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Beating negative externality through groundwater recharge in India: a resource economic analysis

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  • DIWAKARA, H.
  • CHANDRAKANTH, M.G.

Abstract

Negative externalities in groundwater irrigation arise due to overdraft of groundwater leading to premature well failure, and reduced yield and age/life of wells. A watershed development program aiming at recharging aquifers, facilitating sustainable groundwater use, is the focus of this study. Primary survey data from farmers using groundwater for irrigation in a dry land watershed in peninsular India are analysed. Results indicate that, even after considering (i) amortized cost of watershed, (ii) amortized cost per acre-inch of groundwater, and (iii) electricity cost of groundwater extraction, the net returns in watershed are economically viable. This can aid policy-makers, addressing groundwater overdraft leading to negative externalities, reach solutions with the assistance of a watershed development program enhancing groundwater recharge in dryland areas in developing countries.

Suggested Citation

  • Diwakara, H. & Chandrakanth, M.G., 2007. "Beating negative externality through groundwater recharge in India: a resource economic analysis," Environment and Development Economics, Cambridge University Press, vol. 12(2), pages 271-296, April.
  • Handle: RePEc:cup:endeec:v:12:y:2007:i:02:p:271-296_00
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    Cited by:

    1. Athukorala, Wasantha & Wilson, Clevo & Managi, Shunsuke, 2017. "Social welfare losses from groundwater over-extraction for small-scale agriculture in Sri Lanka: Environmental concern for land use," Journal of Forest Economics, Elsevier, vol. 29(PA), pages 47-55.
    2. Asghar, Sobia & Tsusaka, Takuji W. & Jourdain, Damien & Saqib, Shahab E. & Sasaki, Nophea, 2022. "Assessing the efficiency of smallholder sugarcane production: The case of Faisalabad, Pakistan," Agricultural Water Management, Elsevier, vol. 269(C).
    3. Perrings, Charles, 2014. "Environment and development economics 20 years on," Environment and Development Economics, Cambridge University Press, vol. 19(3), pages 333-366, June.
    4. Seenatha,P & Devib, I & Chakravartya, A & Shajic, E, 2018. "To conserve or to explore? farm-level strategies to manage groundwater," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 31(2).
    5. Patil, Kiran Kumar R. & Chandrakanth, M.G. & Sadhana, H.S. & Olekar, Jagannath, 2016. "Returns to Irrigation, Natural Resource Management, Research and Extension," Conference Papers 261296, Indian Society of Agricultural Economics.
    6. Wasantha Athukorala & Clevo Wilson, 2012. "Groundwater overuse and farm-level technical inefficiency: evidence from Sri Lanka," School of Economics and Finance Discussion Papers and Working Papers Series 279, School of Economics and Finance, Queensland University of Technology.
    7. Bassi, Nitin & Vijayshankar, P. S. & Kumar, M. Dinesh, 2008. "Wells and ill-fare: impacts of well failures on cultivators in hard rock areas of Madhya Pradesh," IWMI Conference Proceedings 245346, International Water Management Institute.
    8. Varghese, Shalet Korattukudy & Veettil, Prakashan Chellattan & Speelman, Stijn & Buysse, Jeroen & Van Huylenbroeck, Guido, 2013. "Estimating the causal effect of water scarcity on the groundwater use efficiency of rice farming in South India," Ecological Economics, Elsevier, vol. 86(C), pages 55-64.
    9. Patil, Kiran, 2015. "An Implication of Groundwater Institutions on Reducing Negative Externality, Enhancing Economic Efficiency and Welfare in Karnataka," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 70(3), pages 1-15.
    10. Bouma, Jetske A. & Biggs, Trent W. & Bouwer, Laurens M., 2011. "The downstream externalities of harvesting rainwater in semi-arid watersheds: An Indian case study," Agricultural Water Management, Elsevier, vol. 98(7), pages 1162-1170, May.

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