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1 Bajaj, A.; Singh, S. P.; Nayak, D. 2021. Impact of water markets on equity and efficiency in irrigation water use: a systematic review and meta-analysis. Agricultural Water Management, 259:107182. (Online first) [doi: https://doi.org/10.1016/j.agwat.2021.107182]
Water market ; Irrigation water ; Water use efficiency ; Equity ; Water productivity ; Water scarcity ; Water rights ; Economic development ; Infrastructure ; Institutions ; Governance ; Policies ; Cropping patterns / Australia / Chile / USA / Spain / Bangladesh / India / Pakistan / China / South Africa
(Location: IWMI HQ Call no: e-copy only Record No: H050713)
(2.77 MB)
The water markets as an institution for water demand and supply management has been extensively documented both theoretically and empirically. The application of successful water market models of developed economies in developing economies has also gained much attention of the researchers and policy makers globally. However, the studies in different regions have stated a number of arguments both in favour and against the water markets as an economic instrument for water use efficiency and equity, particularly in the irrigation sector. The present study conducts a systematic review and meta-analysis for identifying different ways in which the water markets impact irrigation water-use in different regions and analyse the various factors of water markets that impact irrigation water-use efficiency and equity. The results show that all the studies that confirm the trade-off between water-use efficiency and equity are based on markets with inter-sectoral trade, specifically formal markets. Only about 27% of the reviewed studies found that both the objectives of equity and efficiency can be achieved simultaneously with water trading. The impact of water markets on efficiency depends on five factors viz. soft infrastructure/institutional governance, hard infrastructure, physical water scarcity, reliability/Trust in the water market system, and social acceptance. The difference in the very nature of the buyers and sellers in the formal and informal markets largely explains the difference in the functioning of the respective markets. Thus, this study highlights the range of factors behind the heterogeneity in the results of the reviewed studies on the given theme that can support the policy makers in framing the customized water trading policies.
2 Bajaj, A.; Singh, S. P.; Nayak, D. 2023. Are farmers willing to pay for groundwater irrigation? Insights from informal groundwater markets in Western Uttar Pradesh, India. Agricultural Water Management, 288:108458. [doi: https://doi.org/10.1016/j.agwat.2023.108458]
Groundwater irrigation ; Groundwater management ; Water markets ; Farmers ; Willingness to pay ; Contingent valuation ; Models ; Households ; Irrigation water ; Water scarcity ; Surface water ; Socioeconomic aspects ; Water management ; Water supply ; Economic value ; Policies / India / Uttar Pradesh
(Location: IWMI HQ Call no: e-copy only Record No: H052264)
https://www.sciencedirect.com/science/article/pii/S0378377423003232/pdfft?md5=3ae80aefe6ae651034635e1f1229ec62&pid=1-s2.0-S0378377423003232-main.pdf
https://vlibrary.iwmi.org/pdf/H052264.pdf
https://vlibrary.iwmi.org/pdf/H052264.pdf
(2.03 MB) (2.03 MB)
The unregulated use of groundwater for irrigation has led to declining water tables since the extraction rate is more than its recharge. As informal groundwater trading for irrigation has been prevalent in Western Uttar Pradesh, India, for a long time, there is a potential of introducing an organised groundwater irrigation market. Creating a hypothetical organized groundwater market, by following the contingent valuation approach, the present study evaluates the farmers’ willingness to pay (WTP) for groundwater irrigation and the factors determining the same. By collecting primary data from 300 farm households through an interview schedule, the study follows an iterative bidding method for eliciting the farmers’ WTP for the direct use-value of groundwater. The Heckman two-step model is used to estimate the average WTP and its determinants in order to mitigate the impact of sample selectivity bias. The results show that most of the farmers (86%) are willing to contribute to irrigation water reforms in the form of organised water market. The estimated value of WTP for groundwater irrigation is found to be INR 39.30 per hour in the case of 7.5 horsepower tube-well. Moreover, factors like the administrative block, education, social group, land size, primary crop, perception on water scarcity, and perception on water meters significantly impact the maximum WTP for groundwater irrigation. Interestingly, the WTP of tube-well owners who are not involved in groundwater trading is found to be 23% lower than that of groundwater buyers who are primarily marginal and small land holders, implying that even resource-poor farmers are willing to pay higher prices, if reliable groundwater irrigation is ensured.
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