Integrated Hydro-Economic Modelling: Challenges and Experiences in an Australian Catchment
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Integrated catchment policies are widely used to manage natural resources in Australian catchments. Integration of environmental processes with socio-economic systems is often difficult due to the limitations of decision support tools. To support assessments of the environmental and economic trade-offs of changes in catchment management, fully integrated models are needed.
This research demonstrates a Bayesian Network (BN) approach to integrating environmental modelling with economic valuation. The model incorporates hydrological, ecological and economic models for the George catchment in Tasmania. Choice experiments were used to elicit information about the non-market costs and benefits of environmental changes. This allows the efficiency of alternative management scenarios to be assessed.