Can economics help solve water disputes between nations? This study develops a Hydro-Economic Model (HEM) to analyze the economic value of water use in the Teesta River, aiming to facilitate a win-win solution for water sharing between India and Bangladesh. It represents a large range of economic values of water use during the dry season. The research assesses the economic values of fisheries, navigation, environment, and sediment transport, demonstrating that the total water use value for a dry season is USD 41.5 million for India and USD 77 million for Bangladesh. It shows that the benefit per unit volume of water for hydropower is the lowest among all types of water use. By revealing the economic trade-offs between different water uses, this study gives an idea about how to maximise the benefits from the river and how to mitigate the water sharing dispute and provides a framework for informed decision-making in transboundary water management.
This study on valuing water use in the Teesta River is aligned with Water Conservation Science and Engineering's focus on renewable energy sources, environmental engineering, and river engineering. The research's development of a hydro-economic model and its application to water resource management fit the journal.