Climate Change and the Stability of Water Allocation Agreements
AbstractWe 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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Bibliographic InfoPaper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2007.16.
Date of creation: Feb 2007
Date of revision:
Water Allocation; Stability; Climate Change; Game Theory;
Other versions of this item:
- Erik Ansink & Arjan Ruijs, 2008. "Climate Change and the Stability of Water Allocation Agreements," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 41(2), pages 249-266, October.
- C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
- Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
This paper has been announced in the following NEP Reports:
- NEP-AGR-2007-03-17 (Agricultural Economics)
- NEP-ALL-2007-03-17 (All new papers)
- NEP-ENE-2007-03-17 (Energy Economics)
- NEP-ENV-2007-03-17 (Environmental Economics)
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