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Climate Change and the Stability of Water Allocation Agreements

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  • Erik Ansink

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  • Arjan Ruijs

Abstract

We analyse agreements on river water allocation between riparian countries. Besides being efficient, water allocation agreements need to be stable in order to be effective in increasing the efficiency of water use. In this paper, we assess the stability of water allocation agreements, using a game theoretic model. We consider the effects of climate change and the choice of a sharing rule on stability. Our results show that both a decrease in mean river flow and an increase in the variance of river flow decrease the stability of an agreement. An agreement where the downstream country is allocated a fixed amount of water has the lowest stability compared to other sharing rules.

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File URL: http://hdl.handle.net/10.1007/s10640-008-9190-3
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Bibliographic Info

Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 41 (2008)
Issue (Month): 2 (October)
Pages: 249-266

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Handle: RePEc:kap:enreec:v:41:y:2008:i:2:p:249-266

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Web page: http://www.springerlink.com/link.asp?id=100263

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Keywords: Climate change; Game theory; Stability; Water allocation;

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References

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  1. Dinar, Ariel & Rosegrant, Mark W. & Meinzen-Dick, Ruth, 1997. "Water allocation mechanisms : principles and examples," Policy Research Working Paper Series 1779, The World Bank.
  2. Janmaat, John A & Ruijs, Arjan, 2006. "Investing in Arms to Secure Water," MPRA Paper 10667, University Library of Munich, Germany.
  3. Just, Richard E. & Netanyahu, Sinaia, 2000. "The importance of structure in linking games," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 24(1), December.
  4. Carraro, Carlo & Marchiori, Carmen & Sgobbi, Alessandra, 2005. "Applications of negotiation theory to water issues," Policy Research Working Paper Series 3641, The World Bank.
  5. Booker J. F. & Young R. A., 1994. "Modeling Intrastate and Interstate Markets for Colorado River Water Resources," Journal of Environmental Economics and Management, Elsevier, vol. 26(1), pages 66-87, January.
  6. Martin J. Osborne & Ariel Rubinstein, 1994. "A Course in Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262650401, December.
  7. Barret, Scott & DEC, 1994. "Conflict and cooperation in managing international water resources," Policy Research Working Paper Series 1303, The World Bank.
  8. Henry Tulkens & Parkash Chander, 1997. "The Core of an Economy with Multilateral Environmental Externalities," International Journal of Game Theory, Springer, vol. 26(3), pages 379-401.
  9. D. Kilgour & Ariel Dinar, 2001. "Flexible Water Sharing within an International River Basin," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 18(1), pages 43-60, January.
  10. Kilgour, D. Marc & Dinar, Ariel, 1995. "Are stable agreements for sharing international river waters now possible?," Policy Research Working Paper Series 1474, The World Bank.
  11. Henk Folmer & Pierre Mouche & Shannon Ragland, 1993. "Interconnected games and international environmental problems," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 3(4), pages 313-335, August.
  12. Just, Richard E. & Netanyahu, Sinaia, 2000. "The importance of structure in linking games," Agricultural Economics, Blackwell, vol. 24(1), pages 87-100, December.
  13. Lynne Lewis Bennett & Charles W. Howe & James Shope, 2000. "The Interstate River Compact as a Water Allocation Mechanism: Efficiency Aspects," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(4), pages 1006-1015.
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Citations

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Cited by:
  1. Ansink, Erik & Weikard, Hans-Peter, 2013. "Composition properties in the river claims problem," MPRA Paper 51618, University Library of Munich, Germany.
  2. Ambec, Stefan & Dinar, Ariel & McKinney, Daene, 2011. "Fixed Water Sharing Agreements Sustainable to Drought," IDEI Working Papers 695, Institut d'Économie Industrielle (IDEI), Toulouse.
  3. Dong, Baomin & Ni, Debing & Wang, Yuntong, 2012. "Sharing a polluted river network," MPRA Paper 38839, University Library of Munich, Germany.
  4. Bhaduri, Anik & Perez, Nicostrato D. & Liebe, Jens, 2008. "Scope and Sustainability of Cooperation in Transboundary Water Sharing of the Volta River," Discussion Papers 43324, University of Bonn, Center for Development Research (ZEF).
  5. Maja Schlüter & Alessandro Tavoni & Simon Levin, 2014. "Robustness of norm-driven cooperation in the commons to environmental variability," Grantham Research Institute on Climate Change and the Environment Working Papers 146, Grantham Research Institute on Climate Change and the Environment.
  6. Erik Ansink & Hans-Peter Weikard, 2012. "Sequential sharing rules for river sharing problems," Social Choice and Welfare, Springer, vol. 38(2), pages 187-210, February.
  7. Dinar, Shlomi & Katz, David & De Stefano, Lucia & Blankespoor, Brian, 2014. "Climate change, conflict, and cooperation : global analysis of the resilience of international river treaties to increased water variability," Policy Research Working Paper Series 6916, The World Bank.
  8. Ambec, Stefan & Dinar, Ariel & McKinney, Daene, 2013. "Water sharing agreements sustainable to reduced flows," Journal of Environmental Economics and Management, Elsevier, vol. 66(3), pages 639-655.
  9. Harold Houba & Erik Ansink, 2013. "Sustainable Agreements on Stochastic River Flow," Tinbergen Institute Discussion Papers 13-182/II, Tinbergen Institute.
  10. Lucia De Stefano & James Duncan & Shlomi Dinar & Kerstin Stahl & Kenneth M Strzepek & Aaron T Wolf, 2012. "Climate change and the institutional resilience of international river basins," Journal of Peace Research, Peace Research Institute Oslo, vol. 49(1), pages 193-209, January.
  11. Dinar, Ariel & Blankespoor, Brian & Dinar, Shlomi & Kurukulasuriya, Pradeep, 2010. "Does precipitation and runoff variability affect treaty cooperation between states sharing international bilateral rivers?," Ecological Economics, Elsevier, vol. 69(12), pages 2568-2581, October.
  12. Erik Ansink, 2009. "Self-enforcing Agreements on Water allocation," Working Papers 2009.73, Fondazione Eni Enrico Mattei.

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