IDEAS home Printed from https://ideas.repec.org/a/eee/wdevel/v40y2012i12p2537-2551.html
   My bibliography  Save this article

Equity-Efficiency Trade-Offs in Irrigation Water Sharing: Evidence from a Field Lab in Rural Tanzania

Author

Listed:
  • D’Exelle, Ben
  • Lecoutere, Els
  • Van Campenhout, Bjorn

Abstract

This article studies how users of scarce common water resources deal with equity-efficiency trade-offs. For this purpose, we conduct a field lab experiment in Tanzania that simulates the distribution of irrigation water between upstream and downstream users. We find a strong preference for equal sharing even if this comes with large foregone efficiency gains. However, we also find indications that efficiency considerations are taken into account. (Selfish) deviations from equal sharing are more likely implemented when they are efficiency-enhancing. Finally, we detect a tendency to alternate between altruistic and selfish sharing, which reconciles equity and efficiency considerations.

Suggested Citation

  • D’Exelle, Ben & Lecoutere, Els & Van Campenhout, Bjorn, 2012. "Equity-Efficiency Trade-Offs in Irrigation Water Sharing: Evidence from a Field Lab in Rural Tanzania," World Development, Elsevier, vol. 40(12), pages 2537-2551.
  • Handle: RePEc:eee:wdevel:v:40:y:2012:i:12:p:2537-2551
    DOI: 10.1016/j.worlddev.2012.05.026
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305750X12001489
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.worlddev.2012.05.026?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Dirk Engelmann & Martin Strobel, 2004. "Inequality Aversion, Efficiency, and Maximin Preferences in Simple Distribution Experiments," American Economic Review, American Economic Association, vol. 94(4), pages 857-869, September.
    2. Gary Charness & Matthew Rabin, 2002. "Understanding Social Preferences with Simple Tests," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(3), pages 817-869.
    3. Meinzen-Dick, Ruth & Raju, K. V. & Gulati, Ashok, 2002. "What Affects Organization and Collective Action for Managing Resources? Evidence from Canal Irrigation Systems in India," World Development, Elsevier, vol. 30(4), pages 649-666, April.
    4. Ernst Fehr & Klaus M. Schmidt, 1999. "A Theory of Fairness, Competition, and Cooperation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(3), pages 817-868.
    5. Glenn W. Harrison & John A. List, 2004. "Field Experiments," Journal of Economic Literature, American Economic Association, vol. 42(4), pages 1009-1055, December.
    6. Jeffrey M. Wooldridge, 2005. "Simple solutions to the initial conditions problem in dynamic, nonlinear panel data models with unobserved heterogeneity," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(1), pages 39-54, January.
    7. Cardenas, Juan Camilo & Rodriguez, Luz Angela & Johnson, Nancy, 2011. "Collective action for watershed management: field experiments in Colombia and Kenya," Environment and Development Economics, Cambridge University Press, vol. 16(3), pages 275-303, June.
    8. Gorton, Matthew & Sauer, Johannes & Peshevski, Mile & Bosev, Dane & Shekerinov, Darko & Quarrie, Steve, 2009. "Water Communities in the Republic of Macedonia: An Empirical Analysis of Membership Satisfaction and Payment Behavior," World Development, Elsevier, vol. 37(12), pages 1951-1963, December.
    9. Henrich, Joseph & Boyd, Robert & Bowles, Samuel & Camerer, Colin & Fehr, Ernst & Gintis, Herbert (ed.), 2004. "Foundations of Human Sociality: Economic Experiments and Ethnographic Evidence from Fifteen Small-Scale Societies," OUP Catalogue, Oxford University Press, number 9780199262052, Decembrie.
    10. Baland, Jean-Marie & Platteau, Jean-Philippe, 1998. "Wealth Inequality and Efficiency in the Commons, Part II: The Regulated Case," Oxford Economic Papers, Oxford University Press, vol. 50(1), pages 1-22, January.
    11. Lal Kalu, Indra & Nidhi Paudyal, Guna & Das Gupta, Ashim, 1995. "Equity and efficiency issues in irrigation water distribution," Agricultural Water Management, Elsevier, vol. 28(4), pages 335-348, December.
    12. Speelman, Stijn & Frija, Aymen & Buysse, Jeroen & Van Huylenbroeck, Guido, 2010. "The Importance of Water Property Rights: Lessons from South Africa and Tunisia," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 95954, African Association of Agricultural Economists (AAAE).
