Source: UNIVERSITY OF ILLINOIS submitted to NRP
DEVELOPMENT OF AN INTEGRATED ECONOMIC-HYDROLOGIC-ECOLOGIC FRAMEWORK FOR RESILIENT SURFACE WATER-GROUNDWATER MANAGEMENT
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
Reporting Frequency
Annual
Accession No.
0229743
Grant No.
2012-67003-19981
Cumulative Award Amt.
$147,260.00
Proposal No.
2012-03307
Multistate No.
(N/A)
Project Start Date
Sep 1, 2012
Project End Date
Aug 31, 2014
Grant Year
2012
Program Code
[A3151]- Interagency Climate Change
Recipient Organization
UNIVERSITY OF ILLINOIS
2001 S. Lincoln Ave.
URBANA,IL 61801
Performing Department
Agricultural & Consumer Economics
Non Technical Summary
Many conflicts over transboundary allocations of water, endangered species, and instream habitat are driven by surface water-groundwater interaction. Despite this, even in basins where groundwater is the dominant water source, little is known about the variability across a watershed of groundwater use, as well as associated impacts on stream flow, instream and riparian habitat, crop yields, and irrigator profits. This proposal focuses on exploratory and planning activities to quantify the interaction between biological, physical, and socioeconomic components of the surface water-groundwater system in an integrated modeling framework that is correctly matched to the variety of human and natural processes operating across space and time. The innovation of our approach is that unlike other large-scale water system monitoring efforts, we will design and test a system for near-real-time monitoring of the population of human water-using activities as well as the environmental system. The overarching hypothesis of this project is that failure to capture watershed processes and their interactions at the correct scales will lead to gaps in scientific understanding and inappropriate management policies. The ultimate goal of this project is to develop a framework for integrated hydrologic-economic-ecologic measurement and analysis of surface water-groundwater interaction. Project objectives are (1) to design and test a pilot monitoring network to quantify near-real-time groundwater use and its physical and biological effects on stream flow and habitat over space and time; and (2) to design and implement a pilot groundwater market to improve both agricultural productivity and environmental resilience. The study site for the research is the Republican River Basin in Nebraska. Our research team includes economists, hydrologists, ecologists, and water managers from academic institutions, the federal government, local water management agencies, and non-governmental agencies. Research activities include two workshops to identify key constraints to monitoring and management of physical, biological and socioeconomic processes in surface water-groundwater systems; hydrologic and economic field experiments; numerical modeling and analysis; graduate student internships; and informal educational activities. This research will provide advances in the understanding of surface water-groundwater systems and models that integrate feedbacks between hydrologic, economic, and ecologic processes. Successful completion of the project objectives will provide the scientific groundwork and socio-economic context for implementation of a larger-scale surface water-groundwater monitoring and management system that is resilient to climate change. Additionally, the project contains several integrated research and education activities with the research, including interdisciplinary workshops and interdisciplinary research and internship experiences for graduate students. Finally, the project is expected to provide direct benefits to farmers participating in the pilot groundwater market.
Animal Health Component
15%
Research Effort Categories
Basic
70%
Applied
15%
Developmental
15%
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
6050210301050%
1110210205030%
1350812107020%
Goals / Objectives
The ultimate goal of this project is to develop a framework for integrated hydrologic-economic-ecologic measurement and analysis of surface water-groundwater interaction. A key requirement for the framework is to design a monitoring system at an appropriate spatial and temporal resolution that is able to (i) capture key physical, biological, and socio-economic processes; and (ii) enable robust governance systems to be established. In order to lay the groundwork for achievement of the goal, this project has the following objectives: 1) Design and test a trial monitoring network to quantify near-real-time groundwater use and its physical and biological effects on stream flow and stream habitat over space and time. 2) Design and implement trial incentive-based groundwater management policies that cost-effectively improve both agricultural productivity and environmental resilience and are robust to climate change. In addition, we will hold two workshops during 2012-2014. The workshops (to be held in Nebraska and California) will