Open AccessRisk trading in trans‐boundary flood management: case study of the Dutch and German Rhine
Author(s) -
Chang C.T.,
Leentvaar J.
Publication year - 2008
Publication title -
journal of flood risk management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.049
H-Index - 36
ISSN - 1753-318X
DOI - 10.1111/j.1753-318x.2008.00015.x
Subject(s) - german , flood myth , externality , order (exchange) , upstream (networking) , downstream (manufacturing) , drainage basin , business , upstream and downstream (dna) , flood risk management , river management , finance , environmental resource management , environmental science , economics , geography , computer science , marketing , microeconomics , computer network , cartography , archaeology
This paper explores the potential of applying a newly developed risk trading system, the so‐called ‘tradeable flood mitigation permit’, to international flood management. Trading, aimed at complementing binding agreements or regulations, offers a new approach to transnational collaboration. A case study on the Dutch and German River Rhine is presented. The principle of internalising externalities using direct financial means is applied. The expected result is a higher level of river basin management in the upstream area, with financial resources coming from downstream. Specific institutional conditions, at both national and international levels, are identified in order to facilitate the establishment of the transactions.