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Reallocating Water: An Application of Sequent

Author

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  • Erik Ansink

    (Wageningen University)

  • Carmen Marchiori

    (London School of Economics)

Abstract

We present an axiomatic approach to the reallocation of water rights among economic sectors. Reallocation may be appropriate when the current schedule of water allocation is considered unfair. Our proposed approach is based on the combination of initial water rights, sectors' claims to water, and an exogenous ordering of these sectors. We apply sharing rules, based on bankruptcy rules, to reallocate water, which complements other approaches to the reallocation of water rights, including those based on water markets. Our approach is illustrated using an application to water reallocation in Cyprus, where reallocation of water rights has been recognised as an essential step towards good water governance and one of the main challenges for current water policies.

Suggested Citation

  • Erik Ansink & Carmen Marchiori, 2009. "Reallocating Water: An Application of Sequent," Working Papers 2009.126, Fondazione Eni Enrico Mattei.
    • Handle: RePEc:fem:femwpa:2009.126
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    4. Dagmawi Mulugeta Degefu & Weijun He & Liang Yuan & Jian Hua Zhao, 2016. "Water Allocation in Transboundary River Basins under Water Scarcity: a Cooperative Bargaining Approach," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 30(12), pages 4451-4466, September.
    5. Dagmawi Mulugeta Degefu & Weijun He, 2016. "Allocating Water under Bankruptcy Scenario," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 30(11), pages 3949-3964, September.
    6. Carmen Marchiori & Susan Sayre & Leo Simon, 2012. "On the Implementation and Performance of Water Rights Buyback Schemes," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 26(10), pages 2799-2816, August.
    7. Gebregziabher, Gebrehaweria & Rebelo, Lisa-Maria & Notenbaert, A. & Ergano, K. & Abebe, Yenenesh, 2013. "Determinants of adoption of rainwater management technologies among farm households in the Nile River Basin," IWMI Reports 201008, International Water Management Institute.

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    More about this item

    Keywords

    Water Reallocation; Sequential Sharing Rule; Water Scarcity; Axiomatic Approach; Cyprus;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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