scholarly journals Protecting environmental flows through enhanced water licensing and water markets

2014 ◽  
Vol 11 (3) ◽  
pp. 2967-3003 ◽  
Author(s):  
T. Erfani ◽  
O. Binions ◽  
J. J. Harou
Keyword(s):  
River Basin ◽  
Water Scarcity ◽  
Environmental Flows ◽  
Water Rights ◽  
Spot Market ◽  
Economic Benefits ◽  
Water Markets ◽  
Water Abstraction ◽  
Ecological Requirements ◽  
Basin Scale

Abstract. To enable economically efficient future adaptation to water scarcity some countries are revising water management institutions such as water rights or licensing systems to more effectively protect ecosystems and their services. Allocating more flow to the environment though can mean less abstraction for economic production, or the inability to accommodate new entrants (diverters). Modern licensing arrangements should simultaneously enhance environmental flows and protect water abstractors who depend on water. Making new licensing regimes compatible with tradable water rights is an important component of water allocation reform. Regulated water markets can help decrease the societal cost of water scarcity whilst enforcing environmental and/or social protections. In this article we simulate water markets under a regime of fixed volumetric water abstraction licenses with fixed minimum flows or under a scalable water license regime (using water "shares") with dynamic environmental minimum flows. Shares allow adapting allocations to available water and dynamic environmental minimum flows can vary as a function of ecological requirements. We investigate how a short-term spot market manifests within each licensing regime. We use a river-basin-scale hydro-economic agent model that represents individual abstractors and can simulate a spot market under both licensing regimes. We apply this model to the Great Ouse river basin in Eastern England with public water supply, agricultural, energy and industrial water using agents. Results show the proposed shares with dynamic environmental flow licensing system protects river flows more effectively than the current static minimum flow requirements during a dry historical year, but that the total opportunity cost to water abstractors of the environmental gains is a 10 to 15% loss in economic benefits.

scholarly journals Protecting environmental flows through enhanced water licensing and water markets

2015 ◽  
Vol 19 (2) ◽  
pp. 675-689 ◽  
Author(s):  
T. Erfani ◽  
O. Binions ◽  
J. J. Harou
Keyword(s):  
River Basin ◽  
Water Scarcity ◽  
Environmental Flows ◽  
Water Rights ◽  
Spot Market ◽  
Economic Benefits ◽  
Water Markets ◽  
Water Abstraction ◽  
Ecological Requirements ◽  
Basin Scale

Abstract. To enable economically efficient future adaptation to water scarcity some countries are revising water management institutions such as water rights or licensing systems to more effectively protect ecosystems and their services. However, allocating more flow to the environment can mean less abstraction for economic production, or the inability to accommodate new entrants (diverters). Modern licensing arrangements should simultaneously enhance environmental flows and protect water abstractors who depend on water. Making new licensing regimes compatible with tradable water rights is an important component of water allocation reform. Regulated water markets can help decrease the societal cost of water scarcity whilst enforcing environmental and/or social protections. In this article we simulate water markets under a regime of fixed volumetric water abstraction licenses with fixed minimum flows or under a scalable water license regime (using water "shares") with dynamic environmental minimum flows. Shares allow adapting allocations to available water and dynamic environmental minimum flows vary as a function of ecological requirements. We investigate how a short-term spot market manifests within each licensing regime. We use a river-basin-scale hydroeconomic agent model that represents individual abstractors and can simulate a spot market under both licensing regimes. We apply this model to the Great Ouse River basin in eastern England with public water supply, agricultural, energy and industrial water-using agents. Results show the proposed shares with dynamic environmental flow licensing system protects river flows more effectively than the current static minimum flow requirements during a dry historical year, but that the total opportunity cost to water abstractors of the environmental gains is a 10–15% loss in economic benefits.

scholarly journals Optimal operation of a multipurpose multireservoir system in the Eastern Nile River Basin

2010 ◽  
Vol 14 (10) ◽  
pp. 1895-1908 ◽  
Author(s):  
Q. Goor ◽  
C. Halleux ◽  
Y. Mohamed ◽  
A. Tilmant
Keyword(s):  
River Basin ◽  
Economic Benefits ◽  
Optimal Operation ◽  
Nile River ◽  
Hydropower Generation ◽  
Blue Nile ◽  
High Aswan Dam ◽  
Basin Scale ◽  
Aswan Dam ◽  
Nile River Basin

