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

37 Pages Posted: 25 Aug 2014 Last revised: 19 Mar 2023

See all articles by Sheila M. Olmstead

Sheila M. Olmstead

LBJ School of Public Affairs; Resources for the Future

Hilary Sigman

Rutgers University - Department of Economics; National Bureau of Economic Research (NBER)

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Date Written: August 2014

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

Olmstead, Sheila M. and Sigman, Hilary A., Damming the Commons: An Empirical Analysis of International Cooperation and Conflict in Dam Location (August 2014). NBER Working Paper No. w20389, Available at SSRN: https://ssrn.com/abstract=2486339

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Hilary A. Sigman

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