**System Dynamics Modeling for Evaluating Regional Hydrologic and Economic Effects of Irrigation Efficiency Policy**

**Yining Bai 1,\*, Saeed P. Langarudi 1 and Alexander G. Fernald 1,2**


**Abstract:** Exploring the dynamic mechanisms of coupled sociohydrologic systems is necessary to solve future water sustainability issues. This paper employs system dynamics modeling to determine hydrologic and economic implications of an irrigation efficiency (IE) policy (increased conveyance efficiency and field efficiency) in a coupled sociohydrologic system with three climate scenarios. Simulations are conducted within the lower Rio Grande region (LRG) of New Mexico for the years 1969 to 2099, including water, land, capital, and population modules. Quadrant analysis is utilized to compare the IE policy outcomes with the base case and to categorize results of simulations according to hydrologic and economic sustainability. The four categories are beneficial, unacceptable, unsustainable agricultural development, and unsustainable hydrology. Simulation results for the IE policy analyzed here fall into the categories of unsustainable agricultural development or unacceptable, suggesting there are long-term negative effects to regional economies in all scenarios with mixed results for hydrologic variables. IE policy can yield water for redistribution as increased unit water supply in the field produces more deep percolation; however, IE policy sacrifices regional connectivity. Specifically, simulation results show that the policy increases abundance by 4.7–74.5% and return flow by −3.0–9.9%. These positive results, however, come at the cost of decreased hydrologic connectivity (−31.5 to −25.1%) and negative economic impacts (−32.7 to −5.7%). Long-term net depletions in groundwater are also observed from loss of hydrologic connectivity and increased agricultural water demand from projections of increased consumptive use of crops. Adaptive water managemen<sup>t</sup> that limits water use in drought years and replenishes groundwater in abundant years as well as economic incentives to offset the costs of infrastructure improvements will be necessary for the IE policy to result in sustainable agriculture and water resources.

**Keywords:** socio-hydrology; irrigation efficiency; surface water-groundwater interactions; sustainability
