IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v141y2020ics0301421520301610.html
   My bibliography  Save this article

Link between farm electricity supply management, farm investments, and farm incomes - Evidence from India

Author

Listed:
  • Chindarkar, Namrata
  • Chen, Yvonne Jie
  • Sathe, Shilpa

Abstract

This paper examines the link between farm electricity supply management in the context of Gujarat's feeder segregation program, “Jyotigram Yojana” (JGY), investments in fixed and variable farm inputs, and net farm income per acre using panel data from the 2004-05 and 2011-12 India Human Development Survey. Estimating panel fixed effects regressions, we find that exposure to JGY is associated with substitution away from diesel pumps, an increase in tubewell ownership, and greater likelihood of irrigating with tubewells. Further, there a positive and statistically significant correlation between JGY exposure and per acre cost of purchased water for irrigation. Consequently, we find a negative correlation between JGY exposure and net farm income per acre. We conclude that in the short-to-medium term concomitant increase in irrigation costs can negate the gains from more reliable but rationed farm electricity. Simultaneous policy measures alongside feeder segregation are thus needed to ensure affordable irrigation and subsequently farmers' welfare.

Suggested Citation

  • Chindarkar, Namrata & Chen, Yvonne Jie & Sathe, Shilpa, 2020. "Link between farm electricity supply management, farm investments, and farm incomes - Evidence from India," Energy Policy, Elsevier, vol. 141(C).
    • Handle: RePEc:eee:enepol:v:141:y:2020:i:c:s0301421520301610
    DOI: 10.1016/j.enpol.2020.111407
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421520301610
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2020.111407?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Chakravorty, Ujjayant & Pelli, Martino & Ural Marchand, Beyza, 2014. "Does the quality of electricity matter? Evidence from rural India," Journal of Economic Behavior & Organization, Elsevier, vol. 107(PA), pages 228-247.
    2. Lucio Monari, 2002. "Power Subsidies : A Reality Check on Subsidizing Power for Irrigation in India," World Bank Publications - Reports 11350, The World Bank Group.
    3. Bhargava, Anil K., 2013. "The Impact of India’s Rural Employment Guarantee on Demand for Agricultural Technology," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150163, Agricultural and Applied Economics Association.
    4. Barnum, Howard N. & Squire, Lyn, 1979. "An econometric application of the theory of the farm-household," Journal of Development Economics, Elsevier, vol. 6(1), pages 79-102, February.
    5. Fan, Shenggen & Zhang, Linxiu & Zhang, Xiaobo, 2002. "Growth, inequality, and poverty in rural China: the role of public investments," Research reports 125, International Food Policy Research Institute (IFPRI).
    6. Namrata Chindarkar & R. Quentin Grafton, 2019. "India's depleting groundwater: When science meets policy," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 6(1), pages 108-124, January.
    7. World Bank, 2016. "World Development Indicators 2016," World Bank Publications - Books, The World Bank Group, number 23969, December.
    8. International Water Management Institute (IWMI)., 2011. "Innovative electricity scheme sparks rural development in India's Gujarat State," IWMI Books, Reports H043971, International Water Management Institute.
    9. Shah, Tushaar & Bhatt, Sonal & Shah, R.K. & Talati, Jayesh, 2008. "Groundwater governance through electricity supply management: Assessing an innovative intervention in Gujarat, western India," Agricultural Water Management, Elsevier, vol. 95(11), pages 1233-1242, November.
    10. Shahidur R. Khandker & Douglas F. Barnes & Hussain A. Samad, 2013. "Welfare Impacts of Rural Electrification: A Panel Data Analysis from Vietnam," Economic Development and Cultural Change, University of Chicago Press, vol. 61(3), pages 659-692.
    11. Kumar, M. Dinesh, 2005. "Impact of electricity prices and volumetric water allocation on energy and groundwater demand management:: analysis from Western India," Energy Policy, Elsevier, vol. 33(1), pages 39-51, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Thapar, Sapan, 2022. "Centralized vs decentralized solar: A comparison study (India)," Renewable Energy, Elsevier, vol. 194(C), pages 687-704.
