Market-based versus collective self-governance in irrigation systems: Differential effects on infrastructure
Guowei Song1, Yu Zhang2, Ming Chang2
1State Key Laboratory of Efficient Utilization of Arable Land in China, Institute of Agricultural Resources and Regional Planning, Chinese Academy of Agricultural Sciences, Beijing, 100081, China.
Journal of Environmental Management
|July 7, 2026
Summary
Market-based governance of irrigation systems is more effective than collective self-governance for improving infrastructure condition. This approach enhances maintenance contributions and reduces water conflicts, especially for smaller farms.
Area of Science:
- Agricultural Economics
- Environmental Governance
- Institutional Analysis
Background:
- Effective irrigation governance is vital for agricultural productivity and rural development.
- Limited consensus exists on how market-based vs. collective self-governance impacts irrigation infrastructure.
- Understanding these mechanisms requires context-specific analysis.
Purpose of the Study:
- To systematically assess the influence of governance modes on irrigation infrastructure condition.
- To compare the effectiveness of market-based governance and collective self-governance.
- To identify mechanisms and contextual factors driving these differences.
Main Methods:
- Utilized household survey data from the North China Plain.
- Applied the Institutional Analysis and Development framework.
- Employed an endogenous switching regression model to analyze governance impacts.
Main Results:
- Market-based governance significantly outperforms collective self-governance in improving infrastructure condition.
- Market-based governance benefits are stronger for farmers with smaller farm sizes and less fragmented land.
- Improved infrastructure is linked to increased maintenance contributions and reduced water conflicts under market-based governance.
Conclusions:
- Market-based governance offers a more effective model for irrigation infrastructure management.
- Group size moderates the effectiveness of market-based governance, performing best with over 11 households.
- Findings provide context-sensitive insights for irrigation policy and reform in common-pool resource management.
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