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Social capital as an instrument for common pool resource management: a case study of irrigation management in Sri Lanka

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  • Takeshi Aida

Abstract

Although social capital is considered to be a key instrument for common pool resource (CPR) management, its effect among heterogenous players such as upstream and downstream farmers along an irrigation canal is not clear. Using a combination of lab-in-the-field experiments to measure social capital and household survey data in a unique natural experimental setting, this study shows that upstream farmers with higher trust toward the downstream farmers are more likely to be satisfied with their water usage. This finding is consistent with the hypothesis that upstream farmers with higher trust demand less water and leave more water in a canal because they expect reciprocal behaviour from downstream farmers. Since the incentive structures of irrigation management closely resemble those of the standard experiments to measure social capital, this finding also provides a unique case study of the real-world relevance of these experiments.

Suggested Citation

  • Takeshi Aida, 2019. "Social capital as an instrument for common pool resource management: a case study of irrigation management in Sri Lanka," Oxford Economic Papers, Oxford University Press, vol. 71(4), pages 952-978.
    • Handle: RePEc:oup:oxecpp:v:71:y:2019:i:4:p:952-978.
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    File URL: http://hdl.handle.net/10.1093/oep/gpy058
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    Cited by:

    1. Raja R Timilsina & Yutaka Kobayashi & Koji Kotani, 2022. "Non-kinship successors for resource sustainability," Working Papers SDES-2022-2, Kochi University of Technology, School of Economics and Management, revised Jan 2022.
    2. Aoyagi, Keitaro & Sawada, Yasuyuki & Shoji, Masahiro, 2022. "Irrigation infrastructure and trust: Evidence from natural and lab-in-the-field experiments in rural communities," World Development, Elsevier, vol. 156(C).
    3. Masahiro Shoji & Keitaro Aoyagi & Ryuji Kasahara & Yasuyuki Sawada, 2020. "Motives behind community participation: Evidence from natural and artefactual field experiments in Sri Lanka," Pacific Economic Review, Wiley Blackwell, vol. 25(5), pages 577-600, December.

    More about this item

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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