    2. Chindarkar, Namrata & Goyal, Nihit, 2023. "Did it increase energy consumption? A difference-in-differences evaluation of a rural electrification policy in Gujarat, India using night-time lights data," Energy Policy, Elsevier, vol. 183(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. World Bank Group, "undated". "Africa's Pulse, No. 17, April 2018," World Bank Publications - Reports 29667, The World Bank Group.
    2. Obsa Urgessa Ayana & Jima Degaga, 2022. "Effects of rural electrification on household welfare: a meta-regression analysis," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 69(2), pages 209-261, June.
    3. Bayer, Patrick & Kennedy, Ryan & Yang, Joonseok & Urpelainen, Johannes, 2020. "The need for impact evaluation in electricity access research," Energy Policy, Elsevier, vol. 137(C).
    4. Santosh Kumar & Ganesh Rauniyar, 2018. "The impact of rural electrification on income and education: Evidence from Bhutan," Review of Development Economics, Wiley Blackwell, vol. 22(3), pages 1146-1165, August.
    5. Jacopo Bonan & Stefano Pareglio & Massimo Tavoni, 2014. "Access to Modern Energy: a Review of Impact Evaluations," Working Papers 2014.96, Fondazione Eni Enrico Mattei.
    6. Gupta, Ridhima & Pelli, Martino, 2021. "Electrification and cooking fuel choice in rural India," World Development, Elsevier, vol. 146(C).
    7. Meles, Tensay Hadush, 2020. "Impact of power outages on households in developing countries: Evidence from Ethiopia," Energy Economics, Elsevier, vol. 91(C).
    8. Aditi Bhattacharyya & Daisy Das & Arkadipta Ghosh, 2017. "Electrification and Welfare of Poor Households in Rural India," Working Papers 1702, Sam Houston State University, Department of Economics and International Business.
    9. Chaurey, Ritam & Le, Duong Trung, 2018. "Infrastructure Grants and the Performance of Microenterprises," IZA Discussion Papers 11749, Institute of Labor Economics (IZA).
    10. Bahinipati, Chandra Sekhar & Viswanathan, P.K., 2019. "Incentivizing resource efficient technologies in India: Evidence from diffusion of micro-irrigation in the dark zone regions of Gujarat," Land Use Policy, Elsevier, vol. 86(C), pages 253-260.
    11. Michael Grimm & Robert Sparrow & Luca Tasciotti, 2015. "Does Electrification Spur the Fertility Transition? Evidence From Indonesia," Demography, Springer;Population Association of America (PAA), vol. 52(5), pages 1773-1796, October.
    12. Bhargava, Anil K., 2015. "NREGA's Impact on Agricultural Production, Labor, and Technology Adoption: New Evidence from a Detailed Indian Household-Plot Panel," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205695, Agricultural and Applied Economics Association.
    13. Jayanath Ananda & Mohamed Aheeyar, 2020. "An evaluation of groundwater institutions in India: a property rights perspective," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(6), pages 5731-5749, August.
    14. Irani Arráiz & Carla Calero, 2015. "From Candles to Light: The Impact of Rural Electrification," IDB Publications (Working Papers) 89136, Inter-American Development Bank.
    15. Kennedy, Ryan & Mahajan, Aseem & Urpelainen, Johannes, 2019. "Quality of service predicts willingness to pay for household electricity connections in rural India," Energy Policy, Elsevier, vol. 129(C), pages 319-326.
    16. Duncan Chaplin & Delia Welsh & Arif Mamun & Nick Ingwersen & Kristine Bos & Erin Crossett & Poonam Ravindranath & Dara Bernstein & William Derbyshire, "undated". "Ghana Power Compact: Evaluation Design Report," Mathematica Policy Research Reports 8c1896c6f9af45f08347287c1, Mathematica Policy Research.
    17. Chindarkar, Namrata & Goyal, Nihit, 2023. "Did it increase energy consumption? A difference-in-differences evaluation of a rural electrification policy in Gujarat, India using night-time lights data," Energy Policy, Elsevier, vol. 183(C).
    18. Dang, Duc Anh & La, Hai Anh, 2019. "Does electricity reliability matter? Evidence from rural Viet Nam," Energy Policy, Elsevier, vol. 131(C), pages 399-409.
    19. Chaurey, Ritam & Le, Duong Trung, 2022. "Infrastructure maintenance and rural economic activity: Evidence from India," Journal of Public Economics, Elsevier, vol. 214(C).
    20. Enrico Nano, 2022. "Electrifying Nigeria: the Impact of Rural Access to Electricity on Kids' Schooling," IHEID Working Papers 03-2022, Economics Section, The Graduate Institute of International Studies.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:141:y:2020:i:c:s0301421520301610. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.