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Bargaining And Devolution In The Upper Guadiana Basin, Carmen Marchiori, Susan Stratton Sayre, Leo K. Simon
Bargaining And Devolution In The Upper Guadiana Basin, Carmen Marchiori, Susan Stratton Sayre, Leo K. Simon
Economics: Faculty Publications
Increasingly, central governments approach contentious natural resource allocation problems by devolving partial decision-making responsibility to local stakeholders. This paper conceptualizes devolution as a three-stage process and uses a simulation model calibrated to real-world conditions to analyze devolution in Spain’s Upper Guadiana Basin. The Spanish national government has proposed spending over a billion euros to reverse a 30 year decline in groundwater levels. We investigate how the government can most effectively allocate this money to improve water levels by utilizing its power to set the structure of a local negotiation process. Using a numerical Nash model of local bargaining, we find …