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Climate change adaptation and water resource management: A review of the literature

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  • Olmstead, Sheila M.

Abstract

This paper considers the extent and usefulness of the existing empirical literature on water supply, demand, and adaptation to climate change for incorporation into integrated assessment modeling efforts. We review the existing literature on the likely economic impacts of climate change, acting through water supply and demand effects in specific river basins, and the ability of adaptation to mitigate those impacts. Since adaptive responses will be implemented largely by local, regional, and national water management institutions, we also review what is known about the responses of water users to water prices, non-price water conservation policies, water trading, investment in and operations of storage and conveyance infrastructure, and transboundary water allocation mechanisms — the set of policy levers typically available to water managers at various geographic scales. Remaining gaps in the empirical economic literature on these topics are identified. The paper also describes the potential contributions of linking existing and new empirical research on water resource adaptation with IAMs. The importance of further empirical economic and political–economic research on the role of water management institutions in adaptation, or maladaptation, to climate change emerges as an important theme.

Suggested Citation

  • Olmstead, Sheila M., 2014. "Climate change adaptation and water resource management: A review of the literature," Energy Economics, Elsevier, vol. 46(C), pages 500-509.
  • Handle: RePEc:eee:eneeco:v:46:y:2014:i:c:p:500-509
    DOI: 10.1016/j.eneco.2013.09.005
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    7. Pakmehr, Sedighe & Yazdanpanah, Masoud & Baradaran, Masoud, 2020. "How collective efficacy makes a difference in responses to water shortage due to climate change in southwest Iran," Land Use Policy, Elsevier, vol. 99(C).
    8. Carla Ximena Salinas & Jorge Gironás & Miriam Pinto, 2016. "Water security as a challenge for the sustainability of La Serena-Coquimbo conurbation in northern Chile: global perspectives and adaptation," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 21(8), pages 1235-1246, December.
    9. Patro, Epari Ritesh & De Michele, Carlo & Avanzi, Francesco, 2018. "Future perspectives of run-of-the-river hydropower and the impact of glaciers’ shrinkage: The case of Italian Alps," Applied Energy, Elsevier, vol. 231(C), pages 699-713.
    10. Livia Rasche & Uwe A. Schneider & Martha Bolívar Lobato & Ruth Sos Del Diego & Tobias Stacke, 2018. "Benefits of Coordinated Water Resource System Planning in the Cauca-Magdalena River Basin," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 4(01), pages 1-27, January.
    11. Maria-Floriana Popescu, 2015. "The Energy Issues: A Corpus-Based Analysis," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 18(56), pages 147-167, June,.

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    More about this item

    Keywords

    Water resources; Climate change; Adaptation; Integrated assessment modeling;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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