Abstract. The upper Blue Nile River Basin in Ethiopia is a largely untapped resource despite its huge potential for hydropower generation and irrigated agriculture. Controversies exist as to whether the numerous infrastructural development projects that are on the drawing board in Ethiopia will generate positive or negative externalities downstream in Sudan and Egypt. This study attempts at (1) examining the (re-)operation of infrastructures, in particular the proposed reservoirs in Ethiopia and the High Aswan Dam and (2) assessing the economic benefits and costs associated with the storage infrastructures in Ethiopia and their spatial and temporal distribution. To achieve this, a basin-wide integrated hydro-economic model has been developed. The model integrates essential hydrologic, economic and institutional components of the river basin in order to explore both the hydrologic and economic consequences of various policy options and planned infrastructural projects. Unlike most of the deterministic economic-hydrologic models reported in the literature, a stochastic programming formulation has been adopted in order to: (i) understand the effect of the hydrologic uncertainty on management decisions, (ii) determine allocation policies that naturally hedge against the hydrological risk, and (iii) assess the relevant risk indicators. The study reveals that the development of four mega dams in the upper part of the Blue Nile Basin would change the drawdown refill cycle of the High Aswan Dam. Should the operation of the reservoirs be coordinated, they would enable an average annual saving of at least 2.5 billion m3 through reduced evaporation losses from the Lake Nasser. Moreover, the new reservoirs (Karadobi, Beko-Abo, Mandaya and Border) in Ethiopia would have significant positive impacts on hydropower generation and irrigation in Ethiopia and Sudan: at the basin scale, the annual energy generation is boosted by 38.5 TWh amongst which 14.2 TWh due to storage. Moreover, the regulation capacity of the above mentioned reservoirs would enable an increase of the Sudanese irrigated area by 5.5%.

scholarly journals Optimal operation of a multipurpose multireservoir system in the Eastern Nile River Basin

2010 ◽  
Vol 7 (4) ◽  
pp. 4331-4369 ◽  
Author(s):  
Q. Goor ◽  
C. Halleux ◽  
Y. Mohamed ◽  
A. Tilmant
Keyword(s):  
River Basin ◽  
Economic Benefits ◽  
Optimal Operation ◽  
Nile River ◽  
Hydropower Generation ◽  
Blue Nile ◽  
High Aswan Dam ◽  
Basin Scale ◽  
Aswan Dam ◽  
Nile River Basin

Abstract. The upper Blue Nile River Basin in Ethiopia is a largely untapped resource despite its huge potential for hydropower generation and irrigated agriculture. Controversies exist as to whether the numerous infrastructural development projects that are on the drawing board in Ethiopia will generate positive or negative externalities downstream in Sudan and Egypt. This study attempts at 1) examining the (re-)operation of infrastructures, in particular the proposed reservoirs in Ethiopia and the High Aswan Dam and 2) assessing the economic benefits and costs associated with the storage infrastructures in Ethiopia and their spatial and temporal distribution. To achieve this, a basin-wide integrated hydro-economic model has been developed. The model integrates essential hydrologic, economic and institutional components of the river basin in order to explore both the hydrologic and economic consequences of various policy options and planned infrastructural projects. Unlike most of the deterministic economic-hydrologic models reported in the literature, a stochastic programming formulation has been adopted in order to: i) understand the effect of the hydrologic uncertainty on management decisions, ii) determine allocation policies that naturally hedge against the hydrological risk, and iii) assess the relevant risk indicators. The study reveals that the development of four mega dams in the upper part of the Blue Nile Basin would change the drawdown refill cycle of the High Aswan Dam. Should the operation of the reservoirs be coordinated, they would enable an average annual saving of at least 2.5 billion m3 through reduced evaporation losses from the Lake Nasser. Moreover, the new reservoirs (Karadobi, Beko-Abo, Mandaya and Border) in Ethiopia would have significant positive impacts on hydropower generation and irrigation in Ethiopia and Sudan: at the basin scale, the annual energy generation is boosted by 38.5 TWh amongst which 14.2 TWh due to storage. Moreover, the regulation capacity of the above mentioned reservoirs would enable an increase of the Sudanese irrigated area by 5.5%.

