2015
DOI: 10.1017/s1355770x15000352
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Economic and hydrological impacts of the Grand Ethiopian Renaissance Dam on the Eastern Nile River Basin

Abstract: We propose an ‘allocate-and-trade’ institution to manage the eastern Nile River Basin for Ethiopia, Sudan and Egypt as the basin faces a new reality of the Grand Ethiopian Renaissance Dam (GERD). We find that a social planner could increase the region's economic welfare by assigning water rights to the riparian states. An alternative intrabasin water rights arrangement and trade could achieve more than 95 per cent of the welfare created by the social planner. GERD will change both the economic benefits and hyd… Show more

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Cited by 18 publications
(6 citation statements)
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“…Both issues have been the subject of difficult, ongoing negotiations between Egypt, Ethiopia, and Sudan. Previous studies of the GERD and HAD operations have sought to identify tradeoffs between different riparian objectives, and to understand the risks and rewards of basin-wide cooperation [12][13][14][15][16][17][18][19][20][21][22][23] . These efforts provide important insights that will inform multilateral agreements and create a structure for addressing the significantly different interests in the basin.…”
mentioning
confidence: 99%
“…Both issues have been the subject of difficult, ongoing negotiations between Egypt, Ethiopia, and Sudan. Previous studies of the GERD and HAD operations have sought to identify tradeoffs between different riparian objectives, and to understand the risks and rewards of basin-wide cooperation [12][13][14][15][16][17][18][19][20][21][22][23] . These efforts provide important insights that will inform multilateral agreements and create a structure for addressing the significantly different interests in the basin.…”
mentioning
confidence: 99%
“…An applied model that confirms this result was recently published by Dinar and Nigatu (2013), who modelled the possible gains from trade among three countries that share the Blue Nile. Their results show that such trade-agreements are not core-stable, indicating the fragility of cooperation in transboundary basins (see also Nigatu and Dinar, 2016). Summarizing, our results put recent research on river sharing in a broader perspective and demonstrate that the benefits of cooperative water use may not be reaped easily.…”
Section: Discussionmentioning
confidence: 57%
“…Basically, direct economic losses have been caused by agriculture (crops, fishery, forestry, animal husbandry), industry, commerce, and infrastructure (roads, railways, telecommunication, and tunnels) (Wang and Zhang, 2018). The direct economic loss has been measured as physical losses and income losses (Nigatu and Dinar, 2015). Physical losses are the physical value reductions in buildings, equipment, machinery, and all type of fixed or current assets which were affected by the dam break floods (Mo, et al, 2019).…”
Section: Impacts Of Dam Breaksmentioning
confidence: 99%