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Economic Analysis Models & Tools

  • DWR Weather Normalization Modeling Tool
  • The DWR Weather Normalization Modeling Tool is a regression modeling framework developed in EXCEL© that uses trend, population, seasonality, and weather data linked to individual urban water agencies as explanatory variables. The tool also has the ability to use EDD unemployment rate data as an economic variable to adjust water use based on increased economic activity. This tool was developed by DWR staff for use by urban water agency managers as an optional method for assessing their compliance with SB7x-7 water use criteria. In order to facilitate exploratory modeling work, the tool also allows the creation and use of pre-specified regression models.

  • Flood Rapid Appraisal (F-RAM) Model
  • The F-RAM model is a method for the rapid and consistent evaluation of floodplain management measures in a benefit-cost analysis framework. It was developed by URS Corporation to assess the benefits (reduction in flood damages) of DWR’s levee repair program and prioritize its future repair program.

  • The GDR-NETFLOW is a network flow model developed using a linear programming framework. It was designed to evaluate the relative economic value of alternative drainage management options to identify the most economically efficient combination of options and facilitate “what if” analyses. It was developed to evaluate drainage management options for the Grasslands Drainage Reuse Project. The options evaluated included drainage water reuse, sequential application to salt-tolerant crops and halophytes, drainage water treatment facilities, salt disposal, and land retirement.

  • Least Cost Planning Simulation (LCPSIM) Model
  • LCPSIM is a yearly time-step simulation/optimization model developed to assess the economic benefits and costs of enhancing urban water service reliability at the regional level. In LCPSIM, regional water management operations are simulated on a yearly time-step, including the operation of surface and groundwater carryover storage capacity assumed to be available to the region. The model accounts for the ability of shortage management (contingency) measures, including water transfers, to reduce regional costs and losses associated with shortage events, and for the ability of long-term demand reduction and supply augmentation measures to reduce the frequency, magnitude, and duration of those shortage events. The LCPSIM output is the economically efficient level of adoption of reliability enhancement measures by type, level of implementation, and cost of those measures.

  • Life Cycle Benefit-Cost Analysis Tool
  • This is a Microsoft Excel based benefit cost analysis tool designed to be used in real applications of Benefit Cost Analysis (BCA). Users can construct a BCA by entering a series of benefits and costs into a Microsoft Excel spreadsheet template. Users can enter one-off benefits and costs, as well as benefits and costs occurring over multiple years. Users can also calculate a horizon value for their BCA. In addition, users can also calculate net benefits from time-savings, determine valuations for the environment, and calculate values for the net benefits associated with life savings and accident reduction. The tool produces results automatically.

  • Net Crop Revenue Model (NCRM)

    The NCRM are spreadsheet programs which estimate net crop revenues for important crops for recent years in 27 California counties and regions. The goal of the NCRM program is to develop and maintain up-to-date data covering all agricultural areas in the State.

  • Statewide Agricultural Production (SWAP) Model

    The SWAP model is a positive mathematical programming method for modeling agricultural production and water use. In California SWAP represents the most comprehensive agricultural economic modeling framework available and embodies over a decade of research, development, and applications in California. It was developed by researchers at the University of California, Davis under Professor Richard Howitt in collaboration with DWR with supplemental funding provided by the U.S. Dept. of Interior and Bureau of Reclamation.