From decentralized autonomy to central governance: case of Murray-Darling River Basin and its implication for the governance of Tai Lake Basin

Since the Murray-Darling River Basin and Tai Lake Basin share much similarity in terms of their economic and political background, this paper presents a comparative research on proposing an effective solution to the interjurisdictional water pollution. With the study of the transition of the governance structure for Murray-Darling River Basin, a clear trajectory from decentralized autonomy to central governance could be found. To clarify the plausible distinctions between two governance modes, a simple model was established, observing their different results in solving the interjurisdictional water pollution. Theoretical analysis confirms the centralized model could control the interjurisdictional pollution by internalization of externalities. It is argued that the externalities in the dimension of space and time are the key elements for the interjurisdictional environment issue. Therefore, centralized governance should be chosen as the solution of Tai Lake Basin.