scholarly journals Managing Water Scarcity at a River Basin Scale with Economic Instruments

2018 ◽  
Vol 04 (01) ◽  
pp. 1750004 ◽  
Author(s):  
Carlos Mario Gómez Gómez ◽  
C. D. Pérez-Blanco ◽  
David Adamson ◽  
Adam Loch
Keyword(s):  
Water Management ◽  
Transaction Costs ◽  
River Basin ◽  
Water Scarcity ◽  
River Basin Management ◽  
Welfare Economic ◽  
Full Potential ◽  
Economic Instruments ◽  
Basin Scale ◽  
Individual Decisions

This paper presents a conceptual framework for both assessing the role of economic instruments, and reshaping them in order to enhance their contribution to the goals of managing water scarcity. Water management problems stem from the mismatch between a multitude of individual decisions, on the one hand, and the current and projected status of water resources on the other. Economics can provide valuable incentives that drive individual decisions, and can design efficient instruments to address water governance problems in a context of conflicting interests and relevant transaction costs. Yet, instruments such as water pricing or trading are mostly based on general principles of welfare economics that are not readily applicable to assets as complex as water. A flaw in welfare economic approaches lies in the presumption that economic instruments may be good or bad on their own (e.g., finding the “right” price). This vision changes radically when we focus on the problem, instead of the instrument. In this paper, we examine how economic instruments to achieve welfare-enhancing water resource outcomes can realize their full potential in basin-scale management contexts. We follow a political economy perspective that views conflicts between public and private interest as the main instrumental challenge of water management. Our analysis allows us to better understand the critical importance of economic instruments for reconciling individual actions towards collective ambitions of water efficiency, equity and sustainability with lessons for later-adopting jurisdictions. Rather than providing panaceas, the successful design and implementation of economic instruments as key river basin management arrangements involves high transaction costs, wide institutional changes and collective action at different levels.

Water markets as a response to scarcity

Water Policy ◽  
2014 ◽  
Vol 16 (4) ◽  
pp. 625-649 ◽  
Author(s):  
Peter Debaere ◽  
Brian D. Richter ◽  
Kyle Frankel Davis ◽  
Melissa S. Duvall ◽  
Jessica Ann Gephart ◽  
...  
Keyword(s):  
Economic Theory ◽  
Water Scarcity ◽  
Direct Evidence ◽  
Water Governance ◽  
Water Rights ◽  
Water Markets ◽  
Water Users ◽  
Voluntary Exchange ◽  
Governance Systems ◽  
Productive Water

Existing water governance systems are proving to be quite ineffective in managing water scarcity, creating severe risk for many aspects of our societies and economies. Water markets are a relatively new and increasingly popular tool in the fight against growing water scarcity. They make a voluntary exchange possible between interested buyers and sellers of water rights. This paper presents direct evidence from seven water markets around the globe to document key economic and ecological challenges and achievements of water markets with respect to water scarcity. We specifically approach water markets as localized cap-and-trade systems, similar to those for carbon emissions. We examine whether water use remains within the set limits on use of water rights (i.e., under the cap), the degree to which water markets help protect the health of ecosystems and species, and whether (as predicted by economic theory) the explicit pricing of water is accompanied by improving efficiency, as less productive water users decide to sell water to more productive water users.

scholarly journals Water Resources Allocation Systems under Irrigation Expansion and Climate Change Scenario in Awash River Basin of Ethiopia

Water ◽  
2019 ◽  
Vol 11 (10) ◽  
pp. 1966 ◽  
Author(s):  
Mohammed Gedefaw ◽  
Hao Wang ◽  
Denghua Yan ◽  
Tianling Qin ◽  
Kun Wang ◽  
...  
Keyword(s):  
Water Resources ◽  
River Basin ◽  
Water Scarcity ◽  
Optimal Allocation ◽  
Baseline Period ◽  
Economic Benefits ◽  
Change Scenario ◽  
Water Shortages ◽  
Weap Model ◽  
Awash River Basin

