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Climate Change and the Stability of Water Allocation Agreements

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Listed:
  • Erik Ansink

    (Wageningen University)

  • Arjan Ruijs

    (Wageningen University)

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

  • Erik Ansink & Arjan Ruijs, 2007. "Climate Change and the Stability of Water Allocation Agreements," Working Papers 2007.16, Fondazione Eni Enrico Mattei.
    • Handle: RePEc:fem:femwpa:2007.16
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    References listed on IDEAS

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    More about this item

    Keywords

    Water Allocation; Stability; Climate Change; Game Theory;
    All these keywords.

    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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