IMPACT OF ELECTRIC POWER SECTOR REFORMS ON FARM INCOMES IN INDIA

The supply of electricity to the agricultural sector (largely for pumping groundwater) is heavily subsidized in India. Using data from a household survey in the state of Haryana, a profit function estimated to analyze the impact of increase in tariffs accompanied by improvement in conditions of supply on farm incomes.Agricultural Finance, Resource /Energy Economics and Policy,

THE IMPACT OF CREDIT ON GROUNDWATER USE - RECENT EVIDENCE FROM INDIA

An estimate of the impact of credit constraints on groundwater use is obtained from a structural estimation of groundwater demand for Haryana, India. A switching regression model is estimated with separate equations for different groundwater technology types, which yields some interesting results. The farmers who use electric pumps are found to have a positive effect of credit constraints on groundwater use. This implies that with better access to credit, groundwater use would in fact decrease for farmers who are credit constrained. It is argued that this is a result of the electricity-pricing scheme under which farmers pay a flat price for electricity making the per unit price for groundwater very low relative to other inputs. Interestingly, the paper finds evidence that farmers who rely solely on purchased groundwater and therefore who pay full price for groundwater, have a negative impact of credit constraints: farmers who are more likely to be credit constrained demand less groundwater

DOES INEQUALITY LEAD TO GREATER EFFICIENCY IN THE USE OF LOCAL COMMONS? THE ROLE OF STRATEGIC INVESTMENTS IN CAPACITY

This paper examines the impact of inequality in access to credit on efficiency in extraction from a common resource. A dynamic model is developed, where agents strategically choose the level of sunk capacity and the consequent extraction path. Sunk capacity is a function of cost of credit and serves as a commitment device to deter entry or force exit. Contrary to previous studies based on static settings, our results show that greater inequality does not necessarily lead to greater efficiency in extraction. In particular, we show that under moderate inequality, the resource stock is lower than that under perfect equality

DOES INEQUALITY LEAD TO GREATER EFFICIENCY IN THE USE OF LOCAL COMMONS? THE ROLE OF STRATEGIC INVESTMENTS IN CAPACITY

This paper examines the impact of inequality in access to credit on efficiency in extraction from a common resource. A dynamic model is developed, where agents strategically choose the level of sunk capacity and the consequent extraction path. Sunk capacity is a function of cost of credit and serves as a commitment device to deter entry or force exit. Contrary to previous studies based on static settings, our results show that greater inequality does not necessarily lead to greater efficiency in extraction. In particular, we show that under moderate inequality, the resource stock is lower than that under perfect equality.Resource /Energy Economics and Policy,

IMPACT OF ELECTRIC POWER SECTOR REFORMS ON FARM INCOMES IN INDIA

The supply of electricity to the agricultural sector (largely for pumping groundwater) is heavily subsidized in India. Using data from a household survey in the state of Haryana, a profit function estimated to analyze the impact of increase in tariffs accompanied by improvement in conditions of supply on farm incomes

The Joint Influence of Agricultural and Nonfarm Factors on Real Estate Values: An Application to the Mid-Atlantic Region

County level farmland and residential housing values are estimated for the Mid-Atlantic region as a function of farm returns, developed land values, household incomes, population densities, and location. Results are based on the hypothesis that farmland owners anticipate land development and that nonfarm factors are important determinants of farmland prices. Response of farmland prices to change in farm returns is found to be inelastic and relatively uniform in rural and