Assessing Groundwater Pricing and Consumption Behavior in the North-Western Bangladesh: Proposing Sustainable and Equitable Models for Irrigation Management
Abstract
This research explores the aspects of groundwater consumption in irrigation and pricing attitudes of farmers working in the North-Western Bangladesh, a region that is currently experiencing very serious effects of groundwater depletion, exacerbated by inefficient pricing mechanisms. Utilizing choice experiments and latent class analysis, the research discovers three groups of farmers, based on their price model preferences: small-scale farmers, who prefer tiered pricing for fairness; medium-scale farmers, who prefer volumetric and marginal cost pricing, indicating efficiencies and conservation; and large-scale farmers, who prefer block pricing based on convenience. Higher groundwater prices have been shown to result in lower levels of consumption, which actually suggests water-saving behavior, particularly when using technologies like Alternate Wetting and Drying (AWD). However, the low adoption rates of these technologies underscore the need for government intervention in the form of subsidies and awareness-raising initiatives. The current pricing system supports farmer groups who use privately owned tube wells. This study recommends a hybrid pricing system that consists of tiered and volumetric pricing to address issues of equity and sustainability, as well as improvements to infrastructure, metering systems, and market policies to enhance sustainability and equity in the region's groundwater irrigation markets.
Conclusion
This research assessed groundwater use and pricing among farmers in the Barind Tract, Bangladesh, identifying issues such as groundwater depletion, inequitable pricing, and unsustainable extraction. The study found that high irrigation water prices promote conservation through reduced consumption, but current pricing schemes, especially those controlled by private tube well owners, disproportionately affect small and marginal farmers. Among the pricing models evaluated, tiered pricing was favored by smallholders for its fairness, while larger and conservation-oriented farmers preferred volumetric and marginal cost pricing for efficiency. A hybrid pricing model combining tiered and volumetric features is recommended to balance equity and sustainability. Investments in infrastructure, such as advanced water metering systems, are essential to ensure the pricing scheme's viability and enable better monitoring and enforcement. Offering incentives or subsidies for water-saving technologies like AWD could further reduce water use without harming productivity. Educational initiatives are also necessary to raise awareness among farmers about the environmental and economic benefits of sustainable groundwater management. Regulatory reforms are needed to address gender inequalities and ensure fair access to groundwater resources. Improved governance structures will help prevent exploitative practices by tube well owners. Further research should explore the evolution of hybrid pricing models, aligned with the socioeconomic realities of the Barind Tract, and assess their long-term impact on agricultural productivity and groundwater sustainability. Integrating gender-sensitive data systems and community participation mechanisms could foster inclusive decision-making and enhance adaptive groundwater management outcomes. This study is limited by its cross-sectional design, which prevents assessing long-term impacts of pricing changes. Additionally, the low adoption rate of water-saving technologies like AWD among farmers requires further investigation into the barriers to technology uptake.