Risk management and asymmetric information in wastewater use for irrigation: a chain analysis

Gains from use of treated wastewater for irrigation remain unexploited due to institutional problems, which are related to risk externalities and asymmetric information in the food supply chain.

The chain consists of several stakeholders, most importantly water polluters, wastewater treatment plants, farmers and consumers of farm products.Goal of the project is to describe the interaction of stakeholders along an economic chain structure by means of a game theoretic model. Characteristics of interaction in the chain structure will be identified, focussing especially on market failures and inefficiencies. The model will enhance the understanding and provide solutions for chain management problems as well as recommendations for institutional reform.

Contact: Michael Gengenbach