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Reallocating Water: An Application of Sequential Sharing Rules to Cyprus

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  • Ansink, Erik
  • Marchiori, Carmen

Abstract

We present an axiomatic approach to the reallocation of water rights among economic sectors. Reallocation may be appropriate when the current schedule of water allocation is considered unfair. Our proposed approach is based on the combination of initial water rights, sectors' claims to water, and an exogenous ordering of these sectors. We apply sharing rules, based on bankruptcy rules, to reallocate water, which complements other approaches to the reallocation of water rights, including those based on water markets. Our approach is illustrated using an application to water reallocation in Cyprus, where reallocation of water rights has been recognised as an essential step towards good water governance and one of the main challenges for current water policies.

Suggested Citation

  • Ansink, Erik & Marchiori, Carmen, 2009. "Reallocating Water: An Application of Sequential Sharing Rules to Cyprus," Sustainable Development Papers 56222, Fondazione Eni Enrico Mattei (FEEM).
  • Handle: RePEc:ags:feemdp:56222
    DOI: 10.22004/ag.econ.56222
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    File URL: https://ageconsearch.umn.edu/record/56222/files/126-09.pdf
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    References listed on IDEAS

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    1. Carmen Herrero & Juan Moreno-Ternero & Giovanni Ponti, 2010. "On the adjudication of conflicting claims: an experimental study," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 34(1), pages 145-179, January.
    2. Phoebe Koundouri & Panos Pashardes & Timothy Swanson & Anastasios Xepapadeas, "undated". "The Economics of Water Management in Developing Countries Problems, Principles and Policies," DEOS Working Papers 0303, Athens University of Economics and Business.
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    8. Marianne Lefebvre, 2011. "Sharing Rules for Common-Pool Resources when Self-insurance is Available: an Experiment," Working Papers 11-22, LAMETA, Universtiy of Montpellier, revised Jun 2012.
    9. Erik Ansink & Hans-Peter Weikard, 2015. "Composition properties in the river claims problem," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 44(4), pages 807-831, April.
    10. Kristof Bosmans & Erik Schokkaert, 2009. "Equality preference in the claims problem: a questionnaire study of cuts in earnings and pensions," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 33(4), pages 533-557, November.
    11. Sprumont, Yves, 1991. "The Division Problem with Single-Peaked Preferences: A Characterization of the Uniform Allocation Rule," Econometrica, Econometric Society, vol. 59(2), pages 509-519, March.
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    13. Herrero, Carmen & Villar, Antonio, 2001. "The three musketeers: four classical solutions to bankruptcy problems," Mathematical Social Sciences, Elsevier, vol. 42(3), pages 307-328, November.
    14. Erik Ansink & Hans-Peter Weikard, 2012. "Sequential sharing rules for river sharing problems," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 38(2), pages 187-210, February.
    15. Phoebe Koundouri & Panos Pashardes & Timothy Swanson & Anastasios Xepapadeas, "undated". "The Economics of Water Management in Developing Countries Problems, Principles and Policies," DEOS Working Papers 0303, Athens University of Economics and Business.
    16. Molden, David, 2007. "Water for food, water for life: a comprehensive assessment of water management in agriculture: summary. In Arabic," IWMI Books, Reports H041261, International Water Management Institute.
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    19. Susan E. Stratton & Leo K. Simon & Carmen Marchiori, 2008. "Promoting Groundwater Reform in the Guadiana Basin," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(5), pages 1343-1349.
    20. Phoebe Koundouri & Panos Pashardes & Timothy M. Swanson & Anastasios Xepapadeas (ed.), 2003. "The Economics of Water Management in Developing Countries," Books, Edward Elgar Publishing, number 2846.
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    Cited by:

    1. Carmen Marchiori & Susan Sayre & Leo Simon, 2012. "On the Implementation and Performance of Water Rights Buyback Schemes," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 26(10), pages 2799-2816, August.

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    More about this item

    Keywords

    Environmental Economics and Policy;

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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