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Cooperation and equity in the river sharing problem

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Author Info
Ambec, S.
Ehlers, L.

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Abstract

This paper considers environments in which several agents (countries, farmers, cities) share water from a river. Each agent enjoys a concave benefit function from consuming water up to a satiation level. Noncooperative extraction is typically inefficient and any group of agents can gain if they agree on how to allocate water with monetary compensations. The paper describes which allocations of water and money are acceptable to riparian agents according to core stability and several criteria of fairness. It reviews some theoretical results. It then discusses the implementation of the proposed allocation with negotiation rules and in water markets. Lastly, it provides some policy insights.

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File URL: http://www.grenoble.inra.fr/Docs/pub/A2007/gael2007-06.pdf
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Publisher Info
Paper provided by Grenoble Applied Economics Laboratory (GAEL) in its series Working Papers with number 200705.

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Date of creation: 2007
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Handle: RePEc:gbl:wpaper:200705

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Related research
Keywords: WATER ALLOCATION; GAME; CORE; WATER MARKET; NEGOTIATION; RULES; EXTERNALITIES;

Find related papers by JEL classification:
Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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This page was last updated on 2009-11-7.

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