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Fixed Water Sharing Agreements Sustainable to Drought

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  • Ambec, Stefan
  • Dinar, Ariel
  • McKinney, Daene

Abstract

By signing a fixed water sharing agreement (FWSA), countries voluntarily commit to release a fixed amount of river water in exchange for an agreed compensation. We examine the vulnerability of such commitments to reduced water ows. Among all FWSAs that are acceptable to riparian countries, we find out the one which is sustainable to the most severe drought scenarios. The so-called upstream incremental FWSA assigns to each country its marginal contribution to its followers in the river. Its mirror image, the downstream incremental FWSA, is not sustainable to reduced ow at the source. We apply our analysis to the Aral Sea basin agreement.

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Paper provided by Institut d'Économie Industrielle (IDEI), Toulouse in its series IDEI Working Papers with number 695.

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Date of creation: Oct 2011
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Publication status: Published in Journal of Environmental Economics and Management, vol.�66, novembre 2013, p.�639-655.
Handle: RePEc:ide:wpaper:25458

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  1. Erik Ansink & Arjan Ruijs, 2007. "Climate Change and the Stability of Water Allocation Agreements," Working Papers 2007.16, Fondazione Eni Enrico Mattei.
  2. Ambec, S. & Sprumont, Y., 2000. "Sharing a River," Cahiers de recherche 2000-08, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
  3. Gary D. Libecap, 2011. "Institutional Path Dependence in Climate Adaptation: Coman's "Some Unsettled Problems of Irrigation"," American Economic Review, American Economic Association, vol. 101(1), pages 64-80, February.
  4. D. Kilgour & Ariel Dinar, 2001. "Flexible Water Sharing within an International River Basin," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 18(1), pages 43-60, January.
  5. Ambec, Stefan & Ehlers, Lars, 2008. "Sharing a river among satiable agents," Games and Economic Behavior, Elsevier, vol. 64(1), pages 35-50, September.
  6. Wang, Yuntong, 2011. "Trading water along a river," Mathematical Social Sciences, Elsevier, vol. 61(2), pages 124-130, March.
  7. Erik Ansink & Hans-Peter Weikard, 2012. "Sequential sharing rules for river sharing problems," Social Choice and Welfare, Springer, vol. 38(2), pages 187-210, February.
  8. René Brink & Gerard Laan & Valeri Vasil’ev, 2007. "Component efficient solutions in line-graph games with applications," Economic Theory, Springer, vol. 33(2), pages 349-364, November.
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Cited by:
  1. Ambec, Stefan & Dinar, Ariel & McKinney, Daene, 2013. "Water sharing agreements sustainable to reduced flows," Journal of Environmental Economics and Management, Elsevier, vol. 66(3), pages 639-655.

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