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Governing Access to Essential Resources$
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Katharina Pistor and Olivier De Schutter

Print publication date: 2015

Print ISBN-13: 9780231172783

Published to Columbia Scholarship Online: May 2016

DOI: 10.7312/columbia/9780231172783.001.0001

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Solving Transborder Water Issues in Changing Climate Scenarios of South Asia

Solving Transborder Water Issues in Changing Climate Scenarios of South Asia

A Theoretical Illustration Using a Principal-Agent Bargaining Approach

Chapter:
(p.288) Chapter 14 Solving Transborder Water Issues in Changing Climate Scenarios of South Asia
Source:
Governing Access to Essential Resources
Author(s):

Nilhari Neupane

Publisher:
Columbia University Press
DOI:10.7312/columbia/9780231172783.003.0014

Neupane looks at India, which is situated downstream on the Ganges basin, and how it uses its regional power to gain greater access to water (for irrigation and electricity) at the expense of Nepal, its upstream-, and Bangladesh, its downstream- neighbors. He employs a principal-agent model to show that cooperation can produce superior outcomes for all concerned as compared to the single-minded exploitation of hegemony. According to the model, a contractual solution providing for sharing is the optimal outcome. Even as reality deviates from this outcome, the model offers some hope that contracting mechanisms can be employed to advance the normative goals associated with Voice and Reflexivity.

Keywords:   international water governance, bargaining problems, Principal-Agent Model

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