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Raising Agricultural Productivity, Reducing Groundwater Use and Mitigating Carbon Emissions: Role of Energy Pricing in Farm Sector

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  • Kumar, Dinesh M.

Abstract

The growing dependence of India’s farm sector on groundwater threatens water resources sustainability and power sector viability. Sustaining India’s rising prosperity rests on managing groundwater. This study shows that raising power tariffs in the farm sector to achieve efficiency and sustainability of groundwater use is both socially and economically viable. The farmers, who are confronted with positive marginal cost of electricity and groundwater, obtain higher water productivity in their farming operations (Rs./m3 of water), use less amount of groundwater per unit area of farm (m3/ha), yet secure higher net return per unit of land (Rs./ha of land).This paper shows that establishing an energy quota for farms based on groundwater sustainability considerations, and metering and charging for power on pro rata basis using pre-paid meters are the best options to manage groundwater and the energy economy. The social benefit of reduced carbon emission, achievable through efficient electricity pricing, was estimated to be Rs. 709 crore per annum.

Suggested Citation

  • Kumar, Dinesh M., 2013. "Raising Agricultural Productivity, Reducing Groundwater Use and Mitigating Carbon Emissions: Role of Energy Pricing in Farm Sector," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 68(3), pages 1-17.
    • Handle: RePEc:ags:inijae:206335
    DOI: 10.22004/ag.econ.206335
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    References listed on IDEAS

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    1. Kumar, M. Dinesh & Malla, A. K. & Tripathy, S. K., 2008. "Economic value of water in agriculture: comparative analysis of a water-scarce and water-rich region in India," Conference Papers h041895, International Water Management Institute.
    2. Kumar, M. Dinesh, 2009. "Opportunities and constraints to improving water productivity in India," Book Chapters,, International Water Management Institute.
    3. Kumar, M. Dinesh & Amarasinghe, Upali A., 2009. "Water productivity improvements in Indian agriculture: potentials, constraints and prospects," IWMI Books, Reports H042634, International Water Management Institute.
    4. 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.
    5. Kumar, M. Dinesh & Amarasinghe, Upali A., 2009. "Strategic Analyses of the National River Linking Project (NRLP) of India, Series 4. Water productivity improvements in Indian agriculture: potentials, constraints and prospects," IWMI Books, Reports H042633, International Water Management Institute.
    6. Kumar, M. Dinesh, 2009. "Opportunities and constraints to improving water productivity in India," IWMI Books, Reports H042640, International Water Management Institute.
    7. World Bank, 2010. "Deep Wells and Prudence : Towards Pragmatic Action for Addressing Groundwater Overexploitation in India," World Bank Publications - Reports 2835, The World Bank Group.
    8. Kumar, M. Dinesh & Amarasinghe, Upali A., 2009. "Water productivity improvements in Indian agriculture: potentials, constraints and prospects," Book Chapters,, International Water Management Institute.
    9. Kumar, M. Dinesh & Amarasinghe, Upali A. (ed.), 2009. "Strategic Analyses of the National River Linking Project (NRLP) of India, Series 4. Water productivity improvements in Indian agriculture: potentials, constraints and prospects," IWMI Books, International Water Management Institute, number 113504.
    10. Kumar, M. D. & Amarasinghe, Upali A. & Sharma, Bharat R. & Trivedi, Kairav & Singh, O. P. & Sikka, Alok K. & van Dam, Jos C., 2009. "Water productivity improvements in Indian Agriculture: potentials, constraints and prospects," IWMI Conference Proceedings 260570, International Water Management Institute.
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