Agent-Based Model Development and Touchet Watershed Data Usage

This research highlight summarizes two studies using an agent-based model (ABM) and Touchet River Basin water rights data to evaluate economic and environmental tradeoffs in water markets and streamflow augmentation. The first study examines the consequences of allowing upstream water rights transfers under different measurement scenarios, including accurate consumptive use, mismeasured consumptive use, and diversion-based trading. Results show that gains from trade are higher when upstream trade is allowed, particularly when consumptive use is accurately measured. However, mismeasurement can generate negative externalities that reduce net social benefits. The second study evaluates water rights leasing for streamflow augmentation under varying drought conditions. Simulations show that prohibiting downstream diversion of augmented flows reduces costs to a water trust and maintains higher ecological benefits. Together, the studies highlight how regulatory frameworks, measurement accuracy, and drought severity influence economic efficiency and environmental outcomes in western water markets.

This work was supported by the USDA National Institute of Food and Agriculture, project #1016467.