Efficiency and Equity in the Distribution of Renewable Resources: Water Allocation in the Jordan River Watershed

Virginia Environmental Law Journal, Vol. 26, No. 4, p. 655, 2008

37 Pages Posted: 21 Dec 2009  

Ahmad Slaibi

Cornell University - School of Applied Economics and Management; The World Bank

Ian Silverbrand

Cornell University - Law School

Date Written: December 18, 2009

Abstract

Previous work on shared renewable resource distribution has generally focused on unilateral and bilateral policy approaches or a tradable market system. Neither approach guarantees efficiency and equity simultaneously. We propose an integrated law and economic policy-based management plan that divides property rights into rights to use and rights from which to earn income. Both rights are determined based upon multilateral negotiations and the environmental sustainability of the ecosystem. Rights to use should be domestically utilized by the parties that share the resource and the income rights should be regularly auctioned. This guarantees shareholders some access to the resource and generously compensates them for any amount auctioned, while at the same time allocating a large portion of the resource to its highest marginal benefit. The system is tested on the River Jordan Basin, and we conclude that, if applied, water can be allocated more efficiently and equitably than under the current water regimes while at the same time reduce political and military tension in the region.

Keywords: Water Distribution, Water Price, Jordan River

Suggested Citation

Slaibi, Ahmad and Silverbrand, Ian, Efficiency and Equity in the Distribution of Renewable Resources: Water Allocation in the Jordan River Watershed (December 18, 2009). Virginia Environmental Law Journal, Vol. 26, No. 4, p. 655, 2008 . Available at SSRN: https://ssrn.com/abstract=1525618 or http://dx.doi.org/10.2139/ssrn.1525618

Ahmad Slaibi (Contact Author)

Cornell University - School of Applied Economics and Management ( email )

248 Warren Hall
Ithaca, NY 14853
United States

HOME PAGE: http://www.people.cornell.edu/pages/aas54/

The World Bank ( email )

Washington, DC 20433
United States

Ian J. Silverbrand

Cornell University - Law School ( email )

Myron Taylor Hall
Cornell University
Ithaca, NY 14853-4901
United States

Paper statistics

Downloads
83
Rank
248,349
Abstract Views
551