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Cooperation and equity in the river sharing problem

Author

Listed:
  • Ambec, S.
  • Ehlers, L.

Abstract

This paper considers environments in which several agents (countries, farmers, cities) share water from a river. Each agent enjoys a concave benefit function from consuming water up to a satiation level. Noncooperative extraction is typically inefficient and any group of agents can gain if they agree on how to allocate water with monetary compensations. The paper describes which allocations of water and money are acceptable to riparian agents according to core stability and several criteria of fairness. It reviews some theoretical results. It then discusses the implementation of the proposed allocation with negotiation rules and in water markets. Lastly, it provides some policy insights.

Suggested Citation

  • Ambec, S. & Ehlers, L., 2007. "Cooperation and equity in the river sharing problem," Working Papers 200705, Grenoble Applied Economics Laboratory (GAEL).
  • Handle: RePEc:gbl:wpaper:200705
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    File URL: https://gael.univ-grenoble-alpes.fr/sites/gael/files/doc-recherche/WP/A2007/gael2007-06.pdf
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    Cited by:

    1. Erik Ansink & Carmen Marchiori, 2015. "Reallocating Water: An Application of Sequential Sharing Rules to Cyprus," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 1(04), pages 1-22, December.
    2. Baomin Dong & Debing Ni & Yuntong Wang, 2012. "Sharing a Polluted River Network," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 53(3), pages 367-387, November.
    3. Wang, Yuntong, 2011. "Trading water along a river," Mathematical Social Sciences, Elsevier, vol. 61(2), pages 124-130, March.
    4. Ansink, Erik & Houba, Harold, 2016. "Sustainable agreements on stochastic river flow," Resource and Energy Economics, Elsevier, vol. 44(C), pages 92-117.
    5. Rodney Beard, 2011. "The river sharing problem : A review of the technical literature for policy economists," Post-Print hal-00827354, HAL.
    6. Hu Lu & Yuntong Wang, 2014. "Efficient trading on a network with incomplete information," Working Papers 1405, University of Windsor, Department of Economics.

    More about this item

    Keywords

    WATER ALLOCATION; GAME; CORE; WATER MARKET; NEGOTIATION; RULES; EXTERNALITIES;

    JEL classification:

    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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