An Optimal Governance Model of Land Use in Watershed: The Case of the Paldang Reservoir

Abstract

"This study introduces an optimal governance model of land use in watershed areas from a property rights perspective, focusing on the Paldang reservoir in Korea. The particular model is developed based on the premise that land use decisions, which differ in their attributes, can properly be aligned with governance mechanism in such a way that minimizes the governance costs. Given the intrinsic limitations of the measurement of governance costs, this study applies the discrete structural analysis for the alignment. This model developed in such a manner prescribes very diverse and specific governance structures, and as such, the relevance of this model to the real world situation is much greater. The diversification of policy measures also provides the residents in the watershed of Paldang reservoir with the opportunity to develop a series of environmentally sensitive and economically viable patterns for growth and diversity."