Redistributing Water Rights between the West Bank and IsraelMore Than A Zero-Sum Game?

In this study, we analyze the effects of increasing Palestinian access to shared groundwater aquifers with Israel. We apply a water focused computable general equilibrium model to the economies of the West Bank and Israel and analyze two simulations. In the first, we raise the water abstraction rate of the West Bank to the maximal allowance according to the current interim agreement on shared water resources with Israel. In the second, we implement a new agreement that assumes an equiproportionate access to shared aquifers. Thereby, we quantify the implications for the two territories as well as for the overall region. Results show that the economic gains from increased water access to the West Bank economy by far outweigh the losses to the Israeli economy, as the latter is less dependent on shared groundwater resources and has other alternative sources including reclaimed wastewater and desalinated seawater. This is the first study to address this issue taking into account the economy-wide implications of such a new agreement on the use of shared water resources between Palestine and Israel. The modelling approach presented here can be used to substantiate the political negotiation process towards a final agreement on access to shared water resources between Israel and the West Bank.