Risk assessment of water allocation on water scarcity period: the case of Jaguaribe-Metropolitan System

ABSTRACT The article evaluates the transfer of risk of a water allocation policy between two user sectors: urban supply and irrigation. The allocation between uses was performed using two methods: linear apportionment and assessment with priorities (adopted in periods of water scarcity). The amount available for allocation was obtained using two reservoir operation strategies: zero inflow in the second half of the year and forecast flow. Gains and losses of the user sectors were determined through benefits functions. The two allocation scenarios pointed to lower guarantees and benefits for user sector with less priority. The priority system revealed that the water transfer infrastructures provide gains for the higher priority sector when guaranteeing water security; however, cause losses when extinguishes the right to use the demand of lower priority, indicating that the allocation of water is also a distribution process risk. The transfer risk of this sector, volumetric and monetary, can be minimized with the use of climate information. Thus, an alternative to the allocation of water in environments with water transfer systems would be an acceptable risk in order to increase the current level of benefits of irrigation and the satisfaction of the urban supply. This risk can be established based on seasonal climate prediction models.