|State A (upstream) wishes to develop its hydropower potential by constructing a series of dams in the upper reaches of an international river it shares with its downstream neighbour, State B. Out of all the dam sites along the course of the river, the proposed sites in the upper reaches of State A are considered the most efficient and effective for maximising the benefits of hydropower while minimising the impact. State B claims that such uses are inequitable as a number of downstream communities will be affected by the change in use of the river. These communities rely on the river for their basic human needs, including drinking water and significant fisheries. However, the communities in state B have alternative sources of domestic groundwater that are situated exclusively within the territory of state B and are easily accessible. In such a scenario it might be argued that the development of hydropower in State A takes precedence as the vital human needs can be satisfied from an alternative source.
Download Fact Sheets
Theories of Resource Allocation