Economically Driven Simulation of Regional Water Systems: Friant-Kern, California

Marques, Guilherme Fernandes; Lund, Jay R.; Leu, Mark R.; Jenkins, Marion W.; Howitt, Richard E.; Harter, Thomas; Hatchett, Steve; Ruud, N. C.; Burke, Shannon

doi:10.1061/(asce)0733-9496(2006)132:6(468)

Cited by 39 publications

(29 citation statements)

References 19 publications

(11 reference statements)

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“…In other cases, changes in surface water prices and costs affect the relative value of groundwater, reflecting on pumping patterns, operating costs and groundwater storage. Marques et al (2006) investigate surface and groundwater economic uses in California, showing that lower groundwater pumping costs relative to surface water resulted in a system failure to internalize groundwater pumping externalities, as users switch to groundwater and aquifer overdraft is intensified. The overdraft raised future groundwater pumping costs, with potentially large economic impacts and risk to the feasibility of conjunctive use operations.…”

Section: Economic and Hydrologic Tradeoffs Of Conjunctive Usementioning

confidence: 99%

Hydroeconomic Models as Decision Support Tools for Conjunctive Management of Surface and Groundwater

Pulido-Velázquez

Marques

Harou

et al. 2016

Integrated Groundwater Management

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Conjunctive use (CU) of surface and groundwater storage and supplies is essential for integrated water management. It is also a key strategy for supporting groundwater-dependent ecosystems, and for adapting water systems to future climate and land use changes. CU has become increasingly sophisticated and integrated with other innovative and traditional water management techniques, such as water transfers, water reuse, demand management, and aquifer remediation. CU adds value for society (increasing average yield and reliability) but can also induce costs to some parties, such as damaging senior water rights of surface water users when pumping from the aquifer reduces streamflow. Groundwater overexploitation also can produce a host of undesirable economic and environmental impacts. Successful CU implementation typically requires changes in infrastructure and operations, but also changes in institutions and institutional arrangements to offset potential third party costs and protect ecosystems. This chapter analyses first the management and economic implications of CU,

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Section: Economic and Hydrologic Tradeoffs Of Conjunctive Usementioning

confidence: 99%

Hydroeconomic Models as Decision Support Tools for Conjunctive Management of Surface and Groundwater

Pulido-Velázquez

Marques

Harou

et al. 2016

Integrated Groundwater Management

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“…To this end, hydro‐economic optimization models are helpful because they are able to obtain the economical optimum as a solution, prescribing the most efficient strategies for water allocation from a societal point of view, while incorporating hydrological, environmental, and institutional constraints. These models have advanced rapidly over the last few years, and are expected to make a significant impact on conceptual approaches and water resources management practices …”

Section: Water Pricing Policy Affecting Water Use For Bioenergy Produmentioning

confidence: 99%

“…PMP is well known for successful applications in economic research, including agricultural economics . It is a method that self‐calibrates to the behavior observed in a given reference year to conditions in the study area (e.g.…”

Section: Economic Models To Support Decisions On Water Pricing Policymentioning

confidence: 99%

“…For more information, the reader is referred to documentation of a number of hydro‐economic models that incorporate PMP models – including the RAUMIS model for Germany; Farmis also for Germany; CAPRI for the European Union; PROMAPA for Spain; and SWAP for California, USA – or point‐expansion methods …”

Section: Economic Models To Support Decisions On Water Pricing Policymentioning

confidence: 99%

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Integrated economic models to support decisions on water pricing in biofuel production river basins: three case studies from Brazil

Moraes

Ribeiro

Watkins

et al. 2015

Biofuels Bioprod Bioref

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Energy securities, increases in fossil fuel prices, and concern about climate change have been major causes of increased bioenergy production. Because biomass production is rural‐based and generally labor‐intensive, bioenergy development happens mainly in less developed countries. Comprehensive analysis is needed to develop appropriate policies to ensure the sustainability of resource use while promoting economic development. Given this, public policies must promote more efficient inter‐ and intra‐sector water allocation schemes. Economic instruments, such as water pricing and water markets, can be used to avoid transferring negative environmental and economic impacts of meeting global renewable energy targets to production regions. In Brazil, water markets are not allowed, but the law has established raw water charges as a management instrument at the river basin level. However, the majority of bulk water charge systems have been defined exclusively for raising revenue. Integrated economic modeling can be a useful tool to support the design of effective economic instruments. This paper describes the main features of two economic modeling approaches that can support effective water pricing decisions. Three case studies illustrate sugarcane ethanol production river basins in Brazil where water prices have already been established but fail to reflect the real scarcity value of water in the region. In addition, preliminary results of a national‐level economic model being built for Brazil show that increasing water charges for the agricultural sector can have significant effects on water demand and agriculture production. The potential benefits of water pricing policy decisions based on economic modeling results are assessed. © 2015 Society of Chemical Industry and John Wiley & Sons, Ltd

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“…For example, the existing literature by and large fails to adequately capture the multi-input, multi-output nature of agriculture. With the notable exceptions of Draper et al (2003), Cai and Wang (2006), Marques et al (2006), Ringler et al (2006), Cai et al (2008), and Maneta et al (2009a), all studies have relied on a single water input (measured water use or proxies for water use, such as evapotranspiration) in agronomic production functions, or on linear programming models based on fixed input-output coefficients.…”

Section: Introductionmentioning

confidence: 99%

Economic impacts of regional water scarcity in the São Francisco River Basin, Brazil: an application of a linked hydro-economic model

Torres¹,

Maneta²,

Howitt³

et al. 2011

Envir. Dev. Econ.

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This paper presents a linked hydro-economic model and uses it to examine the regional effects of water use regulations and product price changes on the agriculture of the São Francisco River Basin, Brazil. The effects of weather on surface water 228 Marcelo de O. Torres et al.availability are explicitly addressed using the hydrological model MIKE-Basin. Farmers' adjustments to changes in precipitation, surface water availability, and other factors are quantified using an economic model based on non-linear programming techniques. The models are externally linked. Results show that regional impacts, at the sub-basin level, vary depending on the location of each sub-basin relative to river flows. The effects of water use regulations and of exogenous price shocks on agriculture depend on weather, location, product mix and production technology. Implications of these results for policies designed to manage agriculture and water use are discussed.

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Economically Driven Simulation of Regional Water Systems: Friant-Kern, California

Cited by 39 publications

References 19 publications

Hydroeconomic Models as Decision Support Tools for Conjunctive Management of Surface and Groundwater

Hydroeconomic Models as Decision Support Tools for Conjunctive Management of Surface and Groundwater

Integrated economic models to support decisions on water pricing in biofuel production river basins: three case studies from Brazil

Economic impacts of regional water scarcity in the São Francisco River Basin, Brazil: an application of a linked hydro-economic model

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