Cooperation in Transboundary Water Sharing with Issue Linkage: Game-Theoretical Case Study in the Volta Basin

This paper investigates issue linkage of water and energy in transboundary water sharing agreements and evaluates how such issue linkages can enhance the scope of cooperation between upstream and downstream countries. In a case study on transboundary water sharing between Burkina Faso and Ghana, the main upstream and downstream riparians in the Volta Basin, the paper evaluates both the scope and sustainability of such cooperation based on issue linkage. In the framework of a static Stackelberg game with numerical analysis, it is found that the interdependency of countries can lead to efficient and effective solutions regarding water sharing. In the cooperation phase, Ghana has the opportunity to increase its water consumption for agriculture, which is currently restricted, while Burkina Faso benefits from discounted hydropower as a compensation for restricting its water consumption. In such a case, the cooperation is mutually beneficial and stable. However, such interdependency may not be sustaina...