Solving water conflicts: Game theoretic approaches to water allocation in Peru

Water scarcity is a global challenge which threatens economic development, environmental stability and social cohesion. Additionally, rising pollution affects water scarcity, limiting freshwater for competing users. The overarching objective of the thesis is to contribute analyses and solutions to real-world water conflicts.  It investigates (i) how scarce water can be allocated based on rules, particularly when water sources are interdependent, (ii) how joint infrastructure investments can mitigate scarcity and conflicts, (iii) how water pollution can be mitigated using side payments, and (iv) how water quality can be improved through stringent environmental policies. The study focuses on Peru, where water stress, water pollution and related conflicts are intensifying under conditions of weak governance.  
This thesis integrates game theory and institutional economics. The models developed demonstrate that credible institutions and enforcement are critical to align incentives leading to efficient water allocation and controlling water pollution.  Effective enforcement can facilitate the achievement of economic, social and environmental policy goals by mitigating conflicts and enhancing cooperation.

Zoila del Rosario Gómez Gamarra

The candidate of the defence titled "Solving water conflicts: Game theoretic approaches to water allocation in Peru".