This work develops and applies a new agricultural and urban dynamic adaptation model (ADAM) targeted at addressing the problem of sustainable water management to reduce the cost of climate adaptation. ADAM is a multisector dynamic optimization model illustrated with a small-scale two-sector example applied to North America’s Rio Grande Basin (Fig. 1). The development of ADAM permits the discovery of the economic performance of several water shortage adaptation methods and various future potential costs of imported desalinated seawater. ADAM was developed and applied with several elements, as described below.
8.1 Study Area
The Rio Grande (RG) headwaters lie in the western part of the Rio Grande National Forest in southern Colorado (Fig. 1). It flows through the San Luis Valley, Colorado, then turns south into New Mexico, passing through the deep Rio Grande Gorge, continuing south toward Española, at which point it secures additional supplies from the Rio Chama. This work develops and applies the ADAM model targeted at addressing the problem of sustainable water management to reduce the cost of climate adaptation.
8.2 Recent Policy Enactments
A 2024 news announcement 46 reported that the U.S. federal government plans to spend $60 million in climate water stress drought adaptive capacity development in the Rio Grande Basin according to U.S. Interior Secretary Haaland’s statement on May 10, 2024. This funding will help increase the storage of existing dams as well as provide new off-channel storage for stormwater capture, aquifer recharge, irrigation water conservation, and programs to promote farmland fallowing, as well as protecting key ecological assets. Based on the recent 50-Year Water Plan, 47 by late 2074, the state of New Mexico can expect to have one-quarter less surface water available from regional sources for use than in earlier years. This plan recognizes that the region is facing reduced surface water supplies as well as higher cost aquifer pumping levels.
8.3 Seawater Desalination Costs
The three prices (costs) of desalinated water used to drive the ADAM model are low, medium, and high, as described in the text. The high (current) price of desalinated water was set for use by Albuquerque at $2405 per acre foot and $3371 for Las Cruces. The desalting prices included the cost of seawater desalination itself, the cost of building a pipeline from San Diego, California, to the New Mexico high desert, and the cost of pumping water uphill from sea level to the New Mexico desert, for which water is heavy at about 62.4 pounds per cubic foot.
The current cost of seawater desalination was taken to be $0.75 per cubic meter (one acre foot = 1233.5 cubic meters) for supplying the water, 48 equal to $924 per acre foot for each city. The 2024 pipeline water transport cost was estimated at approximately $2.75 million per mile from San Diego to Albuquerque and $1.50 million per mile for a smaller diameter pipeline from San Diego to Las Cruces, 49 for which each pipeline’s life was taken to be 50 years. Neither pipeline has been built yet, so these cost estimates remain uncertain.
Annual water use was set at the 2021 level of about 132,000 acre feet for Albuquerque and 22,000 acre feet for Las Cruces, for which the 750-mile distance to Albuquerque produced a horizontal delivery cost of $799 per acre foot and for which the 700-mile distance to Las Cruces produced an equivalent cost of $2799 cost per acre foot. Uphill water transport produces a $679 cost per acre foot to Albuquerque at 4957 foot elevation and $535 per acre foot for the vertical lift of 3907 feet to Las Cruces, assuming 75% pumping plant efficiency and a price of electricity of $0.10 per kwh. 50
From these calculations, the total cost per acre foot of seawater desalinated cost delivered to Albuquerque is $2405, for which the cost is $3371 for Las Cruces. These costs exceeded the current costs by $1173 per acre foot for Albuquerque and by $2774 per acre foot for Las Cruces. The medium imported desal prices were set to a cost of $50 per acre foot higher than the current cost for both Albuquerque and Las Cruces. The low price was set to a cost of $10 per acre foot higher than the current price for each city. Both medium and low prices are low according to the current standards of desalination costs and horizontal and vertical delivery costs. To be economically viable under current technology and energy costs, both of those scenarios would need to contain large subsidies to be economically viable.
8.4 Substitutions
The degree of substitutability between regional water supplies and imported desal water is important. If imported desal is easily substituted for regional sources, there is little concern about climate water stress worldwide, except for the price of imported water. A defensible theory of water user behavior and an acceptable theory of water policy need to account for both the technical uncertainty and the real cost of imported water. This paper assumes that imported water substitutes perfectly for regional sources; therefore, a major economic question turns on the price of imported water if it could be made affordable for use in this high desert region.
8.5 Seawater Desal: a Backstop Technology
ADAM models imported seawater desal water as a backstop technology, i.e., an expensive but perfect substitute for water supplied by regional sources, namely rivers and aquifers. That is, ADAM recognizes that at some finite cost of supply, urban use of desal water can be made independent of regional water sources altogether, taking much pressure off local surface and aquifer sources, a valued outcome for this high desert region as well as many others internationally. Similar ideas were developed in connection with depletable resources in earlier works51 as well as more recently52. With continued evidence of climate water stress internationally, there is growing interest in the discovery and development of nondepletable water sources for dealing with declining surface water and groundwater sources.
Although it will likely take many years before seawater desalination can be delivered affordably to this high desert region, this approach will inform investigations containing some powers of generalizability. Seawater desalination is a backstop technology53 for surface water or groundwater supply because it offers a reliable and climate water stress-resistant source of fresh water for several reasons:
Nearly Infinite Supplies: Oceans contain approximately 97% of Earth’s water. Seawater desal technology allows water planners to take advantage of this enormous resource, providing a nearly infinite supply of water for cities with economically accessible seawater, as observed in Israel53 and elsewhere in the Middle East.
Drought Resistance: Seawater desalination facilities can operate independently of the sun, wind, humidity, snow, or rain. This independence makes desal plants especially valuable in arid regions that are currently or potentially physically or economically close to the sea, making them less vulnerable to drought or climate water stress and offering a predictable water supply even during times of low precipitation.
Limited Connection to Regional Water Sources: Widely used freshwater sources, such as rivers and aquifers, can be stressed by high and growing stream diversion rates, high pumping levels, and climate change. Seawater desalination reduces the dependence on these sources, offering a more reliable and sustainable alternative.
Technical Advances: In recent years, advances in desalination technology have made the process more energy efficient and cost effective, making it a more economically viable option for addressing water scarcity challenges, especially for urban uses. A reduced cost of this backstop technology reduces the waiting period for it to be economically attractive to switch from existing depletable regional sources to the backstop.
Several Water Use Applications: Desalinated seawater can be used for several purposes, namely domestic household use, irrigation when subsidized, food processing, and even to replenish aquifers and augment surface water if the price is suitably low. This flexibility has increased its value as a backstop technology for the use of many kinds of water, especially urban domestic water.
Complements Existing Water Sources: Seawater desal does not always replace existing water sources but can complement them. In particular, where desalination can achieve affordable technical advances or government subsidies, it can reduce the stress on existing freshwater sources. Complementarity is especially important for arid regions worldwide facing population growth, growing cities, or growing water use resulting from an expanded scale of commercial, industrial, municipal, or irrigation activities needed for food security.
Overall, while seawater desalting is associated with high energy use, brine disposal, and currently high costs, it can become an important technology for supporting water security, especially in the world’s arid and semiarid regions where existing supplies are facing increased stress. Moreover, with continued technical advancements in desalination, it is likely to play a growing role internationally.
8.6 Optimization Model
The ADAM models imported seawater desal water as a backstop technology, i.e., an expensive but perfect substitute for water supplied by regional sources such as rivers, reservoirs, and aquifers. With continued evidence of climate water stress internationally, there is growing interest in the discovery and development of nondepletable water sources for dealing with declining surface water and groundwater sources.