A Novel Probabilistic Model for Streamflow Analysis and Its Role in Risk Management and Environmental Sustainability

Probabilistic streamflow models play a pivotal role in quantifying hydrological uncertainty and form the backbone of modern risk management strategies for flood and drought forecasting, water allocation planning, and the design of resilient infrastructure. Unlike deterministic approaches that yield single-point estimates, these models provide a spectrum of possible outcomes, enabling a more realistic assessment of extreme events and supporting informed, sustainable water resource decisions. By explicitly accounting for natural variability and uncertainty, probabilistic models promote transparent, robust, and equitable risk evaluations, helping decision-makers balance economic costs, societal benefits, and environmental protection for long-term sustainability. In this study, we introduce the bounded half-logistic distribution (BHLD), a novel heavy-tailed probability model constructed using the T–Y method for distribution generation, where T denotes a transformer distribution and Y represents a baseline generator. Although the BHLD is conceptually related to the Pareto and log-logistic families, it offers several distinctive advantages for streamflow modeling, including a flexible hazard rate that can be unimodal or monotonically decreasing, a finite lower bound, and closed-form expressions for key risk measures such as Value at Risk (VaR) and Tail Value at Risk (TVaR). The proposed distribution is defined on a lower-bounded domain, allowing it to realistically capture physical constraints inherent in flood processes, while a log-logistic-based tail structure provides the flexibility needed to model extreme hydrological events. Moreover, the BHLD is analytically characterized through a governing differential equation and further examined via its characteristic function and the maximum entropy principle, ensuring stable and efficient parameter estimation. It integrates a half-logistic generator with a log-logistic baseline, yielding a power-law tail decay governed by the parameter <inline-formula><math xmlns="http://www.w3.org/1998/Math/MathML" display="inline"><semantics><mi>β</mi></semantics></math></inline-formula>, which is particularly effective for representing extreme flows. Fundamental properties, including the hazard rate function, moments, and entropy measures, are derived in closed form, and model parameters are estimated using the maximum likelihood method. Applied to four real streamflow data sets, the BHLD demonstrates superior performance over nine competing distributions in goodness-of-fit analyses, with notable improvements in tail representation. The model facilitates accurate computation of hydrological risk metrics such as VaR, TVaR, and tail variance, uncovering pronounced temporal variations in flood risk and establishing the BHLD as a powerful and reliable tool for streamflow modeling under changing environmental conditions.