Watershed externalities, shifting cropping patterns and groundwater depletion in Indian semi-arid villages: the effect of alternative water pricing policies

    Shiferaw, B and Reddy, V R and Wani, S P (2008) Watershed externalities, shifting cropping patterns and groundwater depletion in Indian semi-arid villages: the effect of alternative water pricing policies. Ecological Economics, 67 (2). pp. 327-340.

    [img] PDF
    Restricted to ICRISAT users only
    Download (902kB) | Request a copy

    Abstract

    Frequent droughtsand groundwater depletionare critical constraints toimprovingagricultural productivity in the semi-arid tropics. India has been promoting integrated watershed management in drought-prone areas to address these constraints. Watershed communities are being assisted to invest in groundwater re-charging facilities.While communities and the public bear such costs, individual farmers capture irrigation benefits. Groundwater is a free common property resource and land users hold de-facto use rights. This has accelerated private irrigation investments and depletion of aquifers resulting in iniquitous distribution of irrigation water. Power subsidies and negligible pumping costs aggravate the problem. These policy failuresand lowirrigationcosts to farmers are displacingwater-efficient crops in favor of water-intensive crops in water-scare areas. The paper reviews the village-level externalities that aggravate groundwater depletion and evaluates potential policy options to enhance local collective action in water management. Using 3SLS, an econometric crop-water productivity model is used to evaluate alternative water policy instruments. The results indicate that different types of water user charges can be introduced with modest consequences on profitability and farm incomes. If properly implemented and managed by the local communities, pro-poor policies could bring considerable sustainability benefits and also ensure enhanced equity in access to the resource.

    Item Type: Article
    Divisions: UNSPECIFIED
    CRP: UNSPECIFIED
    Subjects: Others > Watershed Management
    Depositing User: Library ICRISAT
    Date Deposited: 07 Oct 2011 07:29
    Last Modified: 07 Oct 2011 07:29
    URI: http://oar.icrisat.org/id/eprint/718
    Official URL: http://dx.doi.org/10.1016/j.ecolecon.2008.05.011
    Projects: UNSPECIFIED
    Funders: UNSPECIFIED
    Acknowledgement: UNSPECIFIED
    Links:
    View Statistics

    Actions (login required)

    View Item View Item
    OAR@ICRISAT is powered by EPrints 3 which is developed by the School of Electronics and Computer Science at the University of Southampton. More information and software credits.