Game theory and environmental disputes

The courts have provided the traditional battleground for conflicts between environmental interest groups and those whose actions in some way have an adverse impact on the environment The judicial process is a time-consuming one in which all sides usually must concede to some points. Environmental disputes involve complex scientific issues which the court system is not set up to comprehend, so that the process gives the parties to a dispute the sense of having lost control of their own destinies. An increasing number of parties to environmental disputes are turning to negotiation, or mediation, as an alternative in which they can be active parties in the settlement-making process rather than the victims of a court-imposed solution When do the parties to a dispute choose a negotiated settlement over a court battle? To what extent does each party make the concessions necessary to reach an agreement? These questions can be answered by the game theory that provides a model for analyzing the negotiation process. This paper will apply game theory to two environmental conflict cases A series of questions pertinent to the analysis of all environmental disputes will be raised     

Ten Key Questions About the Management of Water in the Yellow River Basin

Water is scarce in many regions of the world, clean water is difficult to find in most developing countries, there are conflicts between irrigation needs and urban demands, and there is wide debate over appropriate means of resolving these problems. Similarly, in China, there is limited understanding of the ways in which people, groups, and institutions contribute to, are affected by, and respond to changes in water quantity and quality. We use the example of the Yellow River basin to argue that these social, managerial, and policy dimensions of the present water problems are significant and overshadow the physical ones. Despite this, they receive relatively little attention in the research agenda, particularly of the lead agencies in the management of the Yellow River basin. To this end, we ask ten research questions needed to address the policy needs of water management in the basin, split into two groups of five. The first five relate to the importance of water in this basin and the changes that have affected water problems and will continue to do so. The second five questions represent an attempt to explore possible solutions to these problems.     

Assessing equity and sustainability of water allocation in Colombia

Based on the national database of 28,104 water rights (concessions) granted in Colombia, this paper presents an analysis of how the principles of equity and sustainability are reflected in water allocation. Concessions appear to be an exclusionary mechanism since only a minority of small water users have concessions and the distribution of water volumes among those who have them is extremely inequitable. The 2009 Gini coefficient calculated for water concessions granted for agriculture was 0.90 compared with the rural land Gini of 0.88 (both indicators grouping holdings under the same entity). More than half of the Colombian departments have a higher Gini coefficient for water than for land, suggesting that water rights are at least as unequally distributed as land, in one of the most inequitable countries in Latin America. Water allocated to domestic, agriculture and hydropower use indicates a lack of consistency of water allocation criteria across regions. The volumetric and administrative attributes of water allocation in Colombia do not account for environmental flows or the concerns of marginalised groups of society that have limited access to the mechanism. Water allocation as a technical task, with limited transparency and secluded from public scrutiny, does not contribute to the solution of increasing water-related conflicts.     

Scarcity and conflict,key problems in water management: a Mexican case study

Water scarcity has become a key issue in water management. There are two contrasting positions regarding scarcity as a source of conflict or cooperation. Accordingly, it is worth exploring what exactly are the conditions that make water scarcity a source of conflict or cooperation. The history of water conflicts has shown that people are more likely to kill around a water hole than when conflicts grow into national or international issues. This suggests that there may be an inverse relationship between the level of violence and the scale at which the water conflict takes place. A common problem in environmental management has been the lack of effective mechanisms to handle conflict. In the majority of these cases, the main shortcoming was an inability of the parties to identify their differences. Therefore, this research explores the idea that understanding the causes of conflict from the outset, followed by an evaluation, at the local scale, of the conditions, is a necessary precondition to finding appropriate and sustainable solutions. With this background in mind, the objective of this paper is to employ a conflict assessment process in order to explore to the extent to which a collaborative dialogue among stakeholders can be an appropriate approach to conflict resolution. A case study in Mexico is employed as a testing ground.     

Water stress, water transfer and social equity in Northern China--implications for policy reforms

Water stress in Northern China is characterized with major, inefficient irrigation water use and rapidly growing non-agricultural water demands, as well as limited water quantity and declining water quality. Water use in the region is undergoing transfer from agricultural to municipal and industrial sectors. Currently, part of the economic loss and environmental damage due to water stress can be considered as a consequence of water transfer failures, including the current transfers, which hurt farmers' livelihood and income, and the needed transfers, which industry and cities have been waiting for but have not received. This paper starts with a discussion of the causes of water stress in Northern China, which is fundamental to understand the necessity and complexity of agricultural water transfers. Following that, it reviews water transfers in Northern China as a cause for concern over the social stability, economy and environment of the region. Based on an integrated analysis of economic, environmental, fiscal and social implications, this paper begins by identifying critical barriers to smooth water redistribution; and ends with implications for policy reforms, ensuring that farmers can and will save water. It is concluded that the decisions of water reallocation under water stress should be shared by communities at all levels, from the local to the national, to ensure equal access of water, especially the availability of the basic water need for all groups.     

