IDEAS home Printed from https://ideas.repec.org/a/cup/endeec/v10y2005i06p801-819_00.html
   My bibliography  Save this article

Efficiency and equity in groundwater markets: the case of Madhya Pradesh, India

Author

Listed:
  • KAJISA, KEI
  • SAKURAI, TAKESHI

Abstract

This paper examines efficiency and equity in groundwater markets with special attention to output sharing contracts and to the bargaining relationships between sellers and buyers, using household level data from Madhya Pradesh, India. Regression results find no significant inefficiency on farms managed by output sharing buyers, presumably because optimal input intensities are achieved through effective monitoring and contract adherence mechanisms embedded in long-term and intensive personal relationships between sellers and buyers. As for equity, the finding is that, while output sharing buyers pay higher water prices, the rate of premiums is merely 5 percentage points higher than the informal interest rate that they would have had to carry under other types of groundwater contracts. The results also show that buyers who have access to alternative water sellers pay lower water prices. These findings indicate that if the imperfection of credit and contingent markets in rural areas are taken into account, informal groundwater markets work fairly well in agrarian communities if monitoring and contract adherence mechanisms are embedded and a sufficient number of potential sellers are available.

Suggested Citation

  • Kajisa, Kei & Sakurai, Takeshi, 2005. "Efficiency and equity in groundwater markets: the case of Madhya Pradesh, India," Environment and Development Economics, Cambridge University Press, vol. 10(6), pages 801-819, December.
    • Handle: RePEc:cup:endeec:v:10:y:2005:i:06:p:801-819_00
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S1355770X05002536/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Michler, Jeffrey D. & Wu, Steven Y., 2020. "Governance and contract choice: Theory and evidence from groundwater irrigation markets," Journal of Economic Behavior & Organization, Elsevier, vol. 180(C), pages 129-147.
    2. Mottaleb, Khondoker A. & Krupnik, Timothy J. & Keil, Alwin & Erenstein, Olaf, 2019. "Understanding clients, providers and the institutional dimensions of irrigation services in developing countries: A study of water markets in Bangladesh," Agricultural Water Management, Elsevier, vol. 222(C), pages 242-253.
    3. Michler, Jeffrey D. & Wu, Steven, 2013. "Contracting for Groundwater Irrigation:A Principal-Agent Based Approach to Determining Contract Effectiveness," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149437, Agricultural and Applied Economics Association.
    4. Jitu Tamuli & Mrinal Kanti Dutta, 2015. "What Determines Farmers’ Decision to Buy Irrigation Water in Water Abundant Regions? A Study of Groundwater Markets in Assam in Eastern India," Working Papers 2015.03, International Network for Economic Research - INFER.
    5. Michler, Jeffrey D. & Balagtas, Joseph Valdes, 2013. "The Determinants of Rice Storage: Evidence from Rice Farmers in Bangladesh," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150267, Agricultural and Applied Economics Association.
    6. Achiransu Acharyya & Madhusudan Ghosh & Rabindra N. Bhattacharya, 2018. "Groundwater Market in West Bengal, India: Does it Display Monopoly Power?," Studies in Microeconomics, , vol. 6(1-2), pages 105-129, June.
    7. Yashodha, Y., 2018. "Bargaining and Contract Choice: Evidence from Informal Groundwater Contracts," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276035, International Association of Agricultural Economists.
    8. Bajaj, Akshi & Singh, S.P. & Nayak, Diptimayee, 2022. "Impact of water markets on equity and efficiency in irrigation water use: A systematic review and meta-analysis," Agricultural Water Management, Elsevier, vol. 259(C).
    9. Manjunatha, A.V. & Anik, Asif Reza & Speelman, S. & Nuppenau, E.A., 2014. "Farmers’ Participation in Informal Groundwater Market in Hard Rock Areas of Peninsular India," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 27(Conferenc).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:endeec:v:10:y:2005:i:06:p:801-819_00. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/ede .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.