Optimization of economic return from water using water-energy-food nexus approach: A case of Karnafuli Basin, Bangladesh

Abstract

This study evaluates the existing situation of the water energy and food resource interaction using an indicator-based approach and optimizes the resource use in the Karnafuli River Basin. A water allocation model based on an optimization tool, LINDO 6.1, with an objective function to maximize the economic return, is developed to allocate water to different water use sectors (domestic, agriculture, energy, industry, and environment) in the basin. It is observed that 14.58 m3 of water is required to generate 1 kWh of energy in Kaptai hydropower plant, while 4500 m3 of water is consumed to produce 1 ton of crops in the basin. Due to improper management, around 12,500 ha of land under the Karnafuli Irrigation Project remains un-irrigated, which can be cultivated with high-yield Boro crop. Results show that by prioritizing the agriculture sector, a maximum economic return of US$ 30.3 million can be obtained; however, with this only 55% of the satisfaction level is achieved for the environment sector. Systematic and integrated management of the resources is required in Karnafuli Basin for socioeconomic and sustainable development.