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Global climate change is likely to alter the spatial and temporal distribution of water resources. Changes in the timing and magnitude of runoff as a result of climate change will have enormous social and economic impacts on societies around the world. Regional water resource managers need to assess potential consequences and to establish adaptive water resource management strategies. In this essay, we first overview the interactions among economics, water resources, and climate change. Second, we provide a brief history of modeling in water resource management and how it has been integrated with economic models, as well as outline general considerations in the development of an integrated assessment model. We then review available economic impact assessment models under climate change. By comparing exemplary cases studies of these models, we identified a suitable model for comprehensive and spatially-oriented impact assessment. The spatial equilibrium model that takes into account various socioeconomic sectors within the basin provides a reasonable means for unraveling the coupled natural and human systems under climate uncertainty.


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climate change, water resources, economic impact, impact assessment, spatial equilibrium model, river basin