IDEAS home Printed from https://ideas.repec.org/a/kap/enreec/v88y2025i3d10.1007_s10640-024-00948-w.html
   My bibliography  Save this article

Balancing Efficiency and Inequality in a Non-Linear Multi-Regional Water Allocation Optimization Model

Author

Listed:
  • Iban Ortuzar

    (University of Waterloo)

  • Ana Serrano

    (University of Zaragoza)

  • Angels Xabadia

    (University of Girona)

  • Roy Brouwer

    (University of Waterloo)

Abstract

Accounting for green and blue water resources, this study determines the optimal allocation of water between economic sectors under varying drought circumstances, applying non-linear optimization in a multi-regional input-output modeling framework. The results are compared to the regulated reallocation of water under existing regional drought warning and emergency plans. The analysis reveals that substantial economic gains can be achieved when considering efficiency in inter-sectoral water reallocation policies, mitigating value added losses. However, such optimal water allocation leads to greater inequality compared to the current drought policy measures. Extending the model and combining efficiency and equality concerns yields a production possibility frontier for second-best allocations that accounts for the distributional impacts of water reallocations under droughts. Notably, our findings demonstrate that there is potential for a more efficient distribution that is equal to the distributional impacts under the existing drought warning and emergency plans at lower total economic resource scarcity costs.

Suggested Citation

  • Iban Ortuzar & Ana Serrano & Angels Xabadia & Roy Brouwer, 2025. "Balancing Efficiency and Inequality in a Non-Linear Multi-Regional Water Allocation Optimization Model," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 88(3), pages 761-794, March.
    • Handle: RePEc:kap:enreec:v:88:y:2025:i:3:d:10.1007_s10640-024-00948-w
    DOI: 10.1007/s10640-024-00948-w
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10640-024-00948-w
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10640-024-00948-w?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:enreec:v:88:y:2025:i:3:d:10.1007_s10640-024-00948-w. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.