4.1. Priority empirical findings to be incorporated into IAMs
The low-hanging fruit with reasonably high priority include the following
three categories of available information.
(a) Efficient water resource adaptation models for specific river basins.
The results of existing studies such as Hurd et al. (2004) for
particular river basins, assuming dynamically efficient adjustment
to new hydrological regimes in terms of water allocation,
could be incorporated into IAMs as “lower bound” estimates of
climate change's water-resource-related economic impacts in
these basins. In order for this step to be taken on a broad scale,
the development of similar models for additional global river
basins, with a focus on the largest and/or most highly populated
or over-allocated basins, would be necessary. However, the
process of integrating such results into IAMs could be piloted in
the short run using existing studies.
(b) Global models of adaptation through municipal water supply
infrastructure. The model in Hughes et al. (2010), with some
potentially straightforward changes in the econometric approach
and underlying assumptions, may be usefully incorporated into
IAMs. Linkage would need to be made to agricultural impacts in
some fashion, since additional water supply for urban and industrial
uses in Hughes et al. (2010) is taken from agriculture
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