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An integrated hydro-economic modelling framework to evaluate water allocation strategies I: Model development

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  • George, Biju
  • Malano, Hector
  • Davidson, Brian
  • Hellegers, Petra
  • Bharati, Luna
  • Massuel, Sylvain

Abstract

In this paper an integrated modelling framework for water resources planning and management that can be used to carry out an analysis of alternative policy scenarios for water allocation and use is described. The modelling approach is based on integrating a network allocation model (REALM) and a social Cost Benefit economic model, to evaluate the physical and economic outcomes from alternative water allocation policies in a river basin or sub-basin. From a hydrological perspective, surface and groundwater models were first applied to assess surface and groundwater resource availability. Then an allocation model was applied to reconcile the calculated surface and groundwater resources. From an economic perspective initially the value of water allocated to different uses in each demand centre within the system was estimated. These values were then placed in a social Cost Benefit Analysis to assess the economic consequences of different allocation scenarios over time and space. This approach is useful as it allows policymakers to consider not only the physical dimensions of distributing water, but also the economic consequences associated with it. This model is considered superior to other models as water is increasingly being seen as an economic good that should be allocated according to its value. The framework outlined in this paper was applied to the Musi sub-basin located in the Krishna Basin, India. In applying this framework it was concluded that competition for Musi water is very high, the transfer of water from agriculture to urban users is likely to grow in future and the value of water used in different agricultural zones is very low.

Suggested Citation

  • George, Biju & Malano, Hector & Davidson, Brian & Hellegers, Petra & Bharati, Luna & Massuel, Sylvain, 2011. "An integrated hydro-economic modelling framework to evaluate water allocation strategies I: Model development," Agricultural Water Management, Elsevier, vol. 98(5), pages 733-746, March.
    • Handle: RePEc:eee:agiwat:v:98:y:2011:i:5:p:733-746
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    References listed on IDEAS

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    1. George, Biju & Malano, Hector & Davidson, Brian & Hellegers, Petra & Bharati, Luna & Massuel, Sylvain, 2011. "An integrated hydro-economic modelling framework to evaluate water allocation strategies II: Scenario assessment," Agricultural Water Management, Elsevier, vol. 98(5), pages 747-758, March.
    2. Venot, Jean-Philippe & Sharma, Bharat R. & Rao, Kamineni V.G.K., 2008. "The Lower Krishna Basin Trajectory: Relationships between Basin Development and Downstream Environmental Degradation," IWMI Research Reports 44515, International Water Management Institute.
    3. McCartney, Matthew P. & Arranz, Roberto, 2007. "Evaluation of historic, current and future water demand in the Olifants River Catchment, South Africa," IWMI Research Reports H040648, International Water Management Institute.
    4. 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.
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    7. Davidson, B. & Hellegers, Petra & Samad, Madar, 2009. "Assessing the economic impact of redistributing water within a catchment: a case study of the Musi Catchment in the Krishna Basin in India," IWMI Working Papers H042879, International Water Management Institute.
    8. Venot, Jean-Philippe & Sharma, Bharat R. & Rao, K. V. G. K., 2008. "The lower Krishna Basin trajectory: relationships between basin development and downstream environmental degradation," IWMI Research Reports H041463, International Water Management Institute.
    9. Hellegers, Petra & Davidson, Brian, 2010. "Determining the disaggregated economic value of irrigation water in the Musi sub-basin in India," Agricultural Water Management, Elsevier, vol. 97(6), pages 933-938, June.
    10. Kumar, Surender, 2004. "Analysing industrial water demand in India: An input distance function approach," Working Papers 04/12, National Institute of Public Finance and Policy.
    11. McCartney, Matthew P. & Arranz, Roberto, 2007. "Evaluation of historic, current and future water demand in the Olifants River Catchment, South Africa," IWMI Research Reports 61095, International Water Management Institute.
    12. Smakhtin, Vladimir & Anputhas, Markandu, 2006. "An assessment of environmental flow requirements of Indian river basins," IWMI Research Reports H039610, International Water Management Institute.
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    Cited by:

