An integrated approach to linking economic valuation and catchment modelling

An increased emphasis on integrated water management at a catchment scale has led to the development of numerous modelling tools. To support efficient decision making and to better target investment in management actions, such modelling tools need to link socioeconomic information with biophysical data. However, there is still limited experience in developing catchment models that consider environmental changes and economic values in a single framework. We describe a model development process where biophysical modelling is integrated with economic information on the non-market environmental costs and benefits of catchment management changes for a study of the George catchment in northeast Tasmania, Australia. An integrated assessment approach and Bayesian network modelling techniques were used to integrate knowledge about hydrological, ecological and economic systems. Rather than coupling existing information and models, synchronous data collection and model development ensured tailored information exchange between the different components. The approach is largely transferable to the development of integrated hydro-economic models in other river catchments. Our experiences highlight the challenges in synchronizing economic and scientific modelling. These include the selection of common attributes and definition of their levels suitable for the catchment modelling and economic valuation. The lessons from the model development process are useful for future studies that aim to integrate scientific and economic knowledge.

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