Natural resources extraction inevitably imposes environmental injuries including diversion of scarce water away from pressing local needs, disruption of fragile ecosystems, and longer-range and often irreparable harm. These fall most forcefully on the local populations at or near the extraction...

This paper analyzes resource partnerships and their influence on the environmental quality in a resource-rich country by introducing incomplete contracts, imperfect property rights protection, and a lack of valuation for the environment by the government in the South. Employing numerical...