Troubled waters in the Middle East: the process towards the first Regional Water Declaration between Jordan, Palestinian Authority, and Israel

Water disputes in the Middle East are not a new phenomenon. For the first time, however, three parties in the region, Jordan, Israel, and the PLO for the benefit of the Palestinian Authority have concluded a "regional water agreement" within the framework of the Multilateral Peace talks. For the first time, the rationale behind the agreement is being made public by the author, who was the "neutral" facilitator of the negotiations. The article discusses some of the main elements, including issues related to water scarcity as a driving force of conflicts; application of a "track-two diplomatic" approach; some lessons learned; as well as some ethical questions related to international negotiation.     

Efficient and Practical Approaches to Ground‐Water Right Transfers Under the Prior Appropriation Doctrine and the Snake River Example1

Abstract: Water right transfers are one of the basic means of implementing changes in water use in the highly appropriated water resource systems of the western United States. Many of these systems are governed by the Prior Appropriation Doctrine, which was not originally intended for application to ground‐water pumping and the conjunctive management of ground water and surface water, and thus creates an administrative challenge. That challenge results from the fact that ground‐water pumping can affect all interconnected surface‐water bodies and the effects may be immeasurably small relative to surface water discharge and greatly attenuated in time. Although we may have the ability to calculate the effects of ground‐water pumping and transfers of pumping location on surface‐water bodies, mitigating for all the impacts of each individual transfer is sufficiently inefficient that it impedes the transfer process, frustrates water users, and consequently inhibits economic development. A more holistic approach to ground‐water right transfers, such as a ground‐water accounting or banking scheme, may adequately control transfer third‐party effects while reducing mitigation requirements on individual transfers. Acceptance of an accounting scheme can accelerate the transfer process, and possibly reduce the administrative burden.     

Integrated Water Resources Management: From general principles to its implementation by the state. The case of Burkina Faso

In 2000, the Global Water Partnership (GWP) as the main advocate of the concept of Integrated Water Resources Management (IWRM), proposed a definition that is now the reference, despite the ambiguity that persists in its interpretation. At the 2002 World Summit on Sustainable Development, the State representatives committed themselves to launch "plans for integrated water resources management and water efficiency by 2005". Some states immediately honoured this commitment by adopting new national water policies inspired by IWRM principles. Do these implementation plans respond to all the challenges of the IWRM? Or have these states simply reorganized their water resource policies to give an impression of conforming to the framework? In response to these questions, we present a history of IWRM and its conflicting interpretations followed by a case study of reforms enacted in Burkina Faso, to highlight some problems which are inherent to IWRM and how IWRM was transposed on a national scale.     

A holistic framework for design of cost-effective minimum water utilization network

Water pinch analysis (WPA) is a well-established tool for the design of a maximum water recovery (MWR) network. MWR, which is primarily concerned with water recovery and regeneration, only partly addresses water minimization problem. Strictly speaking, WPA can only lead to maximum water recovery targets as opposed to the minimum water targets as widely claimed by researchers over the years. The minimum water targets can be achieved when all water minimization options including elimination, reduction, reuse/recycling, outsourcing and regeneration have been holistically applied. Even though WPA has been well established for synthesis of MWR network, research towards holistic water minimization has lagged behind. This paper describes a new holistic framework for designing a cost-effective minimum water network (CEMWN) for industry and urban systems. The framework consists of five key steps, i.e. (1) Specify the limiting water data, (2) Determine MWR targets, (3) Screen process changes using water management hierarchy (WMH), (4) Apply Systematic Hierarchical Approach for Resilient Process Screening (SHARPS) strategy, and (5) Design water network. Three key contributions have emerged from this work. First is a hierarchical approach for systematic screening of process changes guided by the WMH. Second is a set of four new heuristics for implementing process changes that considers the interactions among process changes options as well as among equipment and the implications of applying each process change on utility targets. Third is the SHARPS cost-screening technique to customize process changes and ultimately generate a minimum water utilization network that is cost-effective and affordable. The CEMWN holistic framework has been successfully implemented on semiconductor and mosque case studies and yielded results within the designer payback period criterion.     

MUNICIPAL WATER SUPPLY RESTRICTIONS AS URBAN GROWTH CONSTRAINTS1

ABSTRACT: Municipal water supply restrictions and/or conservation policies are widely believed to affect urban growth, at least in Western states. An analysis of this issue, drawing upon a wide array of empirical water use research, casts doubt upon the presumed connection. Water availability seems likely to have little effect upon the amenities which draw newcomers to Western cities. It also seems to have little effect upon the locational decisions of industries which affect growth by creating new jobs. Consequently, there is little reason to oppose municipal water restrictions as prejudicial to urban growth or to favor such restrictions in the hope of constraining growth.     

