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

Kahsay, Tewodros Negash; Arjoon, Diane; Kuik, Onno; Brouwer, Roy; Tilmant, Amaury; van der Zaag, P.

doi:10.1016/j.envsoft.2019.03.007

A hybrid partial and general equilibrium modeling approach to assess the hydro-economic impacts of large dams

Title

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

Author

Kahsay, Tewodros Negash (Vrije Universiteit Amsterdam; Addis Ababa University)
Arjoon, Diane (Université Laval)
Kuik, Onno (Vrije Universiteit Amsterdam)
Brouwer, Roy (University of Waterloo; Vrije Universiteit Amsterdam)
Tilmant, Amaury (Université Laval)
van der Zaag, P. (TU Delft Water Resources; IHE Delft Institute for Water Education)

Date

2019

Abstract

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.

Subject

Computable general equilibrium modeling
Eastern Nile countries
Grand Ethiopian Renaissance dam
Stochastic dual dynamic programming

To reference this document use:

http://resolver.tudelft.nl/uuid:39dbb6b8-433d-42e9-8f69-22e1ef4ac821

DOI

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

Embargo date

2021-03-28

ISSN

1364-8152

Source

Environmental Modelling & Software, 117, 76-88