Journal Article

Evaluation of Price Policy in the Presence of Water Theft

Isha Ray and Jeffrey Williams

in American Journal of Agricultural Economics

Published on behalf of Agricultural and Applied Economics Association

Volume 81, issue 4, pages 928-941
Published in print November 1999 | ISSN: 0002-9092
Published online November 1999 | e-ISSN: 1467-8276 | DOI: http://dx.doi.org/10.2307/1244335
Evaluation of Price Policy in the Presence of Water Theft

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Mathematical programming models of “representative” farms are commonly used to evaluate policies such as input subsidies and output price supports. On canals in India, upstream farmers routinely use more irrigation water than allotted. In such circumstances, the programming model should encompass farmers' locational heterogeneity. Here, a representative watercourse with thirty farms is calibrated to the eight crops, fifteen irrigation turns, yield responses to water, and seepage in Maharashtra. Not only does water “theft” increase the social cost of price policies, but the policies' increased inducement to theft by upstream farmers leaves those downstream with less water and lower incomes.

Keywords: canal irrigation; India; mathematical programming; price policy; K420; O130; Q150; Q180

Journal Article.  0 words. 

Subjects: Law and Economics ; Agricultural Economics ; Economic Development

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