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State Rights over Water and Agricultural Productivity: Evidence from the Krishna Basin

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  • Shreyasee Das

    ()
    (Department of Economics, University of Wisconsin - Whitewater)

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    Abstract

    This paper analyzes the effects of intrastate water reallocation on agricultural productivity. Specifically, I look at the 1976 Krishna Water Dispute Tribunal that reallocated the rights of three Indian states over the Krishna River. I exploit districttime variation in access to water to obtain causal effects of water reallocation on crop output and yield. I find that on average, the decision reduces district output by 7.7 percent and yield by 5.5 percent. The weak negative net effects of the decision are comprised of productivity gains for the most downstream state, Andhra Pradesh, that are more than offset by the productivity losses for the upstream states Maharashtra and Karnataka. The negative impacts for Maharashtra, which are especially pronounced during periods of drought, are significant at conventional significance levels. Thus, the 1976 reallocation of state rights over water from the Krishna Basin was redistributive and weakly reduced overall efficiency.

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    File URL: http://www.uww.edu/documents/colleges/cobe/economics/wpapers/12-03_Das.pdf
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    Bibliographic Info

    Paper provided by UW-Whitewater, Department of Economics in its series Working Papers with number 12-03.

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    Length: 44 pages
    Date of creation: Dec 2012
    Date of revision:
    Handle: RePEc:uww:wpaper:12-03

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    Postal: Whitewater, WI 53190-1750
    Phone: (414) 472-1361
    Web page: http://www.uww.edu/cobe/economics/main.html
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    Related research

    Keywords: Agricultural Productivity; Water; Property Rights Reallocation;

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    1. Abhijit V. Banerjee & Paul J. Gertler & Maitreesh Ghatak, 2002. "Empowerment and Efficiency: Tenancy Reform in West Bengal," Journal of Political Economy, University of Chicago Press, vol. 110(2), pages 239-280, April.
    2. Sheetal Sekhri, 2011. "Public Provision and Protection of Natural Resources: Groundwater Irrigation in Rural India," American Economic Journal: Applied Economics, American Economic Association, vol. 3(4), pages 29-55, October.
    3. Boucher, Vincent & Bramoullé, Yann, 2010. "Providing global public goods under uncertainty," Journal of Public Economics, Elsevier, vol. 94(9-10), pages 591-603, October.
    4. Elinor Ostrom & Roy Gardner, 1993. "Coping with Asymmetries in the Commons: Self-Governing Irrigation Systems Can Work," Journal of Economic Perspectives, American Economic Association, vol. 7(4), pages 93-112, Fall.
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