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Groundwater markets under the water scarcity and declining watertable conditions: The upland Balochistan Region of Pakistan

Author

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  • Khair, Syed M.
  • Mushtaq, Shahbaz
  • Culas, Richard J.
  • Hafeez, Mohsin

Abstract

The study documents comprehensive analysis on informal groundwater marketing in upland Balochistan, Pakistan. Informal groundwater markets are emerging as a feasible option to manage increasing water scarcity and declining water tables resulting from poor groundwater policies. Firstly, we evaluated the groundwater trading mechanism; we then examined factors affecting the groundwater trading using empirical data and logit econometric models. We did not observe any permanent groundwater transactions; only temporary groundwater exchange takes place. Two common transactions methods were noted – water in exchange for a given crop share and cash payment at a flat rate per hour. In all, 60% of respondents reported selling water in exchange for a crop share. This form of transaction intensifies as we move from high altitude areas to low altitude areas where water and land are relatively abundant. In general, crop sharing rates were 33% of crop output. Water trading in the form of cash transactions was practiced by 40% of respondents. The charge per hour also varied with altitude, with average prices of Rs. 100,1USD=Pakistan Rupees (Rs) 85 as of June 2011.1 Rs. 112, and Rs. 205 per hour reported at low, medium and high altitudes, respectively. The increase in this form of water marketing as we move from low to high altitude areas is mainly in response to relatively scarce water and land in high altitude areas.

Suggested Citation

  • Khair, Syed M. & Mushtaq, Shahbaz & Culas, Richard J. & Hafeez, Mohsin, 2012. "Groundwater markets under the water scarcity and declining watertable conditions: The upland Balochistan Region of Pakistan," Agricultural Systems, Elsevier, vol. 107(C), pages 21-32.
    • Handle: RePEc:eee:agisys:v:107:y:2012:i:c:p:21-32
    DOI: 10.1016/j.agsy.2011.11.007
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    References listed on IDEAS

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    1. Molden, David, 2007. "Water for food, water for life: a comprehensive assessment of water management in agriculture: summary. In Russian," IWMI Books, Reports H041260, International Water Management Institute.
    2. Mustafa, Daanish & Qazi, Muhammed Usman, 2007. "Transition from Karez to Tubewell Irrigation: Development, Modernization, and Social Capital in Balochistan, Pakistan," World Development, Elsevier, vol. 35(10), pages 1796-1813, October.
    3. Molden, David, 2007. "Water for food, water for life: a comprehensive assessment of water management in agriculture," IWMI Books, Reports H040193, International Water Management Institute.
    4. Meinzen-Dick, Ruth Suseela, 1996. "Groundwater markets in Pakistan: participation and productivity," Research reports 105, International Food Policy Research Institute (IFPRI).
    5. Singh, Dalbir, 2002. "Groundwater Markets in Fragile Environments: Key Issues in Sustainability," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 57(2), June.
    6. Zhang, Lijuan & Wang, Jinxia & Huang, Jikun & Rozelle, Scott, 2008. "Development of Groundwater Markets in China: A Glimpse into Progress to Date," World Development, Elsevier, vol. 36(4), pages 706-726, April.
    7. Molden, David, 2007. "Water for food, water for life: a comprehensive assessment of water management in agriculture: summary," IWMI Books, Reports H039769, International Water Management Institute.
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    Cited by:

    1. Sheng, Jichuan & Cheng, Qian & Yang, Hongqiang, 2024. "Water markets and water inequality: China's water rights trading pilot," Socio-Economic Planning Sciences, Elsevier, vol. 94(C).
    2. Muhammad Saydal Khan & Ali Tahir & Imtiaz Alam & Sohail Razzaq & Muhammad Usman & Wajahat Ullah Khan Tareen & Nauman Anwar Baig & Salman Atif & Mehwish Riaz, 2021. "Assessment of Solar Photovoltaic Water Pumping of WASA Tube Wells for Irrigation in Quetta Valley Aquifer," Energies, MDPI, vol. 14(20), pages 1-14, October.
    3. Ayesha Ayub & Sheikh Saeed Ahmad, 2020. "Seasonal Assessment of Groundwater Contamination in Coal Mining Areas of Balochistan," Sustainability, MDPI, vol. 12(17), pages 1-21, August.
    4. Yashodha, 2020. "Do buyers have bargaining power? Evidence from informal groundwater contracts," PLOS ONE, Public Library of Science, vol. 15(9), pages 1-21, September.
    5. Jayanath Ananda & Mohamed Aheeyar, 2020. "An evaluation of groundwater institutions in India: a property rights perspective," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(6), pages 5731-5749, August.
    6. Junaid Alam Memon & Mehwish Qudoos Alizai & Anwar Hussain, 2020. "Who will think outside the sink? Farmers’ willingness to invest in technologies for groundwater sustainability in Pakistan," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(5), pages 4425-4445, June.
    7. Zeyu Wang & Juqin Shen & Fuhua Sun & Zhaofang Zhang & Dandan Zhang & Yizhen Jia & Kaize Zhang, 2019. "A Pricing Model for Groundwater Rights in Ningxia, China Based on the Fuzzy Mathematical Model," IJERPH, MDPI, vol. 16(12), pages 1-20, June.
    8. de Bonviller, Simon & Wheeler, Sarah Ann & Zuo, Alec, 2020. "The dynamics of groundwater markets: Price leadership and groundwater demand elasticity in the Murrumbidgee, Australia," Agricultural Water Management, Elsevier, vol. 239(C).

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