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Climate Change and the Stability of Water Allocation Agreements

  • Erik Ansink

    (Wageningen University)

  • Arjan Ruijs

    (Wageningen University)

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.

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Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2007.16.

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Date of creation: Feb 2007
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Handle: RePEc:fem:femwpa:2007.16
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  1. Martin J Osborne & Ariel Rubinstein, 2009. "A Course in Game Theory," Levine's Bibliography 814577000000000225, UCLA Department of Economics.
  2. Just, Richard E. & Netanyahu, Sinaia, 2000. "The importance of structure in linking games," Agricultural Economics, Blackwell, vol. 24(1), pages 87-100, December.
  3. Barret, Scott & DEC, 1994. "Conflict and cooperation in managing international water resources," Policy Research Working Paper Series 1303, The World Bank.
  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. CHANDER, Parkash & TULKENS, Henry, 1995. "The Core of an Economy with Multilateral Environmental Externalities," CORE Discussion Papers 1995050, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  6. Henk Folmer & Pierre Mouche & Shannon Ragland, 1993. "Interconnected games and international environmental problems," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 3(4), pages 313-335, August.
  7. Janmaat, John A & Ruijs, Arjan, 2006. "Investing in Arms to Secure Water," MPRA Paper 10667, University Library of Munich, Germany.
  8. Booker J. F. & Young R. A., 1994. "Modeling Intrastate and Interstate Markets for Colorado River Water Resources," Journal of Environmental Economics and Management, Elsevier, vol. 26(1), pages 66-87, January.
  9. Dinar, Ariel & Rosegrant, Mark W. & Meinzen-Dick, Ruth, 1997. "Water allocation mechanisms : principles and examples," Policy Research Working Paper Series 1779, The World Bank.
  10. Lynne Lewis Bennett & Charles W. Howe & James Shope, 2000. "The Interstate River Compact as a Water Allocation Mechanism: Efficiency Aspects," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(4), pages 1006-1015.
  11. Kilgour, D. Marc & Dinar, Ariel, 1995. "Are stable agreements for sharing international river waters now possible?," Policy Research Working Paper Series 1474, The World Bank.
  12. Carraro, Carlo & Marchiori, Carmen & Sgobbi, Alessandra, 2005. "Applications of negotiation theory to water issues," Policy Research Working Paper Series 3641, The World Bank.
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