Hydroeconomic analysis

Peter Bauer-Gottwein, Niels Riegels, Manuel Pulido-Velazquez, Julien J. Harou, Ximing Cai, Claus Davidsen, Silvio Javier Pereira Cardenal

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Abstract

Hydroeconomic analysis and modeling provides a consistent and quantitative framework to assess the links between water resources systems and economic activities related to water use, simultaneously modeling water supply and water demand. It supports water managers and decision makers in assessing trade-offs between different water uses, different geographic regions, and various economic sectors and between the present and the future. Hydroeconomic analysis provides consistent economic performance criteria
for infrastructure development and institutional reform in water policies and management organizations. This chapter presents an introduction to hydroeconomic analysis and modeling, and reviews the state of the art in the field. We review available economic water-valuation techniques and summarize the main types of decision problems encountered in hydroeconomic analysis. Popular solution strategies for hydroeconomic problems are introduced. Typical problems and issues in real-world applications of hydroeconomic analysis and modeling are discussed. The chapter ends with a discussion of challenges, limitations, and future research directions in this field.
Original languageEnglish
Title of host publicationHandbook of Applied Hydrology
EditorsVijay P. Singh
Number of pages10
PublisherMcGraw-Hill
Publication date2017
Edition2
Chapter36
ISBN (Electronic)978-0071835091
Publication statusPublished - 2017

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