A Water Allocation Model for Multiple Uses Based on a Proposed Hydro-Economic Method

Water scarcity drives society to conflict over the allocation of water. Economical externalities based on the development of water production improve the decision-making process for planning water allocation and the operation of the water infrastructure. We present a proposed water allocation model using a priority-based and hydro-economic optimization kernel as a framework for improving the quality of information for the different user sectors, stakeholders, and institutions for the water allocation decision-making process. In addition, we propose a method for using hydro-economic optimization models without the marginal benefit curve of water demand. The proposed model, called AcquaNetGIS, was applied to the Sao Francisco Transboundary System, and the hydro-economic optimization was improved, allocating 7.0% more water for all users considered, including water supply, irrigation, and hydropower. Moreover, the minimum flow downstream from the Xingo hydropower station reached 98.5% (priority-based optimization) and 99.0% (hydro-economic optimization) during the optimization period. Depending on the rules and legislation, the sustainability of water allocation based on hydro-economic externalities may be a better solution for the planning and operation of complex water infrastructure systems. Multicriteria decision-making methods should consider the results of the proposed model in order to understand the stochastics of the hydrological regimes and economic production based on the availability of water.