Watershed Conservation, Groundwater Management, and Adaptation to Climate Change

Sustainability science is transdisciplinary, organizing research to deliver meaningful and practical contributions to critical issues of resource management. As yet, however, sustainability science has not been integrated with the policy sciences. We provide a step towards integration by providing an integrated model of optimal groundwater management and investment in watershed conservation. The joint optimization problem is solved under alternative forecasts of the changing rainfall distribution for the Koolau Watershed in Oahu, Hawaii. Optimal groundwater management is solved using a simplified one-dimensional model of the groundwater aquifer for analytical tractability. For a constant aquifer recharge, the model solves for the optimal trajectories of water extraction up to the desalination steady state and an incentive compatible pricing scheme. The Koolau Watershed is currently being degraded, however, by invasive plants such as Miconia calvescens and feral animals, especially wild pigs. Runoff and erosion have increased and groundwater recharge is at risk. The Koolau Partnership, a coalition of private owners, the State Department of Land and Natural Resources have proposed a $5 million (present value) conservation plan that promises to halt further losses of recharge. We compare this to the enhanced present value of the aquifer, showing the benefits are an order of magnitude greater than the costs. If conservation is done in the absence of efficient groundwater management, however, more than 40% of the potential benefits would be wasted by under-pricing and overconsumption. We require an estimate of the rainfall-generating distribution and how that distribution is changing over time. We obtain these from statistical downsizing of IPCC climate models. Despite the finding that global warming will increase precipitation for most of the world, the opposite is forecast for Hawaii. A University of Hawaii study finds that the most likely precipitation scenario is a 5-10% reduction in wet season mean precipitation and a 5% increase during the dry season by the end of the 21st century. These trends will be used to condition the time series analysis through Bayesian updating. The resulting distributions, conditioned for seasonality and long-run climate change, will be used to recursively simulate daily rainfalls, thereby allowing for serial correlation and forming a basis for the watershed model to recursively determine components of the water balance equation. The methodology will allow us to generate different sequences of rainfall from the estimated distribution and the corresponding recharge functions. These in turn are used as the basis of optimizing groundwater management under both the watershed conservation program and no conservation. We calculate how much adaptation via joint optimization of watershed conservation and groundwater management decreases the damages from declining precipitation. Inasmuch as groundwater scarcity increases with the forecasted climate change, even under optimal groundwater management, the value of watershed conservation also increases.