    13. Elinor Ostrom & Roy Gardner, 1993. "Coping with Asymmetries in the Commons: Self-Governing Irrigation Systems Can Work," Journal of Economic Perspectives, American Economic Association, vol. 7(4), pages 93-112, Fall.
    14. Ray, Isha & Williams, Jeffrey, 2002. "Locational asymmetry and the potential for cooperation on a canal," Journal of Development Economics, Elsevier, vol. 67(1), pages 129-155, February.
    15. Cochran, Jaquelin & Ray, Isha, 2009. "Equity Reexamined: A Study of Community-Based Rainwater Harvesting in Rajasthan, India," World Development, Elsevier, vol. 37(2), pages 435-444, February.
    16. Ferguson, Carol A., 1992. "Water allocation, inefficiency and inequity in a government irrigation system," Journal of Development Economics, Elsevier, vol. 38(1), pages 165-182, January.
    17. Ujjayant Chakravorty & James Roumasset, 1991. "Efficient Spatial Allocation of Irrigation Water," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(1), pages 165-173.
    18. Juan Camilo Cardenas & Jeffrey Carpenter, 2008. "Behavioural Development Economics: Lessons from Field Labs in the Developing World," Journal of Development Studies, Taylor & Francis Journals, vol. 44(3), pages 311-338.
    19. Wade, Robert, 1988. "The management of irrigation systems: How to evoke trust and avoid prisoner's dilemma," World Development, Elsevier, vol. 16(4), pages 489-500, April.
    20. Bardhan, Pranab, 2000. "Irrigation and Cooperation: An Empirical Analysis of 48 Irrigation Communities in South India," Economic Development and Cultural Change, University of Chicago Press, vol. 48(4), pages 847-865, July.
    21. Gilles Grolleau & Naoufel Mzoughi & Angela Sutan, 2009. "The Impact of Envy-Related Behaviors on Development," Journal of Economic Issues, Taylor & Francis Journals, vol. 43(3), pages 795-808.
    22. Axel Ockenfels & Gary E. Bolton, 2000. "ERC: A Theory of Equity, Reciprocity, and Competition," American Economic Review, American Economic Association, vol. 90(1), pages 166-193, March.
    23. Gowdy, John & Iorgulescu, Raluca & Onyeiwu, Stephen, 2003. "Fairness and retaliation in a rural Nigerian village," Journal of Economic Behavior & Organization, Elsevier, vol. 52(4), pages 469-479, December.
    24. Forsythe Robert & Horowitz Joel L. & Savin N. E. & Sefton Martin, 1994. "Fairness in Simple Bargaining Experiments," Games and Economic Behavior, Elsevier, vol. 6(3), pages 347-369, May.
    25. Guth, Werner & Schmittberger, Rolf & Schwarze, Bernd, 1982. "An experimental analysis of ultimatum bargaining," Journal of Economic Behavior & Organization, Elsevier, vol. 3(4), pages 367-388, December.
    26. Platteau, Jean-Philippe, 2006. "Solidarity Norms and Institutions in Village Societies: Static and Dynamic Considerations," Handbook on the Economics of Giving, Reciprocity and Altruism, in: S. Kolm & Jean Mercier Ythier (ed.), Handbook of the Economics of Giving, Altruism and Reciprocity, edition 1, volume 1, chapter 12, pages 819-886, Elsevier.
    27. Salvatore di Falco & Erwin Bulte, 2011. "A Dark Side of Social Capital? Kinship, Consumption, and Savings," Journal of Development Studies, Taylor & Francis Journals, vol. 47(8), pages 1128-1151, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jing Tian & Shenglian Guo & Dedi Liu & Zhengke Pan & Xingjun Hong, 2019. "A Fair Approach for Multi-Objective Water Resources Allocation," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 33(10), pages 3633-3653, August.
    2. Elias Damtew & Cees Leeuwis & Paul C Struik & Francesco Cecchi & Barbara Mierlo & Rico Lie & Berga Lemaga & Katarzyna Cieslik, 2021. "Communicative interventions for collective action in the management of potato late blight: evidence from a framed field game experiment in Ethiopia," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 13(2), pages 255-271, April.
    3. Bell, Andrew & Zhang, Wei & Nou, Keosothea, 2016. "Pesticide use and cooperative management of natural enemy habitat in a framed field experiment," Agricultural Systems, Elsevier, vol. 143(C), pages 1-13.
    4. Fitsum Assefa Adela & Joachim Aurbacher & Gumataw Kifle Abebe, 2019. "Small-scale irrigation scheme governance - poverty nexus: evidence from Ethiopia," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 11(4), pages 897-913, August.
