A modified CVaR‐based interval coordination model for economic benefit and pollutant discharge

Abstract This paper proposes a modified conditional value‐at‐risk interval two‐stage stochastic programming coordination model (MCITSP) for water allocation and illustrates its advantages in risk aversion and pollution control. We analyze its performance in maintaining the equity of water use in various sectors, which is specifically reflected in the water satisfaction of multiple users. In this paper, the MCITSP model and original ITSP model are applied to the case of the Hanjiang River Basin, and three scenarios of water availability are set up to provide theoretical support for water allocation. Our results show that the MCITSP model with a higher risk coefficient has a stronger ability to avoid risks. The MCITSP model simultaneously controls pollutant discharge and guarantees economic benefits, making it superior to the ITSP model under different scenarios. Water shortages primarily affect the agricultural sector, due to its high water demand and low economic value, and the MCITSP model plays a positive role in maintaining equity and coordinating water conflicts among multiple users. Managers can choose appropriate model parameters according to their preferences to formulate more reasonable decisions.