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

Rosario Gómez*, Hans Peter Weikard

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

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.

Original languageEnglish
Pages (from-to)796-818
Number of pages23
JournalInternational Journal of Water Resources Development
Volume39
Issue number5
Early online date14 Feb 2023
DOIs
Publication statusPublished - 3 Sept 2023

Keywords

  • bargaining over water
  • conflict resolution
  • Perú
  • river basin management
  • Water conflicts

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