New developments in hydro-economic models (HEMs) for policy analysis: Key takeaways from the UCT-UCR seminar
Picture: G.C. Apar
The UCT-UCR Water Economics and Politics Seminar Series hosted Distinguished Achievement Professor Frank A. Ward from New Mexico State University on 4 June 2025. He presented on new developments in hydro-economic models (HEMs) for policy analysis. Prof. Ward explored how HEMs can help policymakers address water resource challenges intensified by climate change.
Prof. Ward emphasised that climate change poses significant risks to water availability, particularly in regions already experiencing scarcity. Through HEMs, policymakers can assess the economic implications of water management strategies, enabling more informed decision-making. He highlighted the importance of integrating economic, environmental and societal factors into these models to ensure sustainable water allocation.
The discussion also focused on real-world applications of HEMs, including their role in balancing competing water demands across sectors like agriculture, urban use and environmental conservation. Prof. Ward underscored that while these models are powerful tools, successful implementation requires collaboration across disciplines and transparent engagement with stakeholders.
Key takeaways from the seminar:
- Policy guidance through HEMs: Hydro-economic models provide a critical framework for analysing how climate change impacts water policies, helping align resource allocation with sustainability goals.
- Balancing competing demands: Effective water management strategies must address the needs of agriculture, urban areas and ecosystems, considering both economic and environmental factors.
- Stakeholder collaboration: The success of HEMs depends on interdisciplinary efforts and stakeholder involvement to ensure practical and inclusive policy outcomes.
This seminar provided valuable insights into the evolving role of hydro-economic models in addressing water resource challenges in a changing climate. For more detailed information, take a look at the presenter’s recent review, Hydroeconomic analysis: History, status, and possibilities (Frank Ward in Water Economics and Policy, 2024).