bring together approximately a dozen researchers and graduate students with expertise in understanding surface water-groundwater interaction as well as groundwater managers. The goals of the first workshop will be (i) to learn about the breadth and complexity of processes involved in surface water-groundwater interaction; (ii) to develop a general conceptual framework for the systematic collection of empirical data (physical, biological, and socioeconomic) needed to quantify the processes relevant to surface water-groundwater interaction; and (iii) to refine the criteria to site pilot study activities. The goals of the second workshop will be (i) to synthesize pilot study results and to discuss their broader applicability beyond the study site; and (ii) to adapt the conceptual framework developed in the first workshop in light of pilot study findings; and (iii) to plan for further implementation and funding of the monitoring and governance systems developed. The study site for the research is the Republican River Basin in Nebraska, an area of active transboundary conflict over surface water-groundwater interaction. The activities in this project will help to reduce the transaction costs of water reallocation for farmers and demonstrate ways in which farmers can use water more cost-effectively to increase agricultural productivity while maintaining or improving instream flows. This represents a transferable template for reducing and managing surface water-groundwater conflict elsewhere. Pilot study outputs will demonstrate the viability of using extensive near-real-time monitoring networks for groundwater management not just in the study area, but in other regions with complex surface water-groundwater systems. The project involves two graduate students in interdisciplinary agricultural sciences research, as well as promoting learning and interaction with farmers and water managers in the Upper Republican Natural Resource District of Nebraska.
Project Methods
The project incorporates workshops, field-based experimental methods in the Republican River Basin, numerical modeling, and student internships. Below, we discuss components in turn. WORKSHOPS: We will hold two workshops during 2012-2014 to develop and implement the conceptual framework and to synthesize pilot study results. Both workshops will bring together approximately a dozen researchers and graduate students with expertise in understanding surface water-groundwater interaction as well as groundwater managers. PILOT NEAR-REAL-TIME MONITORING NETWORK: We propose to establish a pilot real-time monitoring network for a cluster of privately-owned wells using commercially available technology in the Republican River Basin study site. In the study site, flow meters are already in place at every well, and we will work with the Upper Republican NRD (URNRD) to facilitate placement of data loggers on private wells. The exact choice of sites will depend on farmer recruitment as well as the research design, but is anticipated to include multiple owners and to be restricted to center pivot technology, which is the modal technology in use. We will use the baseline geospatial data we already have to target potential pilot study sites based on estimated economic productivity, the severity of current constraints, proximity to streams, USGS stream gages, USGS monitoring wells, and local geophysical conditions. Given the budget limitations of the pilot study, we propose to establish five monitoring sites with data loggers at wells and collect data using a commercial cell-phone based system sampling at 15 minute intervals (the same sampling resolution as several USGS monitoring well and stream gages in the area). PILOT GROUNDWATER TRADABLE PERMIT SYSTEM: We propose to set up a pilot tradable permit scheme for groundwater rights in the study area. For the 2013 growing season, we will design and test 3 or 4 different trading rules that allow trading of limited pumping rights. Each rule will be implemented either in a different part of the basin, or randomly, depending on discussions between the research team and water managers before and during the first workshop. At the end of the growing season, we will be able to see what trades occurred under each of the rules, how these trades conform to theoretical predictions of profitable trades, and how trades have altered the patterns of water use and stream flow in the study area. NATIONAL MARINE FISHERIES SERVICE INTERNSHIPS: In the Summer of 2013, the two graduate students involved in the project will undertake internships with economists responsible for the salmon fisheries in California and Oregon at the National Marine Fisheries Service in Santa Cruz, California. This will allow them to see first-hand the work of a federal agency for whom surface water-groundwater interaction is critical, but with quite different regulatory infrastructure, habitat issues, and local management institutions than in the Republican River Basin study area.

