Search

Summary: Future water management will shift from building new water supply systems to better operating existing ones. The variation of water values in time and space will increasingly motivate efforts to address water scarcity and reduce water conflicts. Hydro-economic models represent spatially distributed water resource systems, infrastructure, management options and economic values in an integrated manner. In these tools water allocations and management are either driven by the economic value of water or economically evaluated to provide policy insights and reveal opportunities for better management. A central concept is that water demands are not fixed requirements but rather functions where quantities of water use at different times have varying total and marginal economic values. This paper reviews techniques to characterize the economic value of water use and include such values in mathematical models. We identify the key steps in model design and diverse problems, formulations, levels of integration, spatial and temporal scales, and solution techniques addressed and used by over 80 hydro-economic modeling efforts dating back 45-years from 23 countries. We list current limitations of the approach, suggest directions for future work, and recommend ways to improve policy relevance. [Copyright &y& Elsevier]

• CIRFs are useful for exploring risks of system failure under climate change. • Synthetic streamflow series are generated using SA and linked to climate conditions. • Logistic regression relates system responses to climate drivers. • System failure defined according to performance (reliability) and threshold. • LR model detects climate conditions which would require adaptation. Climate Impact Response Functions (CIRFs) can be useful for exploring potential risks of system failure under climate change. The performance of a water resource system can be synthesized through a CIRF that relates climate conditions to system behavior in terms of a specified threshold of deliveries to demands or environmental flow requirements. However, in highly regulated water resource systems this relationship may be quite complex, depending on storage capacity and system operation. In this paper we define a CIRF for these types of systems through a multivariable logistic regression (LR) model where a binary variable (system response) is explained by two continuous variables or predictors (precipitation and temperature). The approach involves generating multivariate synthetic inflow time series and relating them to specific climate conditions. Next, these inflows are used as inputs in a water management model, and the outcome is coded as a binary variable (failure or its absence) depending on selected vulnerability criteria. To identify the time span before the failure event in which climate variables are relevant, we characterized drought development stages through relative standardized indices. Mean values of precipitation and temperature for the selected time span are computed and used as explanatory variables through a LR model, which is validated using data from several climate models and scenarios. Results show that the predictive capacity of LR models is acceptable, so that they could be used as screening tools to detect challenging climate conditions for the system which would require adaption actions. [ABSTRACT FROM AUTHOR]