New publication: Liquid Assets- An Economic Approach for Water Management and Conflict Resolution in the Middle East and Beyond

Liquid Assets shows that the common view of water as an inevitable cause of future wars is neither rational nor necessary. Typically, two or more parties with claim to the same water sources are thought to play a zero-sum game with each side placing a high emotional and political value over the ownership of the water. However, Franklin Fisher and his coauthors demonstrate that when disputes in ownership are expressed as disputes about money values, in most cases, the benefits of ownership will be surprisingly small. By assigning an economic value to water and treating water as a tradable resource, parties see that the gains from cooperation exceed the costs resulting from the change in ownership. A zero-sum game becomes a win-win situation.
"Liquid Assets" presents a comprehensive and careful way to think about water conflicts. It shows clearly where economics can be useful to the profoundly political aspects of water conflicts, but it is not authoritarian about what should be done. It is, rather, illustrative of what could be done, and why it might make sense to do it that way. I can see the book playing a significant role if and when Israel, Palestine, and Jordan are able to move forward with a plan that will bring peace and harmony." --Daniel W. Bromley, University of Wisconsin, Madison