Progress 09/01/12 to 08/31/14

Outputs
Target Audience: Audiences reached by efforts in the current reporting period were (i) agricultural producers that irrigate with groundwater in the High Plains region of Nebraska; (ii) managers and technical staff of natural resources districts in Nebraska; and (iii) faculty, postdoctoral researchers, and graduate students at research universities. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Graduate students have been trained in theoretical, numerical, and econometric methods of economic analysis applied to water resource management issues. Early-career researchers have been mentored to understand better how economic tools and analytical results may be translated into results useful to broader audiences. Research team members have been provided professional development opportunities to learn about current water management issues from producers and water managers, and to present research results to a wide range of audiences, both technical and non-technical. How have the results been disseminated to communities of interest? Results have been disseminated through several means. We have conducted workshops with water managers and agricultural producers in Nebraska. We have also presented our results at groundwater management district board and technical committee meetings, and have met with individual producers and managers. We have presented our results at research conferences and at invited seminars at universities. We have written up results for peer review and publication. Finally, we have also written non-technical summaries for dissemination to non-academic communities. What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

Impacts
What was accomplished under these goals? Major activities included workshops and one-on-one meetings with water managers and agricultural producers in Nebraska. The goals were to understand key stakeholder concerns, determinants of groundwater-fed irrigation behavior, local variations in water regulations, and how these could be incorporated in an integrated hydrologic-economic-ecologic framework. Data on groundwater use and regulatory structure were collected. The project team held the first team workshop on March 13-15, 2013 in Imperial, Nebraska. The team discussed data availability, scales, and structures for integrated modeling, met with staff at the Upper Republican Natural Resources District, and toured the area to understand better key issues in how current policies to manage stream depletion were impacting irrigation management. Several research products based on the data collected were developed. Economic modeling of existing and potential groundwater management systems show that alternate policies can have very different impacts both on resource condition and on farm-level profitability (Brozovic and Young, 2014; Palazzo and Brozovic, 2014; Young, 2014). In particular, our analysis suggested that transferable permit systems, when designed to address instream flow and other local concerns, may be less costly than alternate policies to producers for any given level of desired streamflow. The team also undertook econometric analysis of past participation in informal groundwater transfers in the Upper Republican Natural Resources District (Juchems et al., 2013; Juchems, 2013). This analysis suggested that in general, trading patterns did follow those predicted based on comparing the expected profitability of land between potential trading partners. A separate study developed a coupled hydrologic-economic model of water reallocation with imperfect monitoring of water use, and analyzing how physical and institutional settings determine tradeoffs between increased streamflow benefits and reduced farm profits (Young, 2014). Finally, research on intraseasonal water use decisions by producers that irrigate was based on meetings with water managers and producers in the study area. The results of this research highlighted the importance of well yield in determining producer risk from drought and resulting intensive and extensive margin cropping and water use decisions (Foster et al., 2014). We have been working with several Natural Resources Districts in Nebraska to try to implement functional streamlined transferable permit systems that reduce the transaction costs of reallocating water between producers while meeting regulatory requirements (Brozovic and Young, 2014). If successful, such systems would provide quantified monetary benefits to producers as well as reduced impacts on adjacent stream flow. In summer 2013, two graduate students undertook internships at the Southwest Fisheries Science Center in Santa Cruz. The focus of the internships was understanding biophysical-economic linkages in surface water-groundwater systems, and in particular how agricultural production can impact instream habitat for fish species. During the internships, the students collaborated with NOAA biologists and economists and participated in field work in northern California.

Publications

  • Type: Theses/Dissertations Status: Published Year Published: 2014 Citation: Tradable Permit Systems for a Spatially Heterogeneous Externality: A Microparameter Approach, 2014, Richael Young, MS thesis, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign.
  • Type: Journal Articles Status: Published Year Published: 2014 Citation: Foster, T., Brozovic, N., and Butler, A.P., 2014, Modeling irrigation behavior in groundwater systems, Water Resources Research, DOI: 10.1002/2014WR015620.


