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Cooperation in transboundary water sharing under climate change

Anik Bhaduri, Utpal Manna, Edward Barbier () and Jens Liebe

No 51303, Discussion Papers from University of Bonn, Center for Development Research (ZEF)

Abstract: As multiple countries share a river, the likelihood of a water resource conflict from climate change could be higher between countries. In this paper, we demonstrate how countries can cooperate in transboundary water sharing in a sustainable way, given the impacts of climate change. We illustrate the case of water sharing of the Volta River between the upstream and downstream country, Burkina Faso and Ghana respectively, where the latter country faces a tradeoff of water use between agriculture in the north and production of hydro energy in the south. In the framework of a stochastic Stackelberg differential game, we have shown how the issue of water sharing could be linked to hydropower export that can make water sharing between the countries sustaining in the event of climate change. Our results indicate that during cooperation, Ghana will have an opportunity to increase its water abstraction for agriculture, which has remained largely restricted. We also find that the equilibrium strategies in the long run steady state distribution are stable even with increasing variances of water flow.

Keywords: Resource /Energy Economics and Policy; Risk and Uncertainty (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ene, nep-env and nep-gth
Date: 2009-06
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ubzefd:51303

DOI: 10.22004/ag.econ.51303

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