Integrating Environmental Impacts into Water Allocation Models of the Mekong River Basin

Rapid agricultural development in the Mekong River Basin has led to increased competition for water resources for extractive uses (including irrigation and domestic-industrial water uses) and in-stream uses (including hydropower, wetlands and fish production). While institutions for cooperation in managing water resources amongst riparian countries were established in the 1995 Mekong Agreement, no institutions have been developed for allocating water resources amongst stakeholders. Ringler (2001) conducted an analysis of water allocation and use in the Basin by developing an economic-hydrological model, where water supply and demand are optimised using the economic objective of maximising the net benefits of water use. A limitation of the Ringler Model is that it does not fully capture the environmental impacts of alternative water allocations. The aim of this project is to develop a strategy for including environmental benefits and costs of alternative water allocation scenarios in the Ringler Model. This will be done by first, reviewing the environmental impacts of alternative water uses in the Mekong River Basin, second, recommending how these environmental impacts might be valued, and third, determining how the estimates of environmental impacts can be incorporated in the Ringler model. In performing these tasks, potential research collaborators will be identified and their capacities assessed, ideas will be 'work-shopped' and a full research plan that would see the strategy implemented will be formulated.

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