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Damming the Commons: An Empirical Analysis of International Cooperation and Conflict in Dam Location

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  • Sheila M. Olmstead
  • Hilary Sigman

Abstract

This paper examines whether countries consider the welfare of other nations when they make water development decisions. We estimate econometric models of the location of major dams around the world as a function of the degree of international sharing of rivers. We find that dams are more prevalent in areas of river basins some distance upstream of foreign countries, supporting the view that countries free ride in exploiting water resources. We find some evidence that international institutions, in particular multinational financing and international water management treaties, may mitigate this free riding.

Suggested Citation

  • Sheila M. Olmstead & Hilary Sigman, 2014. "Damming the Commons: An Empirical Analysis of International Cooperation and Conflict in Dam Location," NBER Working Papers 20389, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:20389
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    Cited by:

    1. Mark Zeitoun, 2015. "The relevance of international water law to later-developing upstream states," Water International, Taylor & Francis Journals, vol. 40(7), pages 949-968, November.
    2. Araujo, Rafael, 2024. "The value of tropical forests to hydropower," Energy Economics, Elsevier, vol. 129(C).
    3. Wu, Tao & Zhang, Ning & Gui, Lin & Wu, Wenjie, 2018. "Sustainable endogenous growth model of multiple regions: Reconciling OR and economic perspectives," European Journal of Operational Research, Elsevier, vol. 269(1), pages 218-226.
    4. Blakeslee, David & Dar, Aaditya & Fishman, Ram & Malik, Samreen & Pellegrina, Heitor S. & Bagavathinathan, Karan Singh, 2023. "Irrigation and the spatial pattern of local economic development in India," Journal of Development Economics, Elsevier, vol. 161(C).
    5. He, Xi, 2023. "Dams, cropland productivity, and economic development in China," China Economic Review, Elsevier, vol. 81(C).
    6. Yuyu Zeng & Harold Houba & Ariel Dinar & Miroslav Marence, 2016. "Damming Trans-boundary Rivers: A Welfare Analysis of Conflict and Cooperation," Tinbergen Institute Discussion Papers 16-090/II, Tinbergen Institute.
    7. Zaveri, Esha D. & Russ, Jason & Damania, Richard, 2017. "Drenched Fields and Parched Farms: Evidence along the Extensive and Intensive Margins," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258409, Agricultural and Applied Economics Association.

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    More about this item

    JEL classification:

    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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