Sharing a River among Satiable Countries
AbstractWith diminishing global water reserves the problem of water allocation becomes increasingly important. We consider the problem of efficiently sharing a river among a group of satiable countries. Inducing countries to efficiently cooperate requires monetary compensations via international agreements. We show that cooperation of the other countries exerts a positive externality on the benefit of a coalition. Our problem is to distribute the benefit of efficiently sharing the river under these constraints. If the countries outside of a coalition do not cooperate at all, then the downstream incremental distribution is the unique compromise between the absolute territorial sovereignty (ATS) doctrine and the unlimited territorial integrity (UTI) doctrine. If all countries outside of a coalition cooperate, then there may not exist any distribution satisfying the UTI doctrine.
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Bibliographic InfoPaper provided by Universite de Montreal, Departement de sciences economiques in its series Cahiers de recherche with number 2006-10.
Length: 30 pages
Date of creation: 2006
Date of revision:
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Water Allocation; Externalities;
Other versions of this item:
- Ambec, S. & Ehlers, L., 2006. "Sharing a river among satiable countries," Working Papers 200605, Grenoble Applied Economics Laboratory (GAEL).
- AMBEC, Stefan & EHLERS, Lars, 2006. "Sharing a River among Satiable Countries," Cahiers de recherche 07-2006, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
- D62 - Microeconomics - - Welfare Economics - - - Externalities
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-12-09 (All new papers)
- NEP-ENV-2006-12-09 (Environmental Economics)
- NEP-GTH-2006-12-09 (Game Theory)
- NEP-PBE-2006-12-09 (Public Economics)
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