Rational allocation of water resources is very essential to cope with water scarcity. The optimal allocation of limited water resources is required for various purposes to achieve sustainable development. The Awash River Basin is currently faced with a scarcity of water due to increasing demands, urbanization, irrigation expansion, and variability of climates. The excessive abstraction of water resources in the basin without proper assessing of the available water resources contributed to water scarcity. This paper aimed to develop a water evaluation and planning (WEAP) model to allocate the water supplies to demanding sectors based on an economic parameter to maximize the economic benefits. The water demands, water shortages, and supply alternatives were analyzed under different scenarios. Three scenarios were developed, namely reference (1981–2016), medium-term development (2017–2030), and long-term development (2031–2050) future scenarios with the baseline period (1980). The results of this study showed that the total quantity of water needed to meet the irrigation demands of all the stations was 306.96 MCM from 1980 to 2016. Seasonally, March, April, May, and June require the maximum irrigation water demand. However, July, August, and September require minimum demand for water because of the rainy season. The seasonal unmet demand is observed in all months, which ranged from 6 × 106 m3 to 35.9 × 106 m3 in August and May respectively. The trend of streamflow in Melka Kuntre was a statistically significant increasing trend after 2008 (Z = 5.33) whereas the trends in other gauge stations showed a relatively decreasing trend. The results also showed that future water consumption would greatly increase in the Awash River Basin. The prevention of future water shortages requires the implementation of water-saving measures and the use of new water supply technologies. The findings of this study will serve as a reference for water resources managers and policy and decision makers.

scholarly journals Economic and hydrological impacts of the Grand Ethiopian Renaissance Dam on the Eastern Nile River Basin

2015 ◽  
Vol 21 (4) ◽  
pp. 532-555 ◽  
Author(s):  
Getachew Nigatu ◽  
Ariel Dinar
Keyword(s):  
River Basin ◽  
Water Rights ◽  
Economic Benefits ◽  
Status Quo ◽  
Nile River ◽  
Social Planner ◽  
The Social ◽  
The Status ◽  
Nile River Basin ◽  
Alternative Water

AbstractWe propose an ‘allocate-and-trade’ institution to manage the eastern Nile River Basin for Ethiopia, Sudan and Egypt as the basin faces a new reality of the Grand Ethiopian Renaissance Dam (GERD). We find that a social planner could increase the region's economic welfare by assigning water rights to the riparian states. An alternative intrabasin water rights arrangement and trade could achieve more than 95 per cent of the welfare created by the social planner. GERD will change both the economic benefits and hydrological positions of the riparian countries. Economic benefits from alternative water use would be sufficient to make riparian countries better off compared with the status quo. Furthermore, riparian countries could raise more than US$680 m annually for protecting and conserving the natural resources of the region.

Innovative Tools for Water Quality Management and Policy Analysis: Desert and Streamplan

1999 ◽  
Vol 40 (10) ◽  
pp. 103-110
Author(s):  
Carlo De Marchi ◽  
Pavel Ivanov ◽  
Ari Jolma ◽  
Ilia Masliev ◽  
Mark Griffin Smith ◽  
...  
Keyword(s):  
Water Quality ◽  
Quality Management ◽  
Policy Analysis ◽  
River Basin ◽  
Emission Reduction ◽  
Water Quality Management ◽  
Water Quality Modeling ◽  
Detailed Model ◽  
Basin Scale ◽  
Alternative Water

This paper presents the major features of two decision support systems (DSS) for river water quality modeling and policy analysis recently developed at the International Institute of Applied Systems Analysis (IIASA), DESERT and STREAMPLAN. DESERT integrates in a single package data management, model calibration, simulation, optimization and presentation of results. DESERT has the flexibility to allow the specification of both alternative water quality models and flow hydraulics for different branches of the same river basin. Specification of these models can be done interactively through Microsoft® Windows commands and menus and an easy to use interpreted language. Detailed analysis of the effects of parameter uncertainty on water quality results is integrated into DESERT. STREAMPLAN, on the other hand, is an integrated, easy-to-use software system for analyzing alternative water quality management policies on a river basin level. These policies include uniform emission reduction and effluent standard based strategies, ambient water quality and least-cost strategies, total emission reduction under minimized costs, mixed strategies, local and regional policies, and strategies with economic instruments. A distinctive feature of STREAMPLAN is the integration of a detailed model of municipal wastewater generation with a water quality model and policy analysis tools on a river basin scale.

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