Integrating water science, economics, and policy for future climate adaptation

Abstract

Water science, water economics, and water policy issues continue to rise in importance internationally as elevated population, income growth, and climate change magnify scarcity, shortages, and injustices in water access. Based on the unique physical, institutional, and economic characteristics of water, this work's first contribution is to characterize a road forward for research innovations that enable better integration of water science, water economics, and water policy. Meeting water's sustainable development and justice goals calls for several research innovations that humanity awaits. The advances called for in this work include deep uncertainty management, red team reviews, innovative water rights design, accelerating SDG achievement, valuing water infrastructure, valuing natural water retention, incentivizing water conservation, improving financial performance of rural water systems, water network modularization, non-price scarcity signals, optimization model calibration, remote sensing, transboundary benefit sharing, optimal growth, and water valuation. The work's second contribution is to present a prototype scalable basin scale hydroeconomic analysis (HEA) as a framework for integrating these above innovations when they occur. Results of the HEA show that losses from a 50% shortage in the basin's surface water supply can continue to protect 93% of total economic benefits across economic sectors if an efficient water trading system is established to move water from lower to higher valued uses when shortages occur. The work concludes by noting that great advances remain needed for better and longer lives.