The efficacy of groundwater markets on agricultural productivity and resource use sustainability: Evidence from the Upland Balochistan Region of Pakistan

This thesis analyses the effectiveness of groundwater markets on agricultural productivity and resource use sustainability under water scarcity conditions in the upland Balochistan region in Pakistan. Groundwater markets are emerging to manage the increasing water scarcity conditions. Balochistan is facing an unprecedented water shortage problem owing to population growth, climate change and poor water management. Irrigation is highly dependent on groundwater, however, the governmentŸs past and current groundwater development policies and subsidised electricity for agricultural tubewells have resulted in a massive drawdown of the watertables, exploiting the groundwater at a rate faster than its replenishment, contributing to increasing overdraft and growing water scarcity conditions. Three key hypotheses were tested:- (i) that reliable access to water through groundwater markets changes crop choice, increases agricultural productivity and improves sustainability of water use; (ii) that the rapid decline of the watertable is the result of the governmentŸs groundwater policies; and (iii) that the complete withdrawal of subsidies on tubewell electricity would make farming economically non-feasible. Therefore the primary objectives of this thesis are to:- (i) examine the factors affecting the tubewell development, the emergence of groundwater markets and the operation duration of tubewells; (ii) analyse and document the effect of groundwater-related policies on the resource depletion; (iii) investigate the type of groundwater markets that exist in the area; (iv) explore the effect of water markets on crop choice, agricultural productivity, farm incomes and resource use sustainability;