaches," Food Policy, Elsevier, vol. 20(3), pages 203-223, June.
    7. Hearne, R.R. & Easter, K.W., 1995. "Water Allocation and Water Markets. An Analysis of Gains-from-Trade in Chile," Papers 315, World Bank - Technical Papers.
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