Economic optimization to guide climate water stress adaptation

Allocation of water over its six dimensions of quantity, quality, timing, location, price, and cost remains an ongoing challenge facing water resource planning worldwide. This challenge is magnified with growing evidence of climate change and related water supply stressors. This stress will challenge food, energy, and water systems as climate adaptation policy measures see continued debate. Despite numerous achievements made many by previous works, few attempts have scanned the literature on economic optimization analysis for water resources planning to discover affordable climate adaptation measures. This paper aims to fill that gap by reviewing the literature on water resource optimization analysis at the basin scale to guide discovery of affordable climate adaptation measures. It does so by posing the question “What principles, practices, and recent developments are available to guide discovery of policy measures to improve water resource system adaptions to growing evidence of climate water stress?” It describes past achievements and identifies improvements needed for optimization analysis to inform policy debates for crafting plans to improve climate resilience. It describes an economic conceptual framework as well as identifying data needs for conducting economic optimization exercises to support river basin planning faced by the challenge of managing the six water dimensions described above. It presents an example from an ongoing issue facing water planners in the Middle East. Conclusions find considerable utility in the use of economic optimization exercises to guide climate water stressadaptation. Any use of trade, firm, or product names is for descriptive purposes only and does not imply endorsement by the U.S. Government. •The motivation, application, and use of optimization models to guide climate water stress adaptation are reviewed.•This work describes the conceptual framework and data needs for building economic optimization models.•These models are found to support river basin planning and management.•An example is drawn from one important policy debate facing water planners in Iraq.