Simulation Techniques for Water Project Analysis

This paper examines a research project which was designed to provide a set of analytical tools for water resource planners and decision makers to assist them in measuring and evaluating the market and nonmarket benefits and costs of water resource systems. The analyses are conducted in three major areas: economic, environmental, and social. In the economic area a regional input-output model, modified to operate in a simulation framework, is used to estimate demand and output in the regional economy subject to primary resource constraints, which include water. Environmental effects of water development and management are estimated by using a simulation model of the aquatic environment. Social impacts of water resource systems are considered by means of selected social indicators and the differences in perceived and measured changes thereto.