Abstract
Chance constrained mathematical programming was used to compare the effects of two different crop yield relationships on the economic cost to irrigation farmers while maintaining an instream flow requirement. Results showed that the Stewart-Hagan programming model underestimated the economic cost and overestimated potential return flows. Water policies based on this model will lead to the implementation of socially unacceptable water allocation policies that may even apply more pressure on stream flows. Meaningful water policies could only be advanced by a thorough understanding of the economic and hydrological consequences of alternative water allocation policies through the integration of economic and hydrological models at catchment level.
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