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Groundwater Institutions in the Face of Global Climate Change

Author

Listed:
  • Jinhua Zhao

    (Dyson School of Applied Economics and Management, SC Johnson College of Business, Cornell University, Ithaca, New York, USA)

  • Nathan P. Hendricks

    (Department of Agricultural Economics, Kansas State University, Manhattan, Kansas, USA)

  • Haoyang Li

    (College of Economics and Management, Nanjing Agricultural University, Nanjing, China)

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.

Suggested Citation

  • Jinhua Zhao & Nathan P. Hendricks & Haoyang Li, 2024. "Groundwater Institutions in the Face of Global Climate Change," Annual Review of Resource Economics, Annual Reviews, vol. 16(1), pages 125-141, October.
    • Handle: RePEc:anr:reseco:v:16:y:2024:p:125-141
    DOI: 10.1146/annurev-resource-101623-100909
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    More about this item

    Keywords

    climate change; groundwater institutions; adaptation; irrigation;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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