Optimal allocation of bulk water supplies to competing use sectors based on economic criterion – An application to the Chao Phraya River Basin, Thailand

The study develops a model for optimal bulk allocations of limited available water based on an economic criterion to competing use sectors such as agriculture, domestic, industry and hydropower. The model comprises a reservoir operation module (ROM) and a water allocation module (WAM). ROM determines the amount of water available for allocation, which is used as an input to WAM with an objective function to maximize the net economic benefits of bulk allocations to different use sectors. The total net benefit functions for agriculture and hydropower sectors and the marginal net benefit from domestic and industrial sectors are established and are categorically taken as fixed in the present study. The developed model is applied to the Chao Phraya basin in Thailand. The case study results indicate that the WAM can improve net economic returns compared to the current water allocation practices.