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Transboundary Water Management: Can Issue Linkage Help Mitigate Externalities?

Author

Listed:
  • KIM HANG PHAM DO

    (School of Economics and Finance, Massey University, Palmerston North, New Zealand)

  • ARIEL DINAR

    (Water Sciences and Policy Center, Department of Environmental Sciences, University of California, Riverside, USA)

  • DAENE MCKINNEY

    (Center for Research in Water Resources, Department of Civil, Architectural and Environmental Engineering, University of Texas at Austin, USA)

Abstract

Managing transboundary river basins is never easy and usually involves conflicts. This paper introduces a special class of games with externalities and issue linkage to promote cooperation on transboundary water resources. The paper analyzes whether issue linkages can be used as a form of negotiations on sharing benefits and mitigating conflicts. It is shown that whenever opportunities for linkages exist, countries may indeed contribute towards cooperation. In particular, if the linked games are convex, the grand coalition is the only optimal level of social welfare.

Suggested Citation

  • Kim Hang Pham Do & Ariel Dinar & Daene Mckinney, 2012. "Transboundary Water Management: Can Issue Linkage Help Mitigate Externalities?," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 14(01), pages 1-20.
    • Handle: RePEc:wsi:igtrxx:v:14:y:2012:i:01:n:s0219198912500028
    DOI: 10.1142/S0219198912500028
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    References listed on IDEAS

    as
    1. Ambec, Stefan & Dinar, Ariel, 2010. "Hot Stuff: Would Climate Change Alter Transboundary Water Sharing Treaties?," IDEI Working Papers 656, Institut d'Économie Industrielle (IDEI), Toulouse.
    2. CHANDER, Parkash, 2010. "Cores of games with positive externalities," LIDAM Discussion Papers CORE 2010004, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    3. Kroeze-Gil, J., 2003. "International Environmental Problems, Issue Linkage and the European Union," Other publications TiSEM 8763c9c4-fda8-444a-950c-6, Tilburg University, School of Economics and Management.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Soliev, Ilkhom & Theesfeld, Insa & Wegerich, Kai & Platonov, Alexander, 2017. "Dealing with “Baggage” in Riparian Relationship on Water Allocation: A Longitudinal Comparative Study from the Ferghana Valley," Ecological Economics, Elsevier, vol. 142(C), pages 148-162.
    2. Kim Hang Pham Do & Ariel Dinar, 2016. "The linkages of energy, water, and land use in Southeast Asia: Challenges and opportunities for the Mekong region," WIDER Working Paper Series wp-2016-62, World Institute for Development Economic Research (UNU-WIDER).
    3. Kim Hang Pham Do, 2014. "The Role of Issue Linkage in Managing the Mekong," WIDER Working Paper Series wp-2014-164, World Institute for Development Economic Research (UNU-WIDER).
    4. Marianna Khachaturyan & Karina Schoengold, 2019. "Applying Interconnected Game Theory to Analyze Transboundary Waters: A Case Study of the Kura–Araks Basin," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 5(01), pages 1-32, January.
    5. Yingxuan Zhang, 2020. "Regional Collaborative Electricity Consumption Management: an Urban Operations Research Model," SN Operations Research Forum, Springer, vol. 1(4), pages 1-28, December.
    6. Ert, Eyal & Cohen-Amin, Shier & Dinar, Ariel, 2019. "The effect of issue linkage on cooperation in bilateral conflicts: An experimental analysis," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 79(C), pages 134-142.
    7. Pham Do, Kim Hang, 2014. "The role of issue linkage in managing the Mekong," WIDER Working Paper Series 164, World Institute for Development Economic Research (UNU-WIDER).
    8. Kim Do & Ariel Dinar, 2016. "The linkages of energy, water, and land use in Southeast Asia: Challenges and opportunities for the Mekong region," WIDER Working Paper Series 062, World Institute for Development Economic Research (UNU-WIDER).
    9. Soliev, Ilkhom & Theesfeld, Insa & Abert, Eileen & Schramm, Wiebke, 2021. "Benefit sharing and conflict transformation: Insights for and from REDD+ forest governance in sub-Saharan Africa," Forest Policy and Economics, Elsevier, vol. 133(C).
    10. Kong, Wen & Knapp, Keith C., 2014. "Economic and Political Equilibrium for a Renewable Natural Resource with International Trade," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170591, Agricultural and Applied Economics Association.

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    More about this item

    Keywords

    Games with externalities; convexity; s-core; transboundary rivers; issue linkage; international water sharing agreement; C71; C72; D62;
    All these keywords.

    JEL classification:

    • B4 - Schools of Economic Thought and Methodology - - Economic Methodology
    • C0 - Mathematical and Quantitative Methods - - General
    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D5 - Microeconomics - - General Equilibrium and Disequilibrium
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

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