A new agreement on water access in the West Bank- What is at stake? An economy-wide cross-border-analysis

Jonas Luckmann, Khalid Siddig and Johanes Agbahey

No 333078, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: This paper analyzes the effects of increasing Palestinian access to shared groundwater aquifers with Israel. A water-focused computable general equilibrium model is applied to the economies of the West Bank and Israel and two simulations are analyzed: First, the water abstraction rate of the Palestinian side is raised to the maximal allowance according to the current agreement on shared water resources between the two political entities, replacing more costly water imports from Israel. In a second simulation, a new agreement is implemented resulting in an equiproportionate access to shared aquifers. It is expected that the welfare gains from increased water access on the Palestinian side outweigh the losses to the Israeli economy, as the latter is less dependent on groundwater resources and has more substitution possibilities, including reclamation of wastewater and seawater desalination.

Keywords: Resource/Energy; Economics; and; Policy (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:ags:pugtwp:333078

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