Working Papers Header

Colorado Working Papers

Here you can find the list of our working papers:

  • Crespo, D., Nemati, M., Dinar, A., Frankel, Z., & Halberg, N. 2023. Hydro-Economic Analysis of the Colorado River Basin: A Comprehensive Framework for Water Management. UCR SPP Working Paper Series, September 2023 – WP#23-02, University of California, Riverside.

    Water management concerns in the Colorado River Basin (CRB) require an integrated approach considering the interplay of physical, hydrological, and economic components affecting its performance. This paper presents a hydro-economic model of the basin that captures the spatial and temporal dynamics of the water system and incorporates basin decision-makers at various levels. The model encompasses agricultural production, urban water use, hydropower production, and environmental water use. The hydro-economic model reveals that agriculture consumes a significant amount of water in the basin, with 2.6 million acres of irrigated land across 40 irrigation districts in seven states. The agricultural sector diverts 8.9 million acre-feet of water, generating $1,773 million in net income. Furthermore, the hydro-economic model incorporates urban centers within and outside the basin that rely on the Colorado River for water supply. The model includes 379 cities with 33.4 million inhabitants, with an estimated 1.3 million acre-feet of water for domestic and non-domestic purposes. The economic benefits generated by urban water use totals $18,328 million. Irrigated cropland and urban water use of Tribal Nations are accounted for in the states where they are located. Mexico and environmental water use are included with a restriction of minimum water flow. In addition, the model includes the hydropower production capacity of the basin, which represents 95% of the installed capacity. The nine largest hydropower plants produce 10,225 gigawatt-hours annually, generating substantial economic benefits of $874 million. Notably, hydropower production reduces greenhouse gas emissions, with approximately 12,300 million pounds of carbon dioxide-equivalent emissions avoided. Finally, the hydro-economic model serves as a tool for evaluating potential policy changes in the CRB. By analyzing different policy interventions under various climate scenarios, decision-makers can gain insights into the likely economic effects of such changes. This information can aid in optimizing and contributing to sustainable decision-making in the CRB.