State Water Resources Research Institute Program

Project ID: 2008HI227B
Title: Integrated Management of Multiple Aquifers in the Face of Climate Change
Project Type: Research
Start Date: 3/01/2008
End Date: 2/28/2009
Congressional District: First
Focus Categories: Economics, Management and Planning, Hydrology
Keywords: (integrated) water system management, demand management, efficiency pricing, dynamic optimization, consumer welfare, marginal user cost, climate change
Principal Investigator: Roumasset, James A.
Federal Funds: $ 20,525
Non-Federal Matching Funds: $ 34,742
Abstract: We propose an intertemporal and spatial optimization model to derive an efficient pricing scheme for the integrated water system of Southern Oahu. Welfare gains from this scheme will be analyzed and compared to those associated with the pricing scheme initiated by the Honolulu Board of Water Supply in October 2006. Recommended management schemes will extend the useful life of the Southern Oahu aquifers, delaying use of costly desalination, and induce conservation through pricing mechanisms that account for marginal user cost. In addition, we will incorporate the impact of future climate change on the efficient allocation of water. Global warming will likely have a significant impact on rainfall frequency and intensity, which will in turn affect groundwater recharge. Under the current pricing structure, groundwater is already being over-consumed, and failing to account for climate change will exacerbate the extant under-pricing problem.

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