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Workshop with partners on September 13, 2018

Published July 11th, 2018

The Chair will organize the next workshop with partners on Thursday, September 13, 2018 from 10am to 12pm at AFG, 41 rue de la Bienfaisance 75008 Paris (room Ville l’Evêque).
Topics of the workshop is the water resource management.

Program details:

– Arnaud Reynaud (INRA and TSE) will present his research work: « Cooperation and Conflict in International River Basins: Findings From an Empirical Analysis »

Résumé: This paper studies the effect of water stress on cooperation and conflict between countries sharing international river basins. We use weather measures as well as novel data on prominent indices of water stress for the exhaustive set of international river basins in the world over the 1997-2007 period. In light of the results on climate and violence found in the literature, one may expect that water stress increases conflict and decreases cooperation. In light of the literature on inter-state conflicts and cooperation, one may expect cooperation rather than conflict between dependent countries. Our main results tend to favor the latter expectation and suggest that more water stress is associated with more cooperation. We find that increases in temperature, temperature amplitude or in the water stress indices are associated with more cooperation within country pair-basins units. However, we fail to find a significant effect of any weather or water stress index on conflict. We go further and show that the average estimates hide some heterogeneity. The effect of temperature is the largest in Africa and is also large in Latin America. The effect of precipitation is very heterogenous and depends on local conditions.

– Valentin Jouvenot (U de Genève) will present his research work: « Does Water Management Improve Corporate Value? »
Résumé: In this research I use the occurrence of droughts as a source of exogenous variation to examine whether water supply frictions affect corporate valuation and operating performance. I find that firms with better water management exhibit higher return on assets during abnormal temperature shocks and that investors incorporate water management into valuations. The outperformance of firms with better water management during droughts results from lower operating expenses. Overall, the evidence supports the hypothesis that good water management provides competitive advantage for firms.