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Climate Change and the Stability of Water Allocation Agreements

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  • Ansink, Erik
  • Ruijs, Arjan

Abstract

We analyse agreements on river water allocation between riparian countries. Besides being efficient, water allocation agreements need to be stable in order to be effective in increasing the efficiency of water use. In this paper, we assess the stability of water allocation agreements, using a game theoretic model. We consider the effects of climate change and the choice of a sharing rule on stability. Our results show that both a decrease in mean river flow and an increase in the variance of river flow decrease the stability of an agreement. An agreement where the downstream country is allocated a fixed amount of water has the lowest stability compared to other sharing rules.

Suggested Citation

  • Ansink, Erik & Ruijs, Arjan, 2007. "Climate Change and the Stability of Water Allocation Agreements," Economic Theory and Applications Working Papers 10272, Fondazione Eni Enrico Mattei (FEEM).
    • Handle: RePEc:ags:feemet:10272
    DOI: 10.22004/ag.econ.10272
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    More about this item

    Keywords

    Resource /Energy Economics and Policy;

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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