Calibrating disaggregate economic models of agricultural production and water management

Howitt, Richard E.; Medellín–Azuara, Josué; MacEwan, Duncan; Lund, Jay R.

doi:10.1016/j.envsoft.2012.06.013

Cited by 124 publications

(90 citation statements)

References 22 publications

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“…Studies in California and Australia demonstrate the large gains of water markets, both potential gains in California [22,30] and actual gains in Australia [24,25].…”

Section: Discussionmentioning

confidence: 99%

“…Previous studies in the literature consider that water trading is a flexible and efficient way to address water allocation problems [20][21][22]. These studies indicate that water markets may increase water use efficiency, avoid the development of new costly water resources, and achieve significant welfare gains by reallocating water from crops with low to high marginal value of water.…”

Section: Types Of Policy Instrumentsmentioning

confidence: 99%

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Improving the Performance of Water Policies: Evidence from Drought in Spain

Kahil

Albiac

Dinar

et al. 2016

Water

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Water scarcity is a critical environmental issue worldwide, especially in arid and semiarid regions. In those regions, climate change projections suggest further reductions in freshwater supplies and increases of the recurrence, longevity and intensity of drought events. At present, one important question for policy debate is the identification of water policies that could address the mounting water scarcity problems. Suitable policies should improve economic efficiency, achieve environmental sustainability, and meet equity needs. This paper develops and applies an integrated hydro-economic model that links hydrological, economic and environmental elements to such issues. The model is used to conduct a direct comparison of water markets, water pricing and institutional cooperation, based on their economic, environmental and equity outcomes. The analysis is performed in the Jucar Basin of Spain, which is a good natural experiment for studying water scarcity and climate change policies. Results indicate that both institutional and water market policies are high performing instruments to limit the economic damage costs of droughts, achieving almost the same social benefits. However, the environmental effects of water markets are worrying. Another important finding is that water pricing is a poor policy option not only in terms of private and environmental benefits but also in terms of equity.

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“…Studies in California and Australia demonstrate the large gains of water markets, both potential gains in California [22,30] and actual gains in Australia [24,25].…”

Section: Discussionmentioning

confidence: 99%

Section: Types Of Policy Instrumentsmentioning

confidence: 99%

Improving the Performance of Water Policies: Evidence from Drought in Spain

Kahil

Albiac

Dinar

et al. 2016

Water

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“…The new groundwater representation better reconciles surface hydrology, groundwater estimates, and water demands, producing better results of annual agricultural water scarcity and groundwater overdraft in the new base case. In addition to groundwater representation updates, we revised agricultural water demands based on the latest results of the SWAP crop production model (Howitt et al 2012). Finally, Delta outflow and pumping constraints for Banks and Tracy were updated based on the CalSim II model (CDWR 2011).…”

Section: Groundwater Sub-basinsmentioning

confidence: 99%

Economic and Water Supply Effects of Ending Groundwater Overdraft in California's Central Valley

Nelson

Chou

Zikalala

et al. 2016

SFEWS

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Surface water and groundwater management are often tightly linked, even when linkage is not intended or expected. This link is especially common in semi-arid regions, such as California. This paper summarizes a modeling study on the effects of ending long-term overdraft in California's Central Valley, the state's largest aquifer system. The study focuses on economic and operational aspects, such as surface water pumping and diversions, groundwater recharge, water scarcity, and the associated operating and water scarcity costs. This analysis uses CALVIN, a hydro-economic optimization model for California's water resource system that suggests operational changes to minimize net system costs for a given set of conditions, such as ending long-term overdraft. Based on model results, ending overdraft might induce some major statewide operational changes, including large increases to Delta exports, more intensive conjunctive-use operations with increasing artificial and in-lieu recharge, and greater water scarcity for Central Valley agriculture. The statewide costs of ending roughly 1.2 maf yr -1 of groundwater overdraft are at least $50 million per year from additional direct water shortage and additional operating costs. At its worst, the costs of ending Central Valley overdraft could be much higher, perhaps comparable to the recent economic effects of drought. Driven by recent state legislation to improve groundwater sustainability, ending groundwater overdraft has important implications statewide for water use and management, particularly in the Sacramento-San Joaquin Delta. Ending Central Valley overdraft will amplify economic pressure to increase Delta water exports rather than reduce them, tying together two of California's largest water management problems.

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“…To avoid generating crop adaptation equations, Howitt et al [48] linked C2VSim and the Statewide Agricultural Production (SWAP) model [53], an enhanced version of CVPM, to quantify the economic impact of the 2012-2016 droughts on California's agricultural industry during 2014. Their study also tried to estimate the impact if the drought lasted another two years through 2016.…”

Section: Impact Of 2012-2016 Drought On California's Agricultural Ecomentioning

confidence: 99%

Groundwater Modeling in Support of Water Resources Management and Planning under Complex Climate, Regulatory, and Economic Stresses

Dogrul¹,

Brush²,

Kadir³

2016

Water

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Abstract:Groundwater is an important resource that meets part or all of the water demand in many developed basins. Since it is an integral part of the hydrologic cycle, management of groundwater resources must consider not only the management of surface flows but also the variability in climate. In addition, agricultural and urban activities both affect the availability of water resources and are affected by it. Arguably, the Central Valley of the State of California, USA, can be considered a basin where all stresses that can possibly affect the management of groundwater resources seem to have come together: a vibrant economy that depends on water, a relatively dry climate, a disparity between water demand and availability both in time and space, heavily managed stream flows that are susceptible to water quality issues and sea level rise, degradation of aquifer conditions due to over-pumping, and degradation of the environment with multiple species becoming endangered. Over the past fifteen years, the California Department of Water Resources has developed and maintained the Integrated Water Flow Model (IWFM) to aid in groundwater management and planning under complex, and often competing, requirements. This paper will describe features of IWFM as a generic modeling tool, and showcase several of its innovative applications within California.

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Calibrating disaggregate economic models of agricultural production and water management

Cited by 124 publications

References 22 publications

Improving the Performance of Water Policies: Evidence from Drought in Spain

Improving the Performance of Water Policies: Evidence from Drought in Spain

Economic and Water Supply Effects of Ending Groundwater Overdraft in California's Central Valley

Groundwater Modeling in Support of Water Resources Management and Planning under Complex Climate, Regulatory, and Economic Stresses

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