    5. Raphaëlle Ducrot & Magalie Bourblanc, 2017. "Promoting equity in water access: the limits of fairness of a rural water programme in semi‐arid Mozambique," Natural Resources Forum, Blackwell Publishing, vol. 41(3), pages 131-144, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Matteo M. Galizzi & Daniel Navarro-Martinez, 2019. "On the External Validity of Social Preference Games: A Systematic Lab-Field Study," Management Science, INFORMS, vol. 65(3), pages 976-1002, March.
    2. Bogliacino, Francesco & Codagnone, Cristiano, 2021. "Microfoundations, behaviour, and evolution: Evidence from experiments," Structural Change and Economic Dynamics, Elsevier, vol. 56(C), pages 372-385.
    3. Eckel, Catherine & Gintis, Herbert, 2010. "Blaming the messenger: Notes on the current state of experimental economics," Journal of Economic Behavior & Organization, Elsevier, vol. 73(1), pages 109-119, January.
    4. Simon Gaechter, 2014. "Human Pro-Social Motivation and the Maintenance of Social Order," CESifo Working Paper Series 4729, CESifo.
    5. Sylvie Thoron, 2016. "Morality Beyond Social Preferences: Smithian Sympathy, Social Neuroscience and the Nature of Social Consciousness [La moralité au delà des préférences sociales. La sympathie Smithienne, les neurosc," Post-Print hal-01645043, HAL.
    6. John A. List, 2007. "On the Interpretation of Giving in Dictator Games," Journal of Political Economy, University of Chicago Press, vol. 115(3), pages 482-493.
    7. El Harbi, Sana & Bekir, Insaf & Grolleau, Gilles & Sutan, Angela, 2015. "Efficiency, equality, positionality: What do people maximize? Experimental vs. hypothetical evidence from Tunisia," Journal of Economic Psychology, Elsevier, vol. 47(C), pages 77-84.
    8. Cox, James C. & Friedman, Daniel & Gjerstad, Steven, 2007. "A tractable model of reciprocity and fairness," Games and Economic Behavior, Elsevier, vol. 59(1), pages 17-45, April.
    9. Erik O. Kimbrough & Alexander Vostroknutov, 2016. "Norms Make Preferences Social," Journal of the European Economic Association, European Economic Association, vol. 14(3), pages 608-638, June.
    10. Ben D'Exelle & Arno Riedl, 2008. "Elite Capture, Political Voice and Exclusion from Aid: An Experimental Study," CESifo Working Paper Series 2400, CESifo.
    11. Bouma, Jetske A. & Joy, K.J. & Paranjape, Suhas & Ansink, Erik, 2014. "The Influence of Legitimacy Perceptions on Cooperation – A Framed Field Experiment," World Development, Elsevier, vol. 57(C), pages 127-137.
    12. Sven Fischer, 2005. "Inequality Aversion in Ultimatum Games with Asymmetric Conflict Payoffs - A Theoretical and Experimental Analysis -," Papers on Strategic Interaction 2005-36, Max Planck Institute of Economics, Strategic Interaction Group.
    13. Jan Stoop, 2014. "From the lab to the field: envelopes, dictators and manners," Experimental Economics, Springer;Economic Science Association, vol. 17(2), pages 304-313, June.
    14. Croson, Rachel & Konow, James, 2009. "Social preferences and moral biases," Journal of Economic Behavior & Organization, Elsevier, vol. 69(3), pages 201-212, March.
    15. Blanco, Mariana & Engelmann, Dirk & Normann, Hans Theo, 2011. "A within-subject analysis of other-regarding preferences," Games and Economic Behavior, Elsevier, vol. 72(2), pages 321-338, June.
    16. Timilsina, Raja R. & Kotani, Koji & Nakagawa, Yoshinori & Saijo, Tatsuyoshi, 2022. "Intragenerational deliberation and intergenerational sustainability dilemma," European Journal of Political Economy, Elsevier, vol. 73(C).
    17. Brice Corgnet & Antonio M. Espín & Roberto Hernán-González, 2015. "The cognitive basis of social behavior: cognitive reflection overrides antisocial but not always prosocial motives," Working Papers 15-04, Chapman University, Economic Science Institute.
    18. Croson, Rachel & Konow, James, 2007. "Double Standards: Social Preferences and Moral Biases," MPRA Paper 2729, University Library of Munich, Germany.
    19. Valerio Capraro & Roberto Di Paolo & Matjaz Perc & Veronica Pizziol, 2024. "Language-based game theory in the age of artificial intelligence," Papers 2403.08944, arXiv.org.
    20. Thorsten Chmura & Christoph Engel & Markus Englerth & Thomas Pitz, 2010. "At the Mercy of the Prisoner Next Door. Using an Experimental Measure of Selfishness as a Criminological Tool," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2010_27, Max Planck Institute for Research on Collective Goods.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:wdevel:v:40:y:2012:i:12:p:2537-2551. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/worlddev .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.