Economic efficiency of groundwater extraction under strategic interaction among rice farmers in Lumban, Laguna, Philippines

Date

12-2016

Abstract

The effects of strategic interaction on the economic efficiency of groundwater extraction of rice farmers in Lumban, Laguna, in the Philippines were analyzed using a dynamic groundwater demand model based on theoretical specifications of Rubio and Casiño (2001, 2003). The parameters of the model were based on statistically estimated rice production function and groundwater demand function. Production data used in the estimation of these functions were obtained from a complete enumeration of 112 rice farmers in Lumban during the dry season production cycle in 2015. Hydrologic data required by the dynamic groundwater demand model were obtained from secondary sources particularly from related government agencies and contemporary groundwater literature.

Assuming that the assumptions and parameters of the model are acceptable and appropriate for the conditions in Lumban, the study finds that strategic interaction would not cause significant losses in economic efficiency even if such behavior causes the groundwater extraction rate of farmers to increase in the long-run; thereby resulting to lower water table levels. However, the adverse economic effects of strategic interaction would become pronounced when groundwater recharge decreases.

Therefore, policy strategies should not be concerned with the aim of eradicating strategic interaction among the users of the groundwater resource. Instead, policies should focus on the conservation of watershed resources to enhance the production of ecosystem services that positively affect groundwater recharge, alongside developing means to promote technological improvements in STW irrigation.

Document Type

Dissertation

Degree

Doctor of Philosophy in Agricultural Economics

College

Graduate School (GS)

Adviser/Committee Chair

Jose M. Yorobe, Jr., Ph.D.

Committee Member

Victor B. Ella, Rex Victor O. Cruz, Felino P. Lansigan, Roberto F. Rañola, Jr.

Language

English

Location

UPLB Main Library Special Collections Section (USCS)

Call Number

LG 996 2016 A14 Q55

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