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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.

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Bibliographic Info

Article provided by Cambridge University Press in its journal Environment and Development Economics.

Volume (Year): 12 (2007)
Issue (Month): 02 (April)
Pages: 271-296

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Handle: RePEc:cup:endeec:v:12:y:2007:i:02:p:271-296_00

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Cited by:
  1. 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.
  2. 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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