Full Citation

Title: From decentralized to centralized irrigation management

Citation Type: Journal Article

Publication Year: 2018

ISBN:

ISSN: 01672681

DOI: 10.1016/j.jebo.2018.04.003

NSFID:

PMCID:

PMID:

Abstract: Centralized organizations can internalize transaction costs and externalities, addressing possible inefficiencies of decentralized management. In practice, however, centralized organizations can have its own inefficiencies and decentralized management can do relatively well. Empirically testing relative efficiency is difficult because distinct organizations emerge endogenously in various contexts. This paper, in contrast, draws upon the unique history of New Mexico, leveraging a natural experiment to assess how the partial transition in the early 20th century from the original small decentralized communal Spanish irrigation systems (acequias) to centralized quasi-public irrigation districts altered agricultural development and production. Surface water irrigators in arid regions confront public good issues for building and maintaining shared infrastructure as well as common-pool resource issues to appropriate the surface water. My results confirm that irrigation districts can significantly improve outcomes when investing in costly infrastructure to expand irrigated acreage, increasing farmland values up to 33%. However, I find no broader evidence that the centralized control of water distribution provides any gains to acreage previously under irrigation by the decentralized acequias.

Url: https://www.sciencedirect.com/science/article/abs/pii/S0167268118301045

User Submitted?: No

Authors: Smith, Steven M.

Periodical (Full): Journal of Economic Behavior & Organization

Issue:

Volume: 151

Pages: 62-87

Data Collections: IPUMS NHGIS

Topics: Land Use/Urban Organization, Natural Resource Management, Other

Countries: