Water-Energy Nexus-Based Economic Optimization of Water Supply Projects
Publication: Journal of Water Resources Planning and Management
Volume 147, Issue 8
Abstract
This paper adopts the water-energy nexus approach to investigate the economic impacts of costly energy-intensive water supply projects. An integrated modeling framework is proposed for the regional-scale management of water and energy resources that incorporates the energy input-output analysis (EIOA) within a hybrid genetic algorithm-linear programming (GA-LP) optimization model, maximizing the gross domestic product (GDP). As a general framework, the proposed approach captures the trade-offs between water and energy in the technologies used for the production of other goods and services than water and energy. The framework is used to evaluate the economic gains of the nonlocal water supply projects, including water transfer and desalination in the Kerman province of Iran, where water shortages loom. The model determines the optimal allocation of newly supplied water to the economic sectors given the energy and water prices, the structure of production sectors, local resource constraints, and economic sectors’ production capacities. The production capacities of all sectors, except water and energy, are exogenously expanded by 50%, which is in line with the projected population growth over 25 years (project’s lifetime). Results reveal that in the absence of water supply projects, Kerman’s GDP grows at 35% over 25 years. Meanwhile, the implementation of water supply projects increases Kerman’s economic growth by 5% but requires around 2 TW · h of additional electricity and 735 mcm of additional water. Results also indicate under the optimal condition found that the GDP is influenced more by water allocation policies and less by the amount of water supplied from the nonlocal water source, which highlights the significance of nonstructural measures.
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Data Availability Statement
All data used during the study are available online in accordance with funder data retention policies [Iran’s IO Table 2011 (SCI 2020), Kerman’s Accounting Data 2011 (SCI 2020), Iran’s Energy Balance Sheet 2011, and Energy Balance Sheet Report (2011)]. Additionally, because English versions of the named datasets do not exist, the data used in this research were translated, organized, and presented in the form of an .xlsx file in which the process of creating the EIOA model from the original data is identified. The .xlsx file can be provided by the authors upon request.
Acknowledgments
The authors would like to appreciate the technical studies office of Iran’s National Water and Wastewater Engineering Cooperation and Iran’s Ministry of Energy for providing data and intangible support for this study. This research did not receive any specific grant from funding agencies in the public, commercial, or not-for-profit sectors.
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Published In
Journal of Water Resources Planning and Management
Volume 147 • Issue 8 • August 2021
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© 2021 American Society of Civil Engineers.
History
Received: Dec 12, 2019
Accepted: Dec 10, 2020
Published online: May 19, 2021
Published in print: Aug 1, 2021
Discussion open until: Oct 19, 2021
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