Cooperation Enhances Adaptation to Environmental Uncertainty: Evidence from Irrigation Behavioral Experiments in South China

Abstract

The world currently faces an unprecedented phase of global environmental change largely driven by the combined impact of anthropogenic climate change and environmental degradation. Adaptation to global environmental changes in natural resource management is often hindered by high levels of uncertainty related to environmental impact projections. Management strategies and policies to support adaptation measures and sustainable resource management under substantial environmental uncertainty are thus urgently needed. The paper reports results of behavioral irrigation experiments with farmers and students in the region of Hangzhou in China. The experimental design simulates a small-scale irrigation system with five parties located along an irrigation channel. The first treatment adds weather variability with a drying tendency that influences water availability in the irrigation channel. In the second treatment, the participants can select one of two adaptation options. Our results suggest that participants react with a marked delay to weather uncertainty. In addition, upstream players are more likely to adapt to uncertainty than those further downstream, and groups who show higher levels of cooperation more frequently invest in adaptation measures. Lastly, extraction inequality in earlier stages is found to constitute a key obstacle to collective adaptation.