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Integrating Experimental Economics and Living Labs In Water Resource Management

Author

Listed:
  • Ebun Akinsete

    (ICRE8)

  • Alina Velias
  • Phoebe Koundouri
Abstract
The ultimate goal of water resource management is the efficient allocation of increasingly scarce water resources. One of the most crucial and often obscure aspects of water resource management pertains to the behavioural particularities of the societal relationship with water; how people value the resource, how utility companies price the resource, and how policy makers derive financial instruments to address social dilemmas associated with common pool resources and public goods. This chapter explores the use of two complimentary approaches to derive both quantitative and qualitative data within an iterative process to provide evidence-based decision support in the sustainable management of water resources. Within this integrated approach, participatory Living Labs use small focus group settings to collect qualitative data about key phenomena. This qualitative evidence provides foundation for theoretical models that produce testable suggestions for economic experiments. The economic and behavioural experiments focus on gathering quantitative data to test a prediction, subsequently raising further questions - such as heterogeneity of behaviour, causal relationships between factors - that can be explored deeper by living labs qualitative angle. The Living Labs and Experimental Economics approaches have an iterative relationship, examples of which will be highlighted in this article.

Suggested Citation

  • Ebun Akinsete & Alina Velias & Phoebe Koundouri, 2023. "Integrating Experimental Economics and Living Labs In Water Resource Management," DEOS Working Papers 2301, Athens University of Economics and Business.
    • Handle: RePEc:aue:wpaper:2301
    as

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    File URL: http://wpa.deos.aueb.gr/docs/2023.EXPERIMENTAL.ECONOMICS.LIVING.LABS.pdf
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    References listed on IDEAS

    as
    1. Juan-Camilo Cardenas, 2000. "How Do Groups Solve Local Commons Dilemmas? Lessons from Experimental Economics in the Field," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 2(3), pages 305-322, September.
    2. Halkos, George & Matsiori, Steriani, 2014. "Exploring social attitude and willingness to pay for water resources conservation," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 49(C), pages 54-62.
    3. Phoebe Koundouri & Ben Groom, 2002. "Groundwater Management: An Overview of Hydro-geology, Economic Values and Principles of Management," DEOS Working Papers 0203, Athens University of Economics and Business.
    4. Jonas Jägermeyr & Amandine Pastor & Hester Biemans & Dieter Gerten, 2017. "Reconciling irrigated food production with environmental flows for Sustainable Development Goals implementation," Nature Communications, Nature, vol. 8(1), pages 1-9, August.
    5. Laurence L. Delina, 2020. "A rural energy collaboratory: co-production in Thailand’s community energy experiments," Journal of Environmental Studies and Sciences, Springer;Association of Environmental Studies and Sciences, vol. 10(1), pages 83-90, March.
    6. Dieter Gerten & Vera Heck & Jonas Jägermeyr & Benjamin Leon Bodirsky & Ingo Fetzer & Mika Jalava & Matti Kummu & Wolfgang Lucht & Johan Rockström & Sibyll Schaphoff & Hans Joachim Schellnhuber, 2020. "Feeding ten billion people is possible within four terrestrial planetary boundaries," Nature Sustainability, Nature, vol. 3(3), pages 200-208, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Water; Living Labs; Experimental Economics; Stakeholder Engagement; Participatory Approaches;
    All these keywords.

    JEL classification:

    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies
    • Z1 - Other Special Topics - - Cultural Economics

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    This paper has been announced in the following NEP Reports:

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