ECONOMIC INCENTIVES FOR AGRICULTURAL NONPOINT SOURCE POLLUTION CONTROL1

ABSTRACT. The limited success of command-and-control policies for reducing nonpoint source (NPS) water pollution mandated under the Federal Water Pollution Control Act (FWPCA) has prompted increased interest in economic incentive policies as an alternative control mechanism. A variety of measures have been proposed ranging from fairly minor modifications of existing policies to substantial revisions including watershed-wide polices that rely on economic incentives. While greater use of economic incentive policies, such as environmental bonds and point/nonpoint source trading is being advocated in the reauthorization of the CWA, the expected effects of individual proposals will be modest. The characteristics of NPS pollution, namely uncertainty and asymmetrical information, underscores that there is no single, ideal policy instrument for controlling the many types of agricultural NPS water pollution. Some of the usual incentive-based policies, such as effluent taxes, are not well suited to the task. Individual incentive policies proposed for the reauthorized CWA, such as pollution trading or deposit/refund systems, are not broadly applicable for heterogeneous pollution situations. Economic incentive policies may be appropriate in some cases, and command-and-control policies will be preferable in others and may in fact complement incentive policies.     

Cities vs. agriculture: A review of intersectoral water re-allocation

Water demand management, or making better use of the water we have — as opposed to augmenting supply — is increasingly proposed as a way of mitigating water-scarcity problems. Moving water away from agriculture to uses with higher economic value is one of the main measures widely seen as desirable. Sectoral "allocation stress" is seen as resulting from the disproportionate share, and inefficient use of water in the agricultural sector. This apparent misallocation is often attributed to the failure of government to allocate water rationally.
This paper revisits this commonly-accepted wisdom and examines the nature of urban water scarcity, showing the importance of economic and political factors, shaped by incentives to decision-makers, and sometimes compounded by climatic conditions. It shows that cities' growth is not generally constrained by competition with agriculture. In general, rather than using a narrow financial criterion, cities select options that go along the "path of least resistance," whereby economic, social and political costs are considered in conjunction. The question of allocation stress is thus reframed into an inquiry of how transfers effectively occur and can be made more effective.     

Integrated urban water management modelling under climate change scenarios

The concept of integrated water management is uncommon in urban areas, unless there is a shortage of supply and severe conflicts among the users competing for limited water resources. Further, problem of water management in urban areas will aggravate due to uncertain climatic events. Therefore, an Integrated Urban Water Management Model considering Climate Change (IUWMCC) has been presented which is suitable for optimum allocation of water from multiple sources to satisfy the demands of different users under different climate change scenarios. Effect of climate change has been incorporated in non-linear mathematical model of resource allocation in term of climate change factors. These factors have been developed using runoff responses corresponding to base and future scenario of climate. Future scenarios have been simulated using stochastic weather generator (LARS-WG) for different IPCC climate change scenarios i.e. A1B, A2 and B1. Further, application of model has been demonstrated for a realistic water supply system of Ajmer urban fringe (India). Developed model is capable in developing adaptation strategies for optimum water resources planning and utilization in urban areas under different climate change scenarios.     

Virtues of simple hydro-economic optimization: Baja California, Mexico

This paper uses simple hydro-economic optimization to investigate a wide range of regional water system management options for northern Baja California, Mexico. Hydro-economic optimization models, even with parsimonious model formulations, enable investigation of promising water management portfolios for supplying water to agricultural, environmental and urban users. CALVIN, a generalized hydro-economic model, is used in a case study of Baja California. This drought-prone region faces significant challenges to supply water to agriculture and its fast growing border cities. Water management portfolios include water markets, wastewater reuse, seawater desalination and infrastructure expansions. Water markets provide the flexibility to meet future urban demands; however conveyance capacity limits their use. Wastewater reuse and conveyance expansions are economically promising. At current costs desalination is currently uneconomical for Baja California compared to other alternatives. Even simple hydro-economic models suggest ways to increase efficiency of water management in water scarce areas, and provide an economic basis for evaluating long-term water management solutions.     

