Water stress as a trigger of demand change: exploring the implications for drought planning

Drought in the Anthropocene is a function of both supply and demand. Despite its importance, demand is typically incorporated into planning models exogenously using a single scenario of demand change over time. Alternatively, demand is incorporated endogenously in hydro-economic models based on the assumption of rationality. However, actors are constrained by limited information and information processing capabilities, casting doubt on the rationality assumption. Though the risk of water shortage changes incrementally with demand growth and hydrologic change, significant shifts in management are punctuated and often linked to periods of stress. The observation of lasting decreases in per capita demands in a number of cities during periods of water stress prompts an alternate hypothesis: the occurrence of water stress increases the tendency of cities to promote and enforce efficient technologies and behaviors and the tendency of users to adopt them. We show the relevance of this hypothesis by building a model of a hypothetical surface water system to answer the following question: what is the impact of reservoir operation policy on the reliability of water supply for a growing city? The model links the rate of demand decreases to the past reliability to compare standard operating policy (SOP) with hedging policy (HP). Under SOP, demand is fulfilled unless available supply drops below demand; under HP, water releases are reduced in anticipation of a deficit to decrease the risk of a large shortfall. The model shows that reservoir storage acts both as a buffer for variability and as a delay triggering oscillations around a sustainable level of demand. HP reduces the threshold for action thereby decreasing the delay and the oscillation effect. As a result per capita demand decrease during periods of water stress are more frequent but less drastic and the additive effect of small adjustments decreases the tendency of the system to overshoot available supplies.