An evaluation of groundwater institutions in India: a property rights perspective

Jayanath Ananda () and Mohamed Aheeyar ()
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Jayanath Ananda: Central Queensland University
Mohamed Aheeyar: International Water Management Institute

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2020, vol. 22, issue 6, No 38, 5749 pages

Abstract: Abstract Groundwater governance has become an intractable policy issue, which has many implications for the living standards and well-being of millions of rural poor in South Asia. Groundwater governance is complex as it is influenced by various hydrogeological, sociopolitical and socioeconomic factors. Unregulated groundwater extraction rates in South Asia have depleted the aquifers causing a raft of socioeconomic, environmental and human health problems. This paper analyzes de facto rights in groundwater markets and other emerging ‘groundwater-sharing institutional arrangements’ in India. Using a multi-dimensional property rights model, the paper decomposes de facto groundwater rights while drawing insights and broad policy lessons. The findings indicate that there is much scope for enhancing the ‘small group groundwater sharing’ governed by social regulatory measures. Moreover, distortionary subsidies for agriculture in general and groundwater development, in particular, have had an adverse impact of the resource use and merit further attention.

Keywords: Governance; Markets; Water sharing; Social regulation; Transaction costs; South Asia (search for similar items in EconPapers)
JEL-codes: D23 D62 H41 Q15 Q22 Q25 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s10668-019-00448-8

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