ANNOUNCEMENTS
Water scarcity and water pollution pose significant challenges to ecosystems and economic stability globally. The agricultural sector and industrial sector are the largest and second largest consumers of water respectively. Amidst the issues of water scarcity, market mechanisms like tradable water permits are looked upon as a significant solution in dealing with the issues of water resource management and allocation. This study explores the concept of tradable water permits as a means of managing water resources between the two conflicting sectors, i.e. the agricultural and the industrial sectors. The study develops a sequential game theoretic model to analyze the negotiation process between these sectors, focusing on the allocation and pricing of water permits. The findings of this study suggest that tradable water permits can provide a viable solution for the conflicts arising from water scarcity, leading to a more equitable and efficient distribution of water resources. The implementation of such a system requires careful consideration of the economic, environmental, and social impacts, as well as robust regulatory frameworks to ensure its success.
