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Evaluation of Price Policy in the Presence of Water Theft

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  • Isha Ray
  • Jeffrey Williams

Abstract

Mathematical programming models of “representative” farms are commonly used to evaluate policies such as input subsidies and output price supports. On canals in India, upstream farmers routinely use more irrigation water than allotted. In such circumstances, the programming model should encompass farmers' locational heterogeneity. Here, a representative watercourse with thirty farms is calibrated to the eight crops, fifteen irrigation turns, yield responses to water, and seepage in Maharashtra. Not only does water “theft” increase the social cost of price policies, but the policies' increased inducement to theft by upstream farmers leaves those downstream with less water and lower incomes. Copyright 1999, Oxford University Press.

Suggested Citation

  • Isha Ray & Jeffrey Williams, 1999. "Evaluation of Price Policy in the Presence of Water Theft," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(4), pages 928-941.
    • Handle: RePEc:oup:ajagec:v:81:y:1999:i:4:p:928-941
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    Citations

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    Cited by:

    1. Reena Badiani-Magnusson & Katrina Jessoe, 2018. "Electricity Prices, Groundwater, and Agriculture: The Environmental and Agricultural Impacts of Electricity Subsidies in India," NBER Chapters, in: Agricultural Productivity and Producer Behavior, pages 157-183, National Bureau of Economic Research, Inc.
    2. Ray, Isha, 2006. "Outcomes and Processes in Economics and Anthropology," Economic Development and Cultural Change, University of Chicago Press, vol. 54(3), pages 677-694, April.
    3. Batabyal, Amitrajeet A. & Beladi, Hamid, 2021. "A game-theoretic model of water theft during a drought," Agricultural Water Management, Elsevier, vol. 255(C).
    4. Yurtseven, Çağlar, 2015. "The causes of electricity theft: An econometric analysis of the case of Turkey," Utilities Policy, Elsevier, vol. 37(C), pages 70-78.
    5. de Fraiture, Charlotte & Perry, C. J., 2007. "Why is agricultural water demand unresponsive at low price ranges?," Book Chapters,, International Water Management Institute.
    6. Fang, Lan & Nuppenau, Ernst-August, 2006. "Application of a Spatial Water Model in a Chinese Watershed," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25437, International Association of Agricultural Economists.
    7. de Fraiture, Charlotte & Perry, C. J., 2007. "Why is agricultural water demand unresponsive at low price ranges?," IWMI Books, Reports H040602, International Water Management Institute.
    8. Ray, Isha & Williams, Jeffrey, 2002. "Locational asymmetry and the potential for cooperation on a canal," Journal of Development Economics, Elsevier, vol. 67(1), pages 129-155, February.
    9. Parker, Dawn Cassandra, 2007. "Revealing "space" in spatial externalities: Edge-effect externalities and spatial incentives," Journal of Environmental Economics and Management, Elsevier, vol. 54(1), pages 84-99, July.
    10. Jean-Paul Azam & Jean-Daniel Rinaud, 2000. "Encroached Entitlements: Corruption and Appropriation of Irrigation Water in Southern Pun jab Pakistan)," Development Working Papers 144, Centro Studi Luca d'Agliano, University of Milano.
    11. Chant, Lindsay & McDonald, Scott & Verschoor, Arjan, 2004. "The Role of the 1994-95 Coffee Boom in Uganda's Recovery," Conference papers 331235, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

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