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International water transfer and sharing: the case of the Ganges River

Published online by Cambridge University Press:  01 February 2008

ANIK BHADURI  and
EDWARD B. BARBIER
ANIK BHADURI
Affiliation:
International Water Management Institute, National Agriculture Science Centre Complex, New Delhi 110012, India, Email: [email protected]
EDWARD B. BARBIER
Affiliation:
Department of Economics and Finance, University of Wyoming, P.O. Box 3985, E. 1000 University Avenue, Laramie, WY 82071, USA, Email: [email protected]
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Abstract

The following paper is concerned with water sharing of the Ganges River between India and Bangladesh, with possible augmentation through water transfers from Nepal. We analyzed the case when water from Nepal can be transferred to Bangladesh through the upstream country, India, as the local geography only permits such water transfer. A game theoretic model is formulated to determine the optimal share of water diverted to Bangladesh by India, and the optimal amount of water transfer from Nepal. India may gain positive externalities from such water transfer. The positive externalities generated from water transfer from Nepal may influence the water share of both India and Bangladesh. In the absence of altruism, India would allow less water flow to Bangladesh than in the case when there is no provision to buy water from Nepal. We also explored whether positive externalities could induce India to buy water jointly with Bangladesh, and such a case will only occur if the countries possess altruistic concerns and share water according to an agreement.

Type
Research Article
Information
Environment and Development Economics , Volume 13 , Issue 1 , February 2008 , pp. 29 - 51
Copyright
Copyright © Cambridge University Press 2008

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