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

Tewodros Negash Kahsay, Diane Arjoon, Onno Kuik, Roy Brouwer, Amaury Tilmant, Pieter van der Zaag

Research output: Contribution to JournalArticleAcademicpeer-review

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.

LanguageEnglish
Pages76-88
Number of pages13
JournalEnvironmental Modelling and Software
Volume117
DOIs
Publication statusPublished - 1 Jul 2019

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economic impact
Catchments
Dams
river basin
dam
Rivers
Economics
modeling
engineering
economics
computable general equilibrium analysis
river system
Water resources
Dynamic programming
infrastructure
Water
water
basin
economy
allocation

Keywords

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

Cite this

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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",
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.",
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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, Pieter.

In: Environmental Modelling and Software, Vol. 117, 01.07.2019, p. 76-88.

Research output: Contribution to JournalArticleAcademicpeer-review

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