Hot Stuff: Would Climate Change Alter Transboundary Water Sharing Treaties?
AbstractBy signing an international river sharing agreement (RSA), countries voluntary commit to release water in exchange for a compensation. We examine the robustness of such commitments to reduced water flows. We focus on RSAs that satisfy core lower bounds and fairness upper bounds. We characterize the constrained upstream incremental RSA as the core and fair RSA that is sustainable during the most severe droughts. It assigns to each country its marginal contribution to its followers, up to its maximal benefit from water extraction. It lexicographically maximizes the welfare of the most upstream countries in the set of core and fair RSAs. Its mirror image, the downstream incremental RSA, is not sustainable to drought at the river source.
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Bibliographic InfoPaper provided by Institut d'Économie Industrielle (IDEI), Toulouse in its series IDEI Working Papers with number 656.
Date of creation: Aug 2010
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international river agreement; water; stability; core; fairness; global warming;
Other versions of this item:
- Ambec, Stefan & Dinar, Ariel, 2010. "Hot Stuff: Would Climate Change Alter Transboundary Water Sharing Treaties?," LERNA Working Papers 10.15.321, LERNA, University of Toulouse.
- Ambec, Stefan & Dinar, Ariel, 2010. "Hot Stuff: Would Climate Change Alter Transboundary Water Sharing Treaties?," TSE Working Papers 10-216, Toulouse School of Economics (TSE).
- D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
- Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
- Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
- Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
This paper has been announced in the following NEP Reports:
- NEP-AGR-2011-02-12 (Agricultural Economics)
- NEP-ALL-2011-02-12 (All new papers)
- NEP-ENV-2011-02-12 (Environmental Economics)
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- Pham Do, Kim Hang & Dinar, Ariel & McKinney, Daene, 2011. "Can issue linkage help mitigate externalities and enhance cooperation," MPRA Paper 37408, University Library of Munich, Germany.
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