Virtues of simple hydro-economic optimization: Baja California, Mexico.

This paper uses simple hydro-economic optimization to investigate a wide range of regional water system management options for northern Baja California, Mexico. Hydro-economic optimization models, even with parsimonious model formulations, enable investigation of promising water management portfolios for supplying water to agricultural, environmental and urban users. CALVIN, a generalized hydro-economic model, is used in a case study of Baja California. This drought-prone region faces significant challenges to supply water to agriculture and its fast growing border cities. Water management portfolios include water markets, wastewater reuse, seawater desalination and infrastructure expansions. Water markets provide the flexibility to meet future urban demands; however conveyance capacity limits their use. Wastewater reuse and conveyance expansions are economically promising. At current costs desalination is currently uneconomical for Baja California compared to other alternatives. Even simple hydro-economic models suggest ways to increase efficiency of water management in water scarce areas, and provide an economic basis for evaluating long-term water management solutions.

Economic impacts of regional ozone standards on agricultural crops.

Implementing ozone (O3) standards on regional air sheds on the basis of crop losses requires more precise analysis than statewide or even national assessments. An economic model that measures crop losses by air basins in California is described. The ability of the model to respond to subtle regional changes in O3 standards is tested. Substantial differences in economic benefits between different standards and regions result from the model simulations. Regional standards are shown to capture a large proportion of the benefits at a lower cost.