Chapter 15 - Factors affecting farmers’ choice of tube well ownership in Punjab, Pakistan

Abstract

Development of private tube wells and groundwater markets have transformed the farming systems of smallholders in Pakistan, leading to the realization of economic incentives for higher outputs, profits, and sustainability. This chapter aimed at identifying significant factors affecting farmers’ choice of tube well ownership. The multinomial logit model was applied to investigate the factors that drove farmers’ choice among the following three options to access groundwater namely, (1) exclusive ownership of a tube well, (2) sharing a tube well, and (3) buying water from informal groundwater markets. Data from 224 households consisting of 84 exclusive owners, 65 tube well shareholders, and 75 water buyers were analyzed. The results showed that decision maker’s age, groundwater depth, and salinity perception increased the odds of choosing the shared tube wells over exclusively owned tube wells. The price of groundwater significantly decreased the odds of opting for shared tube wells. The odds of purchasing water significantly increased with an increase in salinity. On the other hand, land size, price of groundwater, and ownership of tractor decreased the odds of purchasing water. The findings implied that shared tube wells were more preferred over exclusive tube wells in deeper water table areas and where water was more saline. In the given circumstances of falling groundwater levels, and decreasing quality of groundwater, the focus should be shifted to sustainable use and management of these shared tube wells and purchased water to safeguard the groundwater resources and farm profitability in the long run.