Overexploitation of Ground Water Can Be Overcome by Correctly Pricing Electricity and Diesel
Box 9.5.1 in Morris, Sebastian (ed.), India Infrastructure Report 2001 - Issues in Market Structure and Regulation, 3inetwork, Oxford Univ Press, New Delhi, 2001.
2 Pages Posted: 27 Nov 2012
Date Written: January 1, 2001
Develops a simple model to show that mispricing of electricity -at nearly zero usage prices - is the principal reason for overdrawl of ground water and social waste in subsidising of agriculure in India, and how direct subsidies could overcome the same.
Keywords: India, Gujarat, Rajasthan, Agriculture, Ground Water, Electricity, Oil, Pricing, Subsidy, Public Policy, Utilities, Infrastructure, Reform
JEL Classification: Q1, Q4, H4, L94, L95
Suggested Citation: Suggested Citation