A recent study of global transboundary river basins identifies those
“at risk” due to the combination of: (1) expected future increases in hydrological
variability due to climate change; and (2) weakness (or absence)
of treaties and other institutions to manage water allocation
(DeStefano et al., 2010). The 16 “at risk” basins are in Africa, East Asia,
Eastern Europe and Central Asia, and Central and South America, with
the majority (10) in Africa. This and other studies on the topic were
not written from an economic perspective, and they do not model any
evolution in river management institutions due to increased scarcity.
However, economic theory would suggest that if resources dwindle or
become less predictable over time, and they are essentially open access,
the incentive to over-exploit them will increase, rather than decrease.
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