INTERNATIONAL MARKETS FOR WATER AND THE POTENTIAL FOR REGIONAL COOPERATION - ECONOMIC AND POLITICAL PERSPECTIVES IN THE WESTERN MIDDLE-EAST

This article evaluates the idea of trading hydrotechnology for interbasin water transfers among neighboring nations. Following the introduction is a conceptual framework for efficient allocation of water and hydrotechnology between two potential cooperators which provides the basis for trade of water against water-saving technology. Then we apply a game-theory model to a potential water market in the western Middle East, involving Egypt, Israel, the West Bank, and the Gaza Strip. The model allocates potential benefits from trade between the cooperations. The results are then presented and discussed under several regional political scenarios in which regional cooperation may be enhanced or diminished. -from Authors