https://doi.org/10.1016/j.envsoft.2019.03.007

Kahsay, T. N., Arjoon, D., Kuik, O., Brouwer, R., Tilmant, A., & van der Zaag, P. (2019). A hybrid partial and general equilibrium modeling approach to assess the hydro-economic impacts of large dams-The case of the Grand Ethiopian Renaissance Dam in the Eastern Nile River basin. Environmental Modelling & Software, 117, 76-88. https://doi.org/10.1016/j.envsoft.2019.03.007

A novel integrated hydro-economic modeling framework that links a bottom-up partial equilibrium (engineering) model with a top-down (economic) general equilibrium model is developed for assessing the regional economic impacts of water resources management and infrastructure development decisions in a transboundary river basin. The engineering model is employed first to solve the water allocation problem for a river system in a partial equilibrium setting. The resulting system-wide changes in optimal water allocation are subsequently fed into the general equilibrium model to provide an economy-wide perspective. This integrated hydro-economic modeling framework is illustrated using the Eastern Nile River basin as a case study. The engineering-based stochastic dual dynamic programming (SDDP) model of the Eastern Nile basin is coupled with the computable general equilibrium (CGE) model GTAP-W to assess the economy-wide impacts of the Grand Ethiopian Renaissance Dam (GERD) on the Eastern Nile economies.

https://doi.org/10.1016/j.envsoft.2019.03.007