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

See all articles by Sebastian Morris

Sebastian Morris

Indian Institute of Management, Ahmedabad - Economics; Goa Institute of Management

Date Written: January 1, 2001

Abstract

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

Morris, Sebastian, Overexploitation of Ground Water Can Be Overcome by Correctly Pricing Electricity and Diesel (January 1, 2001). 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., Available at SSRN: https://ssrn.com/abstract=2180108 or http://dx.doi.org/10.2139/ssrn.2180108

Sebastian Morris (Contact Author)

Indian Institute of Management, Ahmedabad - Economics ( email )

Vastrapur
Ahmedabad 380015, Gujarat
India
+919824232121 (Phone)

HOME PAGE: http://sebastianmorris.org/

Goa Institute of Management ( email )

Ribandar
Ribandar
Panaji, Goa 403006
India

HOME PAGE: http://sebastianmorris.org/

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