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Cooperation in transboundary water sharing under climate change

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  • Bhaduri, Anik
  • Manna, Utpal
  • Barbier, Edward B.
  • Liebe, Jens

Abstract

As multiple countries share a river, the likelihood of a water resource conflict from climate change could be higher between countries. In this paper, we demonstrate how countries can cooperate in transboundary water sharing in a sustainable way, given the impacts of climate change. We illustrate the case of water sharing of the Volta River between the upstream and downstream country, Burkina Faso and Ghana respectively, where the latter country faces a tradeoff of water use between agriculture in the north and production of hydro energy in the south. In the framework of a stochastic Stackelberg differential game, we have shown how the issue of water sharing could be linked to hydropower export that can make water sharing between the countries sustaining in the event of climate change. Our results indicate that during cooperation, Ghana will have an opportunity to increase its water abstraction for agriculture, which has remained largely restricted. We also find that the equilibrium strategies in the long run steady state distribution are stable even with increasing variances of water flow.

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Bibliographic Info

Paper provided by University of Bonn, Center for Development Research (ZEF) in its series Discussion Papers with number 51303.

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Date of creation: Jun 2009
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Handle: RePEc:ags:ubzefd:51303

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Related research

Keywords: Climate Change; Water sharing; Resource /Energy Economics and Policy; Risk and Uncertainty;

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  1. 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).
  2. Edward Barbier, 2002. "Water and Economic Growth," Centre for International Economic Studies Working Papers 2002-28, University of Adelaide, Centre for International Economic Studies.
  3. Fisher, Anthony C. & Rubio, Santiago J., 1997. "Adjusting to Climate Change: Implications of Increased Variability and Asymmetric Adjustment Costs for Investment in Water Reserves," Journal of Environmental Economics and Management, Elsevier, vol. 34(3), pages 207-227, November.
  4. Knapp Keith C. & Olson Lars J., 1995. "The Economics of Conjunctive Groundwater Management with Stochastic Surface Supplies," Journal of Environmental Economics and Management, Elsevier, vol. 28(3), pages 340-356, May.
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