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Impact of groundwater markets in peninsular India on water use efficiency: A Data Envelopment Analysis approach

Author

Listed:
  • Manjunatha, A.V.
  • Speelman, Stijn
  • Van Huylenbroeck, Guido
  • Chandrakanth, Mysore G.
Abstract
In the hard rock areas of India, overdraft of groundwater has led to negative externalities, increases costs of groundwater irrigation and causes welfare losses. Groundwater markets are slowly emerging as niche markets to improve water distribution and to mitigate water scarcity by stimulating more efficient use. A sample containing water sellers, water buyers and control farmers was collected to test the hypothesis of more efficient water use. The effect of groundwater market introduction on the efficiency of water use is studied using Data Envelopment Analysis (DEA). The calculated subvector efficiencies for water use show that water buyers use water most efficient. But also water sellers are more efficient in their water use than the control group. Differences in average efficiency between these groups are shown to be significant using a Kruskal-Wallis test. This finding confirms that groundwater markets can add to improving efficiency of water use. Moreover results indicate that the existence of groundwater markets offers access to groundwater to resource poor farmers, the opportunity to benefit from the improved agricultural productivity generated by irrigation. In the light of proposed changes in groundwater legislation and policies for improving water use efficiency these empirical results provide crucial information to policy makers.

Suggested Citation

  • Manjunatha, A.V. & Speelman, Stijn & Van Huylenbroeck, Guido & Chandrakanth, Mysore G., 2009. "Impact of groundwater markets in peninsular India on water use efficiency: A Data Envelopment Analysis approach," 2009 Conference, August 16-22, 2009, Beijing, China 50624, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae09:50624
    DOI: 10.22004/ag.econ.50624
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    Cited by:

    1. Madhavi Marwah, 2018. "Mapping institutions for assessing groundwater scenario in West Bengal, India," Working Papers 411, Institute for Social and Economic Change, Bangalore.
    2. 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.
    3. 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).
    4. de Fraiture, Charlotte & Giordano, Meredith, 2014. "Small private irrigation: A thriving but overlooked sector," Agricultural Water Management, Elsevier, vol. 131(C), pages 167-174.
    5. Lijuan Zhang & Jinxia Wang & Guangsheng Zhang & Qiuqiong Huang, 2016. "Impact of the methods of groundwater access on irrigation and crop yield in the North China Plain," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 8(4), pages 613-633, November.
    6. 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).
    7. Sidhu, Balsher Singh & Kandlikar, Milind & Ramankutty, Navin, 2020. "Power tariffs for groundwater irrigation in India: A comparative analysis of the environmental, equity, and economic tradeoffs," World Development, Elsevier, vol. 128(C).
    8. Jayanath Ananda & Mohamed Aheeyar, 2020. "An evaluation of groundwater institutions in India: a property rights perspective," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(6), pages 5731-5749, August.
    9. 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.
    10. Sobia Asghar & Nophea Sasaki & Damien Jourdain & Takuji W. Tsusaka, 2018. "Levels of Technical, Allocative, and Groundwater Use Efficiency and the Factors Affecting the Allocative Efficiency of Wheat Farmers in Pakistan," Sustainability, MDPI, vol. 10(5), pages 1-22, May.
    11. Watto, Muhammad Arif & Mugera, Amin William, 2013. "Measuring Groundwater Irrigation Efficiency in Pakistan: A DEA Approach Using the Sub-vector and Slack-based Models," Working Papers 144943, University of Western Australia, School of Agricultural and Resource Economics.

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