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Hydro-economic Modeling in River Basin Management: Implications and Applications for the European Water Framework Directive

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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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Heinz, I., Pulido-Velazquez, M., Lund, J.R. et al. Hydro-economic Modeling in River Basin Management: Implications and Applications for the European Water Framework Directive. Water Resour Manage 21, 1103–1125 (2007). https://doi.org/10.1007/s11269-006-9101-8

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Key words

  • water management
  • modeling
  • economics
  • environmental costs
  • cost recovery
  • water pricing
  • water allocation
  • cost-effectiveness
  • cost benefit analysis
  • optimization
  • water policy
  • European Union