Missing Water: Agricultural Stress and Adaptation Strategies in Response to Groundwater Depletion in India
AbstractGroundwater depletion is becoming a serious policy concern in many developing countries but little is known about the costs of groundwater depletion. I use annual deviations of depth to groundwater from 1999 to 2003 from the 1985-1995 decadal means for Indian districts, to investigate how production and sown area respond to groundwater uctuations. I nd that a 1 meter decline in groundwater in a year reduces food-grain production by 8 percent, water intensive crop production by 9 percent and cash crops by 5 percent. I also use year-to-year transitions of groundwater around a cuto value, at which cost of technology required to access groundwater exogenously increases due to physical constraints, to examine coping mechanisms. I nd that for short run shocks around this cuto , sown area for food-grains and water intensive crops falls by 7 to 8 percent, whereas there is no change for cash crops. I evaluate the e ect of the transition of 10 year means of groundwater around this cuto on exit from farming. I do not nd evidence of exit of marginal or small farmers from agriculture. mitigating e ect.
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Bibliographic InfoPaper provided by University of Virginia, Department of Economics in its series Virginia Economics Online Papers with number 406.
Length: 26 pages
Date of creation: Oct 2013
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Groundwater Depletion; Agricultural Production; India;
Find related papers by JEL classification:
- O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
This paper has been announced in the following NEP Reports:
- NEP-AGR-2013-10-05 (Agricultural Economics)
- NEP-ALL-2013-10-05 (All new papers)
- NEP-DEV-2013-10-05 (Development)
- NEP-ENV-2013-10-05 (Environmental Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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