Groundwater management institutions in the face of rapid urbanization – Results of a framed field experiment in Bengaluru, India

Many aquifers in semi-arid and arid regions with rapid urbanization are over-exploited or even at the point of depletion. Driven by the increased demand for food and other agricultural products, irrigated agriculture constitutes the biggest user of groundwater, and has thus contributed to this critical situation. In this paper, we compare different designs of groundwater management institutions in order to avoid aquifer over-exploitation and ensure secure water sources. We assess externally imposed reward-based and punishment rules as well as communication on their effectiveness to reduce water extraction behavior of groundwater users. Moreover, we evaluate how different user types affect the outcome of these institutional designs. To do so, we conducted a framed field experiment with 600 households along the rural-urban interface of the fast growing city of Bengaluru, India. Results indicate that all treatments can prolong the life of the resource but reward-based and punishment rules seem to be more effective than communication. Moreover, we find that user type behavior identified in the baseline trial is persistent in the treatment trial despite interventions.