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Economics of Groundwater Irrigation in Nepal: Some Farm-Level Evidences

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  • Bhandari, Humnath
  • Pandey, Sushil

Abstract

This article examines the economics of groundwater irrigation and shallow tubewell (STW) ownership decision making, using farm-level data collected from 324 households in Nepal. STW irrigation generated a significant positive effect on rice yield and farmers’ incomes. Based on a probit model, the farm size, land fragmentation, access to electricity, and access to credit were found to significantly influence farmers’ decisions to own STWs. Although the water market benefited poor farmers, it is too small and monopolistic. Policy reforms needed to make groundwater accessible to the poor majority include effective credit programs, investments in rural electrification, and public sector support for promoting suitable pumping technologies

Suggested Citation

  • Bhandari, Humnath & Pandey, Sushil, 2006. "Economics of Groundwater Irrigation in Nepal: Some Farm-Level Evidences," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(1), pages 1-15, April.
    • Handle: RePEc:ags:joaaec:43759
    DOI: 10.22004/ag.econ.43759
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    References listed on IDEAS

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    1. Foltz, Jeremy D, 2003. "The Economics of Water-Conserving Technology Adoption in Tunisia: An Empirical Estimation of Farmer Technology Choice," Economic Development and Cultural Change, University of Chicago Press, vol. 51(2), pages 359-373, January.
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    4. Singh, Dalbir, 2002. "Groundwater Markets in Fragile Environments: Key Issues in Sustainability," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 57(2), June.
    5. Jonathan Isham, 2002. "The Effect of Social Capital on Fertiliser Adoption: Evidence from Rural Tanzania," Journal of African Economies, Centre for the Study of African Economies, vol. 11(1), pages 39-60, March.
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    7. Hyunbae Chun & Jeungil Oh, 2002. "An instrumental variable estimate of the effect of fertility on the labour force participation of married women," Applied Economics Letters, Taylor & Francis Journals, vol. 9(10), pages 631-634.
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    Cited by:

    1. Suresh Baral & Kyung Chun Kim, 2015. "Stand-Alone Solar Organic Rankine Cycle Water Pumping System and Its Economic Viability in Nepal," Sustainability, MDPI, vol. 8(1), pages 1-18, December.
    2. Foster, Timothy & Adhikari, Roshan & Adhikari, Subash & Justice, Scott & Tiwari, Baburam & Urfels, Anton & Krupnik, Timothy J., 2021. "Improving pumpset selection to support intensification of groundwater irrigation in the Eastern Indo-Gangetic Plains," Agricultural Water Management, Elsevier, vol. 256(C).

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