Decision-making and integrated assessment models of the water-energy-food nexus
2020
Rising, James
Studying trade-offs in the long-term development of water-energy-food systems requires a new family of hydroeconomic optimization models. This article reviews the central considerations behind these models, highlighting the importance of water infrastructure, the foundations of a theory of decision-making, and the handling of uncertainty. Integrated assessment models (IAMs), used in climate change policy research, provide insights that can support this development. In particular, IAM approaches to intertemporal decision-making and economic valuation can improve existing models. At the same time, IAMs have weaknesses identified elsewhere and can benefit from the development of hydroeconomic models, which have complementary strengths.
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