In river systems, costly upstream pollution abatement creates downstream welfare gains. Absent adequate agreement on how to share the gains, upstream regions lack incentives to reduce pollution levels. We develop a model that makes explicit the impact of water quality on production benefits and...

In river systems, costly upstream pollution abatement creates downstream welfare gains. Absent adequate agreement on how to share the gains, upstream regions lack incentives to reduce pollution levels. We develop a model that makes explicit the impact of water quality on production benefits and...

This paper proposes that transboundary water governance needs to become an essential input to sustainable governance of protected natural reserves. The paper reviews the challenges and opportunities for such governance mechanisms, and identifies the factors behind successful practices....

Many water allocation agreements in transboundary river basins are inherently unstable. Due to stochastic river flow, agreements may be broken in case of drought. The objective of this paper is to analyse whether water allocation agreements can be self-enforcing. An agreement is modelled as the...

We study water use by two geographically proximate farmers in a particular region during a drought. The two farmers each have an endowment of time that can be used either to produce water or to steal water. The price of water is exogenously given. The goal of the two farmers is to maximize their...

We study water use by two geographically proximate farmers in a particular region during a drought. The two farmers each have an endowment of time that can be used either to produce water or to steal water. The price of water is exogenously given. The goal of the two farmers is to maximize their...

When directives rather than contracts determine rights to water flows, agents will substitute away from securing water rights by contract toward securing them through political directives. When those directives are legitimated by court rulings, they alter the rules that govern social...

This paper examines and compares mechanisms for finding Pareto optimal solutions to a many-to-many allocation problem. By explicitly introducing preference ordering and providing linear programming representations of the allocation problem, we study serial dictatorship and competitive matching...

Market power in water markets can be modeled as simultaneous quantity competition on a river structure and analyzed by applying social equilibrium. In an example of a duopoly water market, we argue that the lack of backward induction logic implies that the upstream supplier foregoes profitable...

Many water allocation agreements in transboundary river basins are inherently unstable. Due to stochastic river flow, agreements may be broken in case of drought. The objective of this paper is to analyze whether water allocation agreements can be self-enforcing, or sustainable. We do so using...