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Rational water resource management is used to ensure a stable supply of water by predicting the supply of and demand for future water resources. However, rational water allocation will become more difficult in the future owing to the effects of climate change, causing water shortages and disputes. In this study, an advanced hydro-economic water allocation and management model (WAMM) was introduced by improving the optimization scheme employed in conventional models and incorporating the economic value of water. By relying upon economic valuation, the WAMM can support water allocation efforts that focus not only on the stability but also on the economic benefits of water supply. The water supply risk was evaluated following the different objective functions and optimization methods provided by the WAMM using a case study of the Namhan River basin in South Korea under a climate change scenario over the next 30 years. The water shortages and associated economic damage were compared, and the superior ability of WAMM to mitigate future water shortages using economic valuation and full-step linear programming (FSLP) optimization was demonstrated. It is expected that the WAMM can be applied to help resolve water shortages and disputes among river basin units under severe drought conditions.

Hydro-Economic Water Allocation Model for Water Supply Risk Analysis: A Case Study of Namhan River Basin, South Korea