Climate Change and the Stability of Water Allocation Agreements |
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Authors: | Erik Ansink Arjan Ruijs |
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Institution: | (1) Environmental Economics and Natural Resources Group, Wageningen University, P.O. Box 8130, Wageningen, 6700 EW, The Netherlands |
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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 a decrease in mean river flow decreases the stability of an agreement, while
an increased variance can have a positive or a negative effect on stability. An agreement where the downstream country is
allocated a fixed amount of water has the lowest stability compared to other sharing rules. These results hold for both constant
and flexible non-water transfers. |
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Keywords: | Climate change Game theory Stability Water allocation |
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