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    2. Rouhi Rad, Mani & Haacker, Erin M.K. & Sharda, Vaishali & Nozari, Soheil & Xiang, Zaichen & Araya, A. & Uddameri, Venkatesh & Suter, Jordan F. & Gowda, Prasanna, 2020. "MOD$$AT: A hydro-economic modeling framework for aquifer management in irrigated agricultural regions," Agricultural Water Management, Elsevier, vol. 238(C).
    3. George, Biju & Malano, Hector & Davidson, Brian & Hellegers, Petra & Bharati, Luna & Massuel, Sylvain, 2011. "An integrated hydro-economic modelling framework to evaluate water allocation strategies II: Scenario assessment," Agricultural Water Management, Elsevier, vol. 98(5), pages 747-758, March.
    4. Davidson, Brian & Hellegers, Petra & George, Biju & Malano, Hector, 2019. "The opportunity costs of increasing reliability in irrigation systems," Agricultural Water Management, Elsevier, vol. 222(C), pages 173-181.
    5. Rajesh Nune & Biju George & Pardhasaradhi Teluguntla & Andrew Western, 2014. "Relating Trends in Streamflow to Anthropogenic Influences: A Case Study of Himayat Sagar Catchment, India," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 28(6), pages 1579-1595, April.
    6. Amjath-Babu, T.S. & Sharma, Bikash & Brouwer, Roy & Rasul, Golam & Wahid, Shahriar M. & Neupane, Nilhari & Bhattarai, Utsav & Sieber, Stefan, 2019. "Integrated modelling of the impacts of hydropower projects on the water-food-energy nexus in a transboundary Himalayan river basin," Applied Energy, Elsevier, vol. 239(C), pages 494-503.
    7. Yu, Yang & Yu, Ruide & Chen, Xi & Yu, Guoan & Gan, Miao & Disse, Markus, 2017. "Agricultural water allocation strategies along the oasis of Tarim River in Northwest China," Agricultural Water Management, Elsevier, vol. 187(C), pages 24-36.
    8. Yang, Y.C. Ethan & Wi, Sungwook, 2018. "Informing regional water-energy-food nexus with system analysis and interactive visualization – A case study in the Great Ruaha River of Tanzania," Agricultural Water Management, Elsevier, vol. 196(C), pages 75-86.
    9. M. E. Qureshi & M. D. Ahmad & S. M. Whitten & A. Reeson & M. Kirby, 2018. "Impact of Climate Variability Including Drought on the Residual Value of Irrigation Water Across the Murray–Darling Basin, Australia," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 4(01), pages 1-25, January.
    10. March, Hug & Therond, Olivier & Leenhardt, Delphine, 2012. "Water futures: Reviewing water-scenario analyses through an original interpretative framework," Ecological Economics, Elsevier, vol. 82(C), pages 126-137.
    11. Aghapour Sabbaghi, Mohammad & Nazari, Mohammadreza & Araghinejad, Shahab & Soufizadeh, Saeid, 2020. "Economic impacts of climate change on water resources and agriculture in Zayandehroud river basin in Iran," Agricultural Water Management, Elsevier, vol. 241(C).
    12. Mohammad Karamouz & Sara Nazif & Mohammad Sherafat & Zahra Zahmatkesh, 2014. "Development of an Optimal Reservoir Operation Scheme Using Extended Evolutionary Computing Algorithms Based on Conflict Resolution Approach: A Case Study," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 28(11), pages 3539-3554, September.
    13. Ibrakhimov, Mirzakhayot & Awan, Usman Khalid & George, Biju & Liaqat, Umar Waqas, 2018. "Understanding surface water–groundwater interactions for managing large irrigation schemes in the multi-country Fergana valley, Central Asia," Agricultural Water Management, Elsevier, vol. 201(C), pages 99-106.

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