In 2014, California passed legislation requiring the sustainable management of critically overdrafted groundwater basins, located primarily in the Central Valley agricultural region. Hydroeconomic modeling of the agricultural economy, groundwater, and surface water systems is critically important to simulate potential transition paths to sustainable management of the basins. The requirement for sustainable groundwater use by 2040 is mandated for many overdrafted groundwater basins that are decoupled from environmental and river flow effects. We argue that, for such cases, a modeling approach that integrates a biophysical response function from a hydrologic model into an economic model of groundwater use is preferable to embedding an economic response function in a complex hydrologic model as is more commonly done. Using this preferred approach, we develop a dynamic hydroeconomic model for the Kings and Tulare Lake subbasins of California and evaluate three groundwater management institutions—open access, perfect foresight, and managed pumping. We quantify the costs and benefits of sustainable groundwater management, including energy pumping savings, drought reserve values, and avoided capital costs. Our analysis finds that, for basins that are severely depleted, losses in crop net revenue are offset by the benefits of energy savings, drought reserve value, and avoided capital costs. This finding provides an empirical counterexample to the Gisser and Sanchez Effect.
A new stochastic model for unconfined groundwater flow is proposed. The developed evolution equation for the probabilistic behavior of unconfined groundwater flow results from random variations in hydraulic conductivity, and the probabilistic description for the state variable of the nonlinear stochastic unconfined flow process becomes a mixed Eulerian-Lagrangian-Fokker-Planck equation (FPE). Furthermore, the FPE is a deterministic, linear partial differential equation (PDE) and has the advantage of providing the probabilistic solution in the form of evolutionary probability density functions. Subsequently, the Boussinesq equation for one-dimensional unconfined groundwater flow is converted into a nonlinear ordinary differential equation (ODE) and a twopoint boundary value problem through the Boltzmann transformation. The resulting nonlinear ODE is converted to the FPE by means of ensemble average conservation equations. The numerical solutions of the FPE are validated with Monte Carlo simulations under varying stochastic hydraulic conductivity fields. Results from the model application to groundwater flow in heterogeneous unconfined aquifers illustrate that the time-space behavior of the mean and variance of the hydraulic head are in good agreement for both the stochastic model and the Monte Carlo solutions. This indicates that the derived FPE, as a stochastic model of the ensemble behavior of unconfined groundwater flow, can express the spatial variability of the unconfined groundwater flow process in heterogeneous aquifers adequately. Modeling of the hydraulic head variance, as shown here, will provide a measure of confidence around the ensemble mean behavior of the hydraulic head.
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