A real-time market-based framework for basin-wide surface water pricing and allocation considering the available water uncertainty

Market-based approaches are increasingly considered reallocating instruments that put water consumption at its highest economic value among competing water users. Setting up a water market can have a lot of environmental, social, economic, and legal complexities. One of the main issues is the uncertain nature of the available water, which can cause the failure of markets, especially during drought conditions. Therefore, there is a need for market mechanisms to consider and reduce the adverse impacts of available water uncertainty on market outcomes. Accordingly, this paper proposes a new real-time seasonal smart water market framework for basin-wide surface water pricing and allocation. The framework uses the results of the reservoir water allocation optimization models and ANFIS-based monthly river discharge forecasts to better assist the water users with their bidding. The market manager uses updated available information at the beginning of each season to provide users with a more accurate understanding of available water to adjust their tradings for the rest of the year. The applicability and efficiency of the proposed framework are evaluated by applying it to the Gorganrood River basin in Iran. According to the results, the framework increased users' benefits from 721 to 1050 billion rials, which is more efficient than an annual market. Water markets can use this framework to improve their ability to cope with the uncertainty of available water, increase their users' benefits, and encourage them to improve their efficiency. Furthermore, the proposed framework allows the decision-makers in water sectors (e.g., industrial, agricultural, etc.) to discover time and location specific water allocation and price for different water users.

Combining urban metabolism and reinforcement learning concepts for sustainable water resources management: A nexus approach

Modeling Water-Energy-Food (WEF) nexus is necessary for integrated water resources management (IWRM), especially in urban areas. This paper presents a new urban water metabolism-based methodology for WEF nexus modeling and management. A behavioral simulation model is used to incorporate the characteristics of stakeholders in an urban area. Modified versions of the Borda count, Copeland rule, and fallback bargaining procedures are implemented to choose the socially acceptable management scenarios. Finally, the selected scenarios' effectiveness is evaluated using the fairness and total utility indices. The applicability of the proposed methodology is evaluated by applying it to the Kan River basin, Tehran, Iran, which is suffering from some water and environmental issues. The considered management scenarios include adding new water sources, leakage control plans, using rubber dams for enhancing groundwater recharge, revising water allocation priorities, and developing semi-centralized or decentralized reuse strategies for reclaimed wastewater. Results illustrate that considering different fluxes (i.e., water quantity, pollutants, energy, greenhouse gases (GHG), and materials) is as important as incorporating the social characteristics of stakeholders. Simulating the socially acceptable scenario shows that the aquifer's average water level improves by 3 (m), and its average nitrate concentration reduces by 16 (mg/L) in comparison with the business as usual (BAU) scenario. In addition, by implementing different water reuse strategies, which are energy-intensive, total energy consumption is reduced by 5% due to less groundwater pumping. Also, the selected scenario decreases GHG emissions by 18% and increases the sequestrated carbon dioxide by 20%. In conclusion, the proposed decision support tool can provide policies for sustainable water resources management considering water quality and quantity issues, energy usage, and GHG emission.