Optimal Development of Agricultural Sectors in the Basin Based on Economic Efficiency and Social Equality

The limitation of freshwater resources and the growing demand for water, make the issue of water resource development planning and water allocation among stakeholders even more important. Ideally, water allocation should be economically efficient and socially equitable. In this study, a water allocation model is presented in an integrated framework that considers the interaction of water supply and demand according to economic and social factors. To achieve this, a reliability-based multi-objective optimization - simulation approach has been employed. The objective functions of the problem are: 1) maximizing GDP from agricultural sectors and 2) maximizing social equality in different provinces of the basin (measured using the Williamson coefficient). The fair development and allocation among the shared provinces in the basin can reduce conflicts in the region. Karkheh basin has been considered as a case study and decision variables of the problem are area under cultivation of agricultural development sectors in different provinces. The results show that, without harming the income of the agricultural sector, the spatial distribution of development projects can be done in such a way that equality (according to income level and the number of people working in each province) is achieved. One of the solutions of Pareto front compared to previous studies shows that, in addition to an increase of about 12% of the objective function 1 (GDP), the value of the objective function 2 (Williamson coefficient) decreased from 1.19 to 0.98. This indicates a decrease in income inequality among the provinces of the basin.

Automated summary

By considering economic and social factors, this study presents a water allocation model to achieve economic efficiency and social equity in water resources. Through a case study in the Karkheh basin, it was shown that spatial distribution of development projects can balance income inequality by reducing conflicts in the region.