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International water transfer and sharing: the case of the Ganges River

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  • BHADURI, ANIK
  • BARBIER, EDWARD B.

Abstract

The following paper is concerned with water sharing of the Ganges River between India and Bangladesh, with possible augmentation through water transfers from Nepal. We analyzed the case when water from Nepal can be transferred to Bangladesh through the upstream country, India, as the local geography only permits such water transfer. A game theoretic model is formulated to determine the optimal share of water diverted to Bangladesh by India, and the optimal amount of water transfer from Nepal. India may gain positive externalities from such water transfer. The positive externalities generated from water transfer from Nepal may influence the water share of both India and Bangladesh. In the absence of altruism, India would allow less water flow to Bangladesh than in the case when there is no provision to buy water from Nepal. We also explored whether positive externalities could induce India to buy water jointly with Bangladesh, and such a case will only occur if the countries possess altruistic concerns and share water according to an agreement.

Suggested Citation

  • Bhaduri, Anik & Barbier, Edward B., 2008. "International water transfer and sharing: the case of the Ganges River," Environment and Development Economics, Cambridge University Press, vol. 13(1), pages 29-51, February.
    • Handle: RePEc:cup:endeec:v:13:y:2008:i:01:p:29-51_00
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    Cited by:

    1. Cabo, Francisco & Tidball, Mabel, 2017. "Promotion of cooperation when benefits come in the future: A water transfer case," Resource and Energy Economics, Elsevier, vol. 47(C), pages 56-71.
    2. Bhaduri, Anik & Perez, Nicostrato D. & Liebe, Jens, 2008. "Scope and Sustainability of Cooperation in Transboundary Water Sharing of the Volta River," Discussion Papers 43324, University of Bonn, Center for Development Research (ZEF).
    3. Batabyal, Amitrajeet & Yoo, Seung Jick, 2023. "Heterogeneity in population and values and water pollution control: The Ganges in Kanpur and Varanasi, India," MPRA Paper 120289, University Library of Munich, Germany, revised 06 Feb 2024.
    4. Erik Ansink & Harold Houba, 2014. "The Economics of Transboundary River Management," Tinbergen Institute Discussion Papers 14-132/VIII, Tinbergen Institute.
    5. Tesfaye Woldeyohanes & Arnim Kuhn & Thomas Heckelei & Lalisa Duguma, 2021. "Modeling Non-Cooperative Water Use in River Basins," Sustainability, MDPI, vol. 13(15), pages 1-21, July.
    6. Louis Lebel & Jianchu Xu & Ram Bastakoti & Amrita Lamba, 2010. "Pursuits of adaptiveness in the shared rivers of Monsoon Asia," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 10(4), pages 355-375, December.
    7. Eskander, Shaikh & Janus, Thorsten & Barbier, Edward, 2016. "Linking The Unlinked: Transboundary Water-Sharing Under Water-For-Leverage Negotiations," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235650, Agricultural and Applied Economics Association.
    8. Cabo, Francisco & Erdlenbruch, Katrin & Tidball, Mabel, 2014. "Dynamic management of water transfer between two interconnected river basins," Resource and Energy Economics, Elsevier, vol. 37(C), pages 17-38.

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