JBS Vol 06. Num 1-2. 2004 - A POLICY MEASURE FOR OPTIMAL WATER RESOURCE UTILIZATION AND ALLEVIATION OF SOCIO-ENVIRONMENTAL PROBLEMS IN THE TEESTA RIVER BASIN

The water of many international rivers are not shared following formal intergovernmental agreement, ensuring
highest benefit for the region as a whole because bilateral agreements often do not provide equitable and optimum
economic benefit for both parties. This paper focuses on a bilateral optimum water-sharing model of international
river water, citing the Teesta River which runs through India and Bangladesh, as a specific case. This input-output
model, which determines the optimal share and its optimal use for economic activity, maximizes the welfare
function, which is subject to bilateral trade and business, fixed water allocation agreement, etc., under a cooperative
scenario. If the agreement can satisfy the condition for maximum joint benefit, the parties would work together to
maintain the the functional integrity of river’s eco-system and environmental balance of the Teesta basin area.
Moreover, this policy prescription would help to endure treaties of bilateral water sharing and trade between the two
countries.