Journal
SCIENCE OF THE TOTAL ENVIRONMENT
Volume 800, Issue -, Pages -Publisher
ELSEVIER
DOI: 10.1016/j.scitotenv.2021.149543
Keywords
Integrated hydro-economic model; Vulnerability assessment; Water allocation; Water stress; Robust decision making
Categories
Funding
- Integrated Modelling Program for Canada (IMPC) part of the Canada First Research Excellence Fund (CFREF) project, Global Water Futures (GWF)
- College of Graduate and Postdoctoral Studies
- School of Environmental and Sustainability, University of Saskatchewan
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This study develops a hydro-economic modelling framework for river-basin scales integrating water resources system model and economic model. Applied to multi-jurisdictional Saskatchewan River Basin, the model shows that an economically optimal water allocation strategy can significantly reduce economic losses caused by water stress.
In this study, we develop a hydro-economic modelling framework for river-basin scales by integrating a water resources system model and an economic model. This framework allows for the representation of both local scale features, such as reservoirs, diversions, and water licenses and priorities, and regional-and provincial scale features, such as cross-sectoral and inter-regional connectedness and trade flows. This framework is able to: (a) represent nonlinearities and interactions that cannot be represented by either of typical water resources or economic models; (b) analyze the sensitivity of macro-scale economy to different local water management decisions (called 'decision levers' herein); and (c) identify water allocation strategies that are economically sound across sectors and regions. This integrated model is applied to the multi-jurisdictional Saskatchewan River Basin in Western Canada. Our findings reveal that an economically optimal water allocation strategy can mitigate the economic losses of water stress up to 80% compared to the existing water allocation strategy. We draw lessons from our analysis and discuss how integrated inter-regional hydro-economic modelling can benefit vulnerability assessment and robust decision making. (c) 2021 Elsevier B.V. All rights reserved.
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