How economically and environmentally viable are multiple dams in the upper Cauvery Basin, India? A hydro-economic analysis using a landscape-based hydrological model

Abstract

Abstract. The construction of dams threatens the health of watershed ecosystems. The purpose of this study is to show how multiple dams in a basin can impact hydrological flow regimes and subsequently aquatic ecosystems that depend on river flows. The approach assesses the ecosystem services (ESs), including the tradeoffs between economic and ecological services due to altered flow regimes. It uses a previously developed model that integrates a landscape-based hydrological model with a reservoir operations model on a basin scale. The approach is novel because not only does it offer the analysis of alterations in ecosystem services on a daily scale when pre-dam data are unavailable but also allows for dams to be synthetically placed anywhere in the river network and the corresponding alterations in flow regimes to be simulated in a flexible manner. As a proof of concept, we analyse the economic and ecological performances of different spatial configuration of existing reservoirs instead of synthetically placed reservoirs in the upper Cauvery River basin in India. Such a study is timely and conducted for the first time, especially in light of calls to assess the cascade of reservoirs in India and regions elsewhere where pre-dam data are unavailable. The hydrological impact of different configurations of reservoirs is quantified using indicators of hydrologic alteration (IHAs). Additionally, the production of two major ecosystem services that depend on the flow regime of the river, as indicated by irrigated agricultural production and the normalized fish diversity index (NFDI), is estimated, and a tradeoff curve, i.e. a production possibility frontier, for the two services is established. Through the lens of the indices chosen for the ecosystem services, the results show that smaller reservoirs on lower-order streams are better for the basin economy and the environment than larger reservoirs. Cultivating irrigated crops of higher value can maximize the value of stored water and, with lower storage, generate a better economic value than cultivating lower-value crops while reducing hydrological alterations. The proposed approach, especially when simulating synthetic spatial configurations of reservoirs, can help water and river basin managers to understand the provision of ecosystem services in hydrologically altered basins, optimize dam operations, or even prioritize dam removals with a goal of achieving a balanced provision of ecosystem services.