Hydro-economic Modeling in River Basin Management: Implications and Applications for the European Water Framework Directive |
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| Authors: | I Heinz M Pulido-Velazquez J R Lund J Andreu |
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| Affiliation: | (1) Institute of Environmental Research, University of Dortmund, Dortmund, Germany;(2) IIAMA (Institute for Water and Environmental Engineering), Technical University of Valencia, Valencia, Spain;(3) Department of Civil and Environmental Engineering, University of California, Davis, USA |
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| Abstract: | Economic ideas and processes are becoming increasingly integrated with more traditional engineering and hydrologic models
of water management problems. Combining economic management concepts and performance indicators with an engineering-level
of understanding of a hydrologic system can provide results and insights more directly relevant for water management decisions
and policies. When such models are developed and used with involvement of stakeholders, they can become a basis for shared
understanding of water problems as a foundation for negotiated management and policy solutions. When implemented with optimization
software, integrated hydro-economic models also can suggest promising innovative solutions for policy-makers to consider.
Their applications to river basin management problems are reviewed. Economic and integrated economic-engineering-hydrologic
modeling is then discussed in the context of the evolving European Water Framework Directive. Relevant items are cost recovery
and water pricing, cost-effectiveness of water management measures, and public participation in decision processes. |
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| Keywords: | water management modeling economics environmental costs cost recovery water pricing water allocation cost-effectiveness cost benefit analysis optimization water policy European Union |
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