Edited by Claudia Pahl-Wostl, Anik Bhaduri and Joyeeta Gupta
Chapter 7: How trade policies can help to achieve water security in a transboundary setting
Water security is connected not only with the concept of sustainable development but has also been defined in the context of conflict prevention based on geopolitical concerns over water availability and its implications for human security. Today there is an increased likelihood of transboundary water conflict which may put the water security of a region at greater risk. In the framework of a basic Heckscher–Ohlin trade model, the chapter examines how water security in a transboundary setting can be achieved through trade policies. The chapter explores the linkage of water allocation to trade of commodities and shows how changes in the trade policies of riparian countries can influence the water resource allocation between them and affect the welfare and income distribution of the countries under free trade and trade restrictions.
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