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Hydro-economic models (HEMs) are powerful tools to analyze water scarcity, drought, and water management problems. Though several HEMs reviews have been conducted in the recent past, none of them focused on the management of transboundary river water disputes, benefit sharing, or trade-offs. Therefore, this review explored how HEMs can suggest mitigating water sharing disputes on transboundary rivers. Though more than 300 HEMs have been developed worldwide, very few focused on transboundary river water disputes. After vigorous screening at Google Scholar, only 25 articles were found which focused on transboundary river water disputes. Most HEMs that were reviewed proposed to share benefits such as sharing hydropower produced from the river, reallocating water from low-value agriculture to high-value agriculture or managed operation of the dam, or other monetary compensation. But no study assessed non-water sector benefit sharing such as trade or transit. Most HEMs focused on irrigation and hydropower which are benefits from the river and very few studies focused on fisheries, environment, and wetland which are benefits to the river. International rivers can act as a catalyst among the riparian countries and promote cooperation in trade, commerce, exchange of technologies, and other fields. HEMs can play an important role in this regard. It is to be mentioned that HEMs cannot resolve water conflicts in a shared basin, they only can propose for the options of solution.

Review of hydro-economic models (HEMs) which focus on transboundary river water sharing disputes