Hydroeconomic optimization of integrated water management and transfers under stochastic surface water supply

Zhu, Tingju; Marques, Guilherme Fernandes; Lund, Jay R.

doi:10.1002/2014wr016519

Cited by 37 publications

(23 citation statements)

References 35 publications

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“…Recognition of previously neglected water rights of people groups or nations further necessitates water reallocation as a means of adjusting to shifting values or governmental positions (e.g., reallocation of water in South Africa to increase the equitable distribution of water after apartheid or the US government calling for reallocation of nearly 10% of Arizona's total developed water supply to meet formally unrecognized Native American water claims). Water reallocation has been shown to resolve conflict among, and balance the needs of, multiple water users while improving local and regional economic robustness …”

Section: Impetus For Water Reallocationmentioning

confidence: 99%

“…Water reallocation can act as an important component in a water supply and demand management portfolio and has been shown to improve the cost effectiveness, adaptability, and reliability of a water resources system . Water supply management primarily involves structural measures to increase the availability, reliability, and quality of water resources for productive uses, while demand management intends to reduce the use of water through increased efficiency from source to disposal.…”

Section: Introductionmentioning

confidence: 99%

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An overview of water reallocation and the barriers to its implementation

Marston

Cai

2016

WIREs Water

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The growing number of areas facing water scarcity necessitates adaptive water management strategies beyond traditional water supply and demand management methods, which are becoming increasingly difficult in many regions. Water reallocation offers a flexible water management approach to mitigate water scarcity under changing socioeconomic, climatic, and environmental conditions. In spite of the numerous benefits of reallocating water between users, examples of successful water transfers are relatively sparse and the expected benefits are rarely met in full due to several complex impediments. This study overviews the current body of water reallocation literature, with a particular focus on the key barriers to wider implementation of water reallocation. We argue that to overcome these obstacles a more interdisciplinary approach to water reallocation should be advanced that couples developments in the natural sciences and engineering disciplines with current water reallocation scholarship, which is predominately rooted in the social sciences. Many examples of water transfers from around the world are used to illustrate both the benefits and challenges associated with reallocation, as well as to identify measures to overcome some of the major difficulties. We conclude by calling for an integrated research platform that focuses on supporting both voluntary and nonvoluntary forms of water reallocation; however, a greater emphasis should be on nonmarket means of water transfer since it is more feasible for many regions where water rights are not well defined and institutional capacity is insufficient.

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Section: Impetus For Water Reallocationmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

An overview of water reallocation and the barriers to its implementation

Marston

Cai

2016

WIREs Water

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“…, Marques, Lund, and Howitt (2005), Zhu, Marques, and Lund (2015) Stochastic dynamic programming and its derivatives Nandalal and Bogardi (2007), Pereira-Cardenal, Mo, Riegels, Arnbjerg-Nielsen, and Bauer-Gottwein (2015), Pinto (1991, 1985), Stedinger, Sule, and Loucks (1984), Tejada-Guibert, Johnson, and Stedinger (1993), Turner and Galelli (2015), (2001), Kelman, Stedinger, Cooper, Hsu, and Yuan (1990) AUTHOR CONTRIBUTIONS Hector Macian-Sorribes: Investigation; methodology; resources; supervision; writing-original draft; and writingreview and editing. Manuel Pulido-Velazquez: Investigation; methodology; resources; supervision; writing-original draft; and writing-review and editing.…”

Section: Stochastic Linear Programmingmentioning

confidence: 99%

Inferring efficient operating rules in multireservoir water resource systems: A review

Macian-Sorribes

Pulido-Velázquez

2019

WIREs Water

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Coordinated and efficient operation of water resource systems becomes essential to deal with growing demands and uncertain resources in water‐stressed regions. System analysis models and tools help address the complexities of multireservoir systems when defining operating rules. This paper reviews the state of the art in developing operating rules for multireservoir water resource systems, focusing on efficient system operation. This review focuses on how optimal operating rules can be derived and represented. Advantages and drawbacks of each approach are discussed. Major approaches to derive optimal operating rules include direct optimization of reservoir operation, embedding conditional operating rules in simulation‐optimization frameworks, and inferring rules from optimization results. Suggestions on which approach to use depend on context. Parametrization–simulation–optimization or rule inference using heuristics are promising approaches. Increased forecasting capabilities will further benefit the use of model predictive control algorithms to improve system operation. This article is categorized under: Engineering Water > Water, Health, and Sanitation Engineering Water > Methods

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“…This could be balanced in subsequent analyses by explicitly accounting for uncertainties in rainfalls, river flows and prices, using state-contingent analysis (Quiggin and Chambers, 2006;Adamson et al, 2007Adamson et al, , 2009Mallawwaarachci et al, 2012;Crean et al, 2013) or similar means. Zhu et al (2015) provide analytic results for integrated water management and transfers under stochastic surface water supplies. Though we can estimate the opportunity costs of reductions in economic water-use, we have offered no suggestions on how to assign a particular price or value to environmental water.…”

Section: Long-term Average Rainfalls Typical Variations and Climate mentioning

confidence: 99%

Distributional consequences of upstream tree plantations on downstream water users in a Public–Private Benefit Framework

Nordblom

Hume

Finlayson³

et al. 2015

Agricultural Systems

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We apply a Public-Private Benefit Framework (PPBF) for new perspectives on the distributional consequences of land-use change in upstream watersheds (wide expansion of tree plantations) negatively affecting downstream water users. Our study area is the Macquarie River catchment in central-west New South Wales, as part of Australia's Murray-Darling Basin, where active water entitlement markets exist downstream. We consider benefits and costs to private upstream landholders allowed to establish new plantations without regard to reduced water flows and qualities to downstream users (urban, agricultural and environmental). Second, we explore a policy requiring new plantations to purchase permanent entitlements in advance for amounts of water they will divert from downstream uses; the calculated increase in evapotranspiration above that of current land-use. With no requirement to purchase entitlements, new plantation areas and their increased water consumption would be greatest, as would negative impacts on downstream water users. Some downstream water users are assumed willing to surrender entitlements at lower prices than others, resulting in an upward-sloping supply curve. Demand for entitlements by new upstream plantations will be functions of anticipated tree product yields, prices, establishment and opportunity costs. Their aggregate demand is downward sloping and intersects the supply curve to define the equilibrium quantity and price of water entitlements traded. With a tree product price of $70/m 3 the economic consequences of unrestricted expansion of planting in the upper watersheds could be in the order of $639M (tree-NPV, 7%) in upstream private net benefit gains, but $388M in uncompensated losses to downstream public net benefits, counting losses of 154 GL in environmental flows valued at $1M/GL, for total catchment net benefits of $251M. The policy as confirmed by our PPBF, indicates "flexible negative incentives" to reduce the expansion of new private plantations by compensating downstream public losses through sale of water entitlements from the latter to the former. Assuming that environmental flows are protected and purchase of downstream water entitlements is required from irrigators and stock and domestic users for new tree plantations, net private benefits of $192M to new plantations are added to $138M in downstream public benefits, improving the net change in catchment benefits to $330M. The policy would improve total net catchment benefit from $251M to $330M, achieving an economically efficient, socially equitable and environmentally sustainable solution, which adjusts automatically over time through the market. Crown

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Hydroeconomic optimization of integrated water management and transfers under stochastic surface water supply

Cited by 37 publications

References 35 publications

An overview of water reallocation and the barriers to its implementation

An overview of water reallocation and the barriers to its implementation

Inferring efficient operating rules in multireservoir water resource systems: A review

Distributional consequences of upstream tree plantations on downstream water users in a Public–Private Benefit Framework

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