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Efficient Irrigation and Water Conservation : Evidence from South India

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  • Fishman,Ram
  • Gine,Xavier
  • Jacoby,Hanan G.

Abstract

Widespread adoption of efficient irrigation technologies, including drip irrigation, has been proposed as a means of limiting groundwater overexploitation, especially in the intensively farmed and water-stressed South Asia region. This paper reports on a randomized controlled trial conducted in the Indian state of Andhra Pradesh to evaluate the potential productivity and water-saving benefits of smallholder drip irrigation. A group of well-owners was encouraged to adopt drip irrigation through a subsidy scheme, whereas a control group was left to its own devices. The results indicate that, after three years, the drip group shifted into more remunerative and irrigation reliant crops, enjoyed higher agricultural revenue, and transferred (primarily through cash sales) more of its groundwater to adjacent plots. In terms of groundwater pumping, which has zero marginal price in this setting, there is precisely zero difference between the drip and control groups. The evidence thus suggests that drip adoption in South India, while increasing irrigation efficiency, will not save groundwater.

Suggested Citation

  • Fishman,Ram & Gine,Xavier & Jacoby,Hanan G., 2021. "Efficient Irrigation and Water Conservation : Evidence from South India," Policy Research Working Paper Series 9713, The World Bank.
    • Handle: RePEc:wbk:wbrwps:9713
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    1. repec:ags:cfcp15:344327 is not listed on IDEAS
    2. Bhandari, Humnath & Chakravorty, Ujjayant & Habib, Muhammad Ashraful & Emerick, Kyle, 2025. "Targeted Subsidies for Water Conservation in Smallholder Agriculture," 2025 AAEA & WAEA Joint Annual Meeting, July 27-29, 2025, Denver, CO 361140, Agricultural and Applied Economics Association.
    3. Singh, Gurpreet & Gandhi, Vasant P. & Jain, Dinesh, 2024. "Micro-irrigation adoption and the Jevons’ Paradox: A study from four states of India," Agricultural Water Management, Elsevier, vol. 303(C).
    4. Gauri Sreekumar & Sabuj Kumar Mandal, 2024. "Impact of drought on out-migration among rural farm households in India: does participation in non-farm activities and access to irrigation make any difference?," Indian Economic Review, Springer, vol. 59(2), pages 525-558, December.
    5. Mattoussi, Wided & Mattoussi, Foued & Larnaout, Afrah, 2023. "Optimal subsidization for the adoption of new irrigation technologies," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 1126-1141.
    6. Balasubramanya, Soumya, 2024. "Rationalizing groundwater use in agriculture in South Asia: the role of technology," IAAE 2024 Conference, August 2-7, 2024, New Delhi, India 344327, International Association of Agricultural Economists (IAAE).
    7. Zi, Shuangshuang & Li, Yan & Zhang, Jingwen & Hou, Chengcheng & Lin, Huiqing & Xu, Zhengjie & Sang, Shan & Dong, Jinwei & Fu, Bojie, 2025. "The biophysical and crop yield effects of irrigation and their changes in China’s drylands," Agricultural Water Management, Elsevier, vol. 313(C).
    8. Devi, G. Karthiga & Narayanamoorthy, A. & Sujitha, K. S. & Suresh, R., 2023. "Exploring the Determinants of Groundwater Exploitation Among Indian Districts," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 0(Number 2), June.
    9. Gregory Lane, 2024. "Adapting to Climate Risk With Guaranteed Credit: Evidence From Bangladesh," Econometrica, Econometric Society, vol. 92(2), pages 355-386, March.
    10. Xuan Fang & Jie Yang, 2025. "Implementation and Validation of an Electricity-Driven Water Conservation Method for Plain-Region Irrigation: A Control Method Based on Power-Consumption Feedback," Sustainability, MDPI, vol. 17(12), pages 1-20, June.
    11. Zappalà, Guglielmo, 2024. "Adapting to climate change accounting for individual beliefs," Journal of Development Economics, Elsevier, vol. 169(C).
    12. Zhao, Nan & Zheng, Xinjun & Zhang, Bin & Tian, Shengchuan & Du, Lan & Li, Yan, 2025. "Does water-saving irrigation truly conserve water? Yes and No," Agricultural Water Management, Elsevier, vol. 311(C).

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    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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