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Electricity Prices, Groundwater, and Agriculture: The Environmental and Agricultural Impacts of Electricity Subsidies in India

In: Agricultural Productivity and Producer Behavior

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  • Reena Badiani-Magnusson
  • Katrina Jessoe

Abstract

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Suggested Citation

  • 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.
    • Handle: RePEc:nbr:nberch:13948
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    References listed on IDEAS

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    1. Shawn Cole, 2009. "Fixing Market Failures or Fixing Elections? Agricultural Credit in India," American Economic Journal: Applied Economics, American Economic Association, vol. 1(1), pages 219-250, January.
    2. Banerji, A. & Meenakshi, J.V. & Khanna, Gauri, 2012. "Social contracts, markets and efficiency: Groundwater irrigation in North India," Journal of Development Economics, Elsevier, vol. 98(2), pages 228-237.
    3. Murgai, Rinku, 2001. "The Green Revolution and the productivity paradox: evidence from the Indian Punjab," Agricultural Economics, Blackwell, vol. 25(2-3), pages 199-209, September.
    4. Hendricks, Nathan P. & Peterson, Jeffrey M., 2012. "Fixed Effects Estimation of the Intensive and Extensive Margins of Irrigation Water Demand," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 37(1), pages 1-19, April.
    5. Timothy Besley & Rohini Pande & Lupin Rahman & Vijayendra Rao, 2004. "The Politics of Public Good Provision: Evidence from Indian Local Governments," Journal of the European Economic Association, MIT Press, vol. 2(2-3), pages 416-426, 04/05.
    6. Kausik Chaudhuri & Sugato Dasgupta, 2005. "The political determinants of central governments' economic policies in India: an empirical investigation," Journal of International Development, John Wiley & Sons, Ltd., vol. 17(7), pages 957-978.
    7. Kumar, M. Dinesh, 2005. "Impact of electricity prices and volumetric water allocation on energy and groundwater demand management:: analysis from Western India," Energy Policy, Elsevier, vol. 33(1), pages 39-51, January.
    8. repec:ags:jrapmc:122312 is not listed on IDEAS
    9. Mukherji, A. & Das, B. & Majumdar, N. & Nayak, N.C. & Sethi, R.R. & Sharma, B.R., 2009. "Metering of agricultural power supply in West Bengal, India: Who gains and who loses?," Energy Policy, Elsevier, vol. 37(12), pages 5530-5539, December.
    10. Kanwar, Sunil, 2006. "Relative profitability, supply shifters and dynamic output response, in a developing economy," Journal of Policy Modeling, Elsevier, vol. 28(1), pages 67-88, January.
    11. Lucio Monari, 2002. "Power Subsidies : A Reality Check on Subsidizing Power for Irrigation in India," World Bank Publications - Reports 11350, The World Bank Group.
    12. Schoengold, Karina & Zilberman, David, 2007. "The Economics of Water, Irrigation, and Development," Handbook of Agricultural Economics, in: Robert Evenson & Prabhu Pingali (ed.), Handbook of Agricultural Economics, edition 1, volume 3, chapter 58, pages 2933-2977, Elsevier.
    13. Strand, Jon, 2010. "The full economic cost of groundwater extraction," Policy Research Working Paper Series 5494, The World Bank.
    14. Gisser, Micha, 1983. "Groundwater: Focusing on the Real Issue," Journal of Political Economy, University of Chicago Press, vol. 91(6), pages 1001-1027, December.
    15. Khemani, Stuti, 2004. "Political cycles in a developing economy: effect of elections in the Indian States," Journal of Development Economics, Elsevier, vol. 73(1), pages 125-154, February.
    16. Gandhi, Vasant P. & N V Namboodiri, 2009. "Groundwater Irrigation in India: Gains, Costs and Risks," IIMA Working Papers WP2009-03-08, Indian Institute of Management Ahmedabad, Research and Publication Department.
    17. 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.
    18. Elinor Ostrom, 2011. "Reflections on "Some Unsettled Problems of Irrigation"," American Economic Review, American Economic Association, vol. 101(1), pages 49-63, February.
    19. John Briscoe & R.P.S. Malik, 2006. "India's Water Economy : Bracing for a Turbulent Future," World Bank Publications - Books, The World Bank Group, number 7238.
    20. Richard Hornbeck & Pinar Keskin, 2011. "The Evolving Impact of the Ogallala Aquifer: Agricultural Adaptation to Groundwater and Climate," NBER Working Papers 17625, National Bureau of Economic Research, Inc.
    21. Provencher Bill & Burt Oscar, 1993. "The Externalities Associated with the Common Property Exploitation of Groundwater," Journal of Environmental Economics and Management, Elsevier, vol. 24(2), pages 139-158, March.
    22. Gisser, Micha, 1993. "Price Support, Acreage Controls, and Efficient Redistribution," Journal of Political Economy, University of Chicago Press, vol. 101(4), pages 584-611, August.
    23. A. Hoekstra & A. Chapagain, 2007. "Water footprints of nations: Water use by people as a function of their consumption pattern," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 21(1), pages 35-48, January.
    24. World Bank, 2010. "World Development Indicators 2010," World Bank Publications - Books, The World Bank Group, number 4373.
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    Cited by:

    1. Disha Gupta, 2023. "Free power, irrigation, and groundwater depletion: Impact of farm electricity policy of Punjab, India," Agricultural Economics, International Association of Agricultural Economists, vol. 54(4), pages 515-541, July.
    2. Wolfram Schlenker, 2018. "Introduction to "Agricultural Productivity and Producer Behavior"," NBER Chapters, in: Agricultural Productivity and Producer Behavior, pages 1-9, National Bureau of Economic Research, Inc.
    3. Jin Kathrine Fosli & A. Amarender Reddy & Radhika Rani, 2021. "The Policy of Free Electricity to Agriculture Sector: Implications and Perspectives of the Stakeholders in India," Journal of Development Policy and Practice, , vol. 6(2), pages 252-269, July.
    4. Judy P. Che-Castaldo & Rémi Cousin & Stefani Daryanto & Grace Deng & Mei-Ling E. Feng & Rajesh K. Gupta & Dezhi Hong & Ryan M. McGranaghan & Olukunle O. Owolabi & Tianyi Qu & Wei Ren & Toryn L. J. Sch, 2021. "Critical Risk Indicators (CRIs) for the electric power grid: a survey and discussion of interconnected effects," Environment Systems and Decisions, Springer, vol. 41(4), pages 594-615, December.
    5. Mbiankeu Nguea, Stéphane, 2024. "Uncovering the linkage between sustainable development goals for access to electricity and access to safely managed drinking water and sanitation services," Social Science & Medicine, Elsevier, vol. 345(C).

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    More about this item

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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