Groundwater Institutions in the Face of Global Climate Change

Jinhua Zhao, Nathan Hendricks and Haoyang Li
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Haoyang Li: College of Economics and Management, Nanjing Agricultural University, Nanjing, China

Annual Review of Resource Economics, 2024, vol. 16, issue 1, 125-141

Abstract: We review the literature on the performance of groundwater institutions, including command-and-control (CAC) approaches, market-based institutions (MBIs), and voluntary approaches, and evaluate how they will perform as agriculture adapts to climate change. Both CAC approaches and MBIs lead to uneven distributional impacts on farmers, and voluntary approaches have not been successful in reducing water withdrawal on a large scale. A polycentric approach of regulation plus local management might perform well. Climate change will increase the irrigation demand for groundwater and demand flexible and properly scoped institutions that attend to local conditions.

Keywords: climate change; groundwater institutions; adaptation; irrigation (search for similar items in EconPapers)
JEL-codes: Q15 Q25 Q54 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1146/annurev-resource-101623-100909

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