Progress 09/01/12 to 08/31/13

Outputs
Target Audience: Audiences reached by efforts in the current reporting period were (i) agricultural producers that irrigate with groundwater in the High Plains region of Nebraska; (ii) managers and technical staff of natural resources districts in Nebraska; and (iii) faculty, postdoctoral researchers, and graduate students at research universities. Changes/Problems: Our original plan was to work with producers in the Upper Republican NRD to develop atrial monitoring network to quantify near-real-time groundwater use over space and time for the 2013 irrigation season. The network will use commercially available monitoring equipment. However, we have had difficulties in obtaining an equipment and monitoring contract from local suppliers in the field area. The main reason for this is that the size of the contract that we are proposing for our pilot study is much less than a normal commercial contract, while the paperwork involved is more. However, we are continuing to work on this portion of the research project and are hopeful that we will be able to collect some monitoring data for the 2014 irrigation season. What opportunities for training and professional development has the project provided? Graduate students have been trained in theoretical, numerical, and econometric methods of economic analysis applied to water resource management issues. Early-career researchers have been mentored to understand better how economic tools and anaytical results may be translated into results useful to broader audiences. Research team members have been provided professional development opportunities to learn about current water management issues from producers and water managers, and to present research results to a wide range of audiences, both technical and non-technical. How have the results been disseminated to communities of interest? Results have been disseminated through several means. We have conducted workshops with water managers and agricultural producers in Nebraska. We have also presented our results at groundwater management district board and technical committee meetings, and have met with individual producers and managers.We have presented our results at research conferences and at invited seminars at universities. We have written up results for peer review and publication. Finally, we have also written non-technical summaries for dissemination to non-academic communities. What do you plan to do during the next reporting period to accomplish the goals? In the next reporting period, we will continue to work with Natural Resources Districts to try to implement our pilot transferable groundwater permit system. We will hold the second planned workshop. We will work with producers in the Upper Republican Natural Resources District to try to deploy real-time water use monitoring and evaluate the data produced. We will continue to work on products for research and broader audiences, and we will provide further professional development opportunities for students involved in the project.

Impacts
What was accomplished under these goals? Major activities included workshops and one-on-one meetings with water managers and agricultural producers in Nebraska.The goals were to understand key stakeholder concerns, determinants of groundwater-fed irrigation behavior, local variations in water regulations, and how these could be incorporated in anintegrated hydrologic-economic-ecologic framework.Data on groundwater use and regulatory structure were collected. The project team held the first team workshop on March 13-15, 2013 in Imperial, Nebraska. The team discussed data availability, scales, and structures for integrated modeling, met with staff at the Upper Republican Natural Resources District, and toured the area to understand better key issues in how current policies to manage stream depletion were impacting irrigation management. Several research products based on the data collected were developed. Economic modeling of existing and potential groundwater management systems show that alternate policies can have very different impacts both on resource condition and on farm-level profitability (Brozovic and Young, in press; Palazzo and Brozovic, 2014). In particular, our analysis suggested that transferable permit systems, when designed to address instream flow and other local concerns, may be less costly than alternate policies to producers for any given level of desired streamflow. The team also undertook econometric analysis of past participation in informal groundwater transfers in the Upper Republican Natural Resources District (Juchems et al., 2013). This analysis suggested that in general, trading patterns did follow those predicted based on comparing the expected profitability of land between potential trading partners. A separate study is developing a coupled hydrologic-economic model of water reallocation with imperfect monitoring of water use, and analyzing how physical and institutional settings determine tradeoffs between increased streamflow benefits and reduced farm profits. We have been working with several Natural Resources Districts in Nebraska to try to implement functional streamlined transferable permit systems that reduce the transaction costs of reallocating water between producers while meeting regulatory requirements. If successful, such systems would provide quantified monetary benefits to producers as well as reduced impacts on adjacent stream flow. In summer 2013, two graduate students undertook internships at the Southwest Fisheries Science Center in Santa Cruz. The focus of the internships was understanding biophysical-economic linkages in surface water-groundwater systems, and in particular how agricultural production can impact instream habitat for fish species. During the internships, the students collaborated with NOAA biologists and economists and participated in field work in northern California.

Publications

  • Type: Book Chapters Status: Awaiting Publication Year Published: 2014 Citation: Brozovic, N. and Young, R. Design and Implementation of Markets for Groundwater Pumping Rights in Water Markets for the 21st Century: What Have We Learned? (eds. K. Easter and Q. Huang).
  • Type: Journal Articles Status: Accepted Year Published: 2014 Citation: Palazzo, A. and Brozovic, N. The role of groundwater trading in spatial water management. Agricultural Water Management.
  • Type: Conference Papers and Presentations Status: Other Year Published: 2013 Citation: Elizabeth M. Juchems, Karina Schoengold and Nicholas Brozovic. Predicting Groundwater Trading Participation in the Upper Republican Natural Resource District. AAEA Annual Meeting, Washington D.C. (August 2013).
  • Type: Theses/Dissertations Status: Published Year Published: 2013 Citation: Juchems, E. M. Predicting groundwater trading participation in the Upper Republican River Natural Resource District. Master's thesis, University of Nebraska-Lincoln.