Economically Driven Simulation of Regional Water Systems: Friant-Kern, California

This paper develops and applies an economically driven simulation model for Californiaʹs Friant-Kern system, a region characterized by diverse water sources employed predominantly for commercial irrigated agriculture, with significant local water trading activity. The economic-engineering simulation approach highlights the importance of representing user economic decisions for water systems in a context of complex physical and infrastructure systems dominated by economic water uses. The model simulates how water users conserve, select supplies and make water exchange and market decisions in response to water costs and availability, and provides estimates of economic and operational impacts of alternative policies for the Friant-Kern system. Results show that high surface water prices cause farmers to pump more groundwater, disturbing an existing conjunctive use system and aggravating regional groundwater overdraft.