Integrated hydro-economic models as a tool for the sustainable management of water resources

Abstract

OPEN ACCESSThis open-access article is distributed under the terms of the Creative Commons Attribution Non-Commercial License (CC BY-NC) (http:// creativecommons.org/licenses/by-nc/4.0/), which permits reuse, distribution and reproduction of the article, provided that the original work is properly cited and the reuse is restricted to noncommercial purposes. For commercial reuse, contact reprints@pulsus.com I mplementation of the complex analysis of the effectiveness of application of various instruments and measures for water use and protection can be done through the integration of technical, economic, environmental, legal and social indicators of water status. For this purpose, integrated decisionmaking and management modeling systems can be used, with the aim of defining effective and sustainable water management strategies. In this respect, integrated hydro-economic models can play a key role, primarily at river basin level.Throughout history, the underlying ideas and concepts of engineering and economics were often intertwined (1). The complexity of the interaction between water resource management and economic indicators can be demonstrated through integrated mathematical [hydroeconomic] models that link hydrological and biogeochemical processes to economic supply and demand laws (2). The use of hydro-economic models in water management implies defining the physical behavior of the system, with a realistic representation of surface water and groundwater resources, including their interaction, and estimating the spatial and temporal variability of their availability (3).The basic and first step in the development of the hydro-economic model is to define the main components of the model. Most hydro-economic models include hydrological data, water infrastructure, economic water demand, operational costs, and operational rules (4). The hydrological data, in the broad sense, include hydrological [surface water] and hydrogeological [groundwater] parameters, rainfall, inflow and drainage or supply of the observed area. The water infrastructure consists of natural and constructed facilities [rivers, pipelines, reservoirs, canals, aquifers, waterworks, water treatment plants, water drainage facilities, water supply sites etc.] for the storage, transportation, treatment and use of water. Defining economic water demand can be done with functions that provide information on gross economic revenue within a certain timeframe of modeling (5). Operating costs include pumping, treating, artificial power, and any other costs related to water transport (4). These main components of the hydro-economic model can be supplemented by complementary elements of the model, such as polluting emissions, environmentally sensitive areas, but also institutional and legislative elements, such as constraints stemming from national and international agreements and national legislation.The main features of the model [hydrological, economic, etc.] are defined within separate modules, which are integrated into a unique hydro-economic model. T...

Ecosystem Services into Water Resource Planning and Management

“…These models have gained traction in the field of WRM as well as climate and adaptation projects, agricultural issues, and policymaking (Blanco-Gutiérrez et al, 2013;Nakic, 2017). Nonetheless, Nakic (2017) notes that applying HEM comes with significant challenges, among which are the appropriate description of the system, and the availability of precis and detailed data.…”

“…These models have gained traction in the field of WRM as well as climate and adaptation projects, agricultural issues, and policymaking (Blanco-Gutiérrez et al, 2013;Nakic, 2017). Nonetheless, Nakic (2017) notes that applying HEM comes with significant challenges, among which are the appropriate description of the system, and the availability of precis and detailed data. Defining the model and the way they will interact is a tough task, as it requires data relative with hydrology, water infrastructure and the economy, combined with a through understanding of the underlying processes stemming from multiple scientific fields.…”

Comparing Two Hydro-Economic Approaches for Multi-Objective Agricultural Water Resources Planning

“…Hence, Hydro-Economic Models (HEMs) are increasingly used, in water resources management, agricultural issues, policymaking, and other fields with many extents, such as climate change, projects and planning, etc. (Blanco-Gutiérrez et al 2013;Nakic 2017).…”

“…The main challenge in the development of a HEM is the appropriate description of the system, and for this, adequate and necessary data is needed. Defining the main components of the model and the way they will interact is a tough task, as it needs knowledge/understanding and data relative with hydrology, water infrastructure, economy, supply and demand operations in water and economic terms, and impacts or interactions with case-specific parameters (Nakic 2017). For each one of the above components the literature may be rich, but the guidance for the combined simulation is poor, since the experience is limited, and case-specific factors are the main drivers affecting the models' structure.…”