This paper introduces a theoretical model to examine farmers’ response to changes in power tariff and water allocation regimes vis-a-vis energy and groundwater use. The author begins by explaining the context as one where the existing direct & indirect regulations and direct management interventions have been ineffective in arresting groundwater depletion. Also, there is an absolute paucity of sufficient empirical data to compare and analyze the differential impacts of different levels of pricing of electricity, and groundwater rights allocations on water and energy productivity.
The paper presents a review of farm sector pricing theories and thereafter analyses the potential impact of different modes of electricity pricing on productivity of groundwater use.Read More