PERSPECTIVES FROM THREE YEARS EXPERIENCE OF REGIONAL WATER SERVICES IN THAMES WATER AUTHORITY1

ABSTRACT: Thames Water is one of ten regional Water Authorities established in 1974 to manage all water services in England and Wales. This paper looks back at water reorganization and reviews the achievements and highlights of the last three years. Constitutionally, Water authorities are a combination of a nationalized industry and local authority. This has advantages and disadvantages. Freedom of action, particularly in financial matters, is constrained by Government and official agencies. A severe pollution of the upper Thames and the drought of 1976 tested Thames Water's ability to deal with emergencies. Thames Water does not have an operational monopoly. Private Water Companies supply one third of the water demand and local authorities manage nearly all the sewers. But Thames Water's control over planning and investment ensures that the river basin is managed in a coordinated fashion. Tariff structure changes have led the Authority to bill all its consumers direct. The Thames is a small but intensively used river and vigilance is needed to maintain water quality. Thames Water is proud of the restoration of the tidal Thames from a typical grossly polluted metropolitan estuary to its present excellent condition. The British Government intends to establish a national water industry strategic planning organization but at the same time they affirm that there can be no departure from the principle of integrated river basin management.     

Water quality management worldwide

This article analyzes water quality on a global scale. An overview of the global water supply and demand situation is presented first, including regional and country information, as well as data on selected water use patterns. The focus then shifts to a discussion of water pollution, its various causes, impact, and remedies, with emphasis on legal and administrative solutions. Water pollution control expenditures and the resultant achievements are dealt with in the final third of the article, with projections to 1995. A wide variety of published sources was dovetailed to obtain a composite picture and most likely scenario; this was supplemented with primary interviews by the author conducted in North America, Western and Eastern Europe, and Oceania at the start of the 1980s.     

Criteria for equitable allocations: the heart of international water conflict

At the heart of most international water conflicts is the question of 'equitable' allocations, criteria for which are vague and often contradictory. However, application of an equitable water-sharing agreement along the volatile waterways of the globe is a prerequisite to hydropolitical stability. This article explores the question of equity measures for water-sharing agreements in the context of global hydropolitics and is divided into three parts. The Introduction provides a brief summary of the general principles of equitable allocations. The second part of the paper describes the practice of water resources allocations as exemplified in the Transboundary Freshwater Dispute Database - a computerized database of 149 treaties relating to international water resources compiled at Oregon State University; 49 of these treaties delineate specific water allocations. The third and fourth parts of the article contrast the principles and practice of water equity. It is noticeable how rarely the general principles are explicitly invoked, particularly the extreme principles of absolute sovereignty or absolute riverain integrity. Most treaties favor existing uses, and/or guarantees to downstream riparians. It is interesting that, while many international water negotiations begin with differing legal interpretations of rights, they often shift to a needs-based criteria for water allocations. Mostly, one is struck by the creativity of the negotiators in addressing specific language to each very specific local setting and concerns.     

Water–energy–greenhouse gas nexus of urban water systems: Review of concepts,state-of-art and methods

Water supply and wastewater services incur a large amount of energy and GHG emissions. It is therefore imperative to understand the link between water and energy as their availability and demand are closely interrelated. This paper presents a literature review and assessment of knowledge gaps related to water–energy–greenhouse gas (GHG) nexus studies in an urban context from an ‘energy for water’ perspective. The review comprehensively surveyed various studies undertaken in various regions of the world and focusing on individual or multiple subsystems of an urban water system. The paper also analyses the energy intensity of decentralized water systems and various water end-uses together with the major tools and models used. A major gap identified from this review is the lack of a holistic and systematic framework to capture the dynamics of multiple water–energy–GHG linkages in an integrated urban water system where centralized and decentralized water systems are combined to meet increased water demand. Other knowledge gaps identified are the absence of studies, peer reviewed papers, data and information on water–energy interactions while adopting a ‘fit for purpose water strategy’ for water supply. Finally, based on this review, we propose a water–energy nexus framework to investigate ‘fit-for-purpose’ water strategy.     

Bilateral Monopoly: A Market for Intercountry River Water Allocation

/ Collaboration of countries with an aim to share fresh surface water resources promises to generate potential joint benefits. Unfortunately, existing agreements lack the perspective and capacity to produce any real action in efficient cross-border water allocation. When that problem is encountered by any two adjacent countries claiming riparian rights to the same watercourse, this paper suggests that apossible solution to be examined is a water market. This market requires the relevant countries to engage in a bargaining process as described in the theory of bilateral monopoly. The bargaining process should determine both the water quantity to be transferred and the price to be paid. However, there has to be a fair allocation of the joint benefits resulting from the transfer for a sustainable price solution. As an empirical illustration, the paper examines the case of river Nestos shared by Bulgaria and Greece in the southern Balkans. A net revenue function quadratic in water is specified and estimated using scarce data on three agricultural crops in Greece. Sensitivity analysis on the size and distribution of the net benefits is also performed.KEY WORDS: Bilateral agreements; Water markets; Efficient allocation