Cooperative water-sharing agreements between highlands and drylands: the Tambo-Santiago-Ica river basin in Peru

Inefficient water allocations in river basins limit economic benefits and feed conflicts. We study how institutional change triggered by investments and new technologies can improve water-use efficiency and mitigate conflicts. We develop a bargaining framework to analyse the Peruvian Tambo-Santiago-...

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Bibliographic Details
Published inInternational journal of water resources development Vol. 39; no. 5; pp. 796 - 818
Main Authors Gómez, Rosario, Weikard, Hans-Peter
Format Journal Article
LanguageEnglish
Published Guildford Routledge 03.09.2023
Taylor & Francis Ltd
Subjects
Agreements
Allocations
Arid lands
Arid zones
bargaining over water
conflict resolution
Conflicts
Cooperation
Crops
Economic benefits
Institutional change
Institutional investments
Investment
Investments
Livestock industry
New technology
Perú
Rainfed farming
river basin management
River basins
Rivers
Social inequality
Water
Water conflicts
Water use
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Summary:Inefficient water allocations in river basins limit economic benefits and feed conflicts. We study how institutional change triggered by investments and new technologies can improve water-use efficiency and mitigate conflicts. We develop a bargaining framework to analyse the Peruvian Tambo-Santiago-Ica river basin, which has important economic and social inequalities. We model agents' welfare changes when joint investments are implemented that are instrumental in overcoming conflict. While upstream communities are poor and rely on rainfed agriculture and cattle-raising, downstream agricultural producers are well-off and produce high-value crops. We find that joint investments can increase both regions' payoffs and gains from cooperation can be strengthened by side-payments.
ISSN:0790-0627
1360-0648
DOI:10.1080/07900627.2023.2165048