2.5. Transboundary water resource management
Empirical analyses of water pollution spill overs in transboundary
settings have found that countries, and even states and counties, free ride
in water quality. Pollution levels are higher near international
borders (Bernauer and Kuhn, 2010; Sigman, 2002) as well as near
subnational borders within countries (Lipscomb and Mobarak, 2008;
Sigman, 2004). Water pollution emissions by U.S. pulp and paper
plants appear to be higher when out-of-state residents receive a greater
share of pollution control benefits (Gray and Shadbegian, 2004). Water
pollution spill overs may also intensify as the number of political jurisdictions
managing the same river increases (Lipscomb and Mobarak,
2008). There is also substantial anecdotal evidence that political jurisdictions
free-ride in water quantity or allocation, in addition to water
quality, and there has been some modeling of this phenomenon in the
economic literature (Becker and Easter, 1999; Gisser and Sanchez,
1980; Loehman and Dinar, 1994; Rogers, 1969). However, there is no
empirical evidence in the literature of free-riding in transboundary
water allocation.
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