The influence of carrier localization on photoluminescence efficiency droop and stimulated emission is studied in AlGaN multiple quantum wells with different strength of carrier localization. We observe that carrier delocalization at low temperatures predominantly enhances the nonradiative recombination and causes the droop, while the main effect of the delocalization at elevated temperatures is enhancement of PL efficiency due to increasing contribution of bimolecular recombination of free carriers. When the carrier thermal energy exceeds the dispersion of the potential fluctuations causing the carrier localization, the droop is caused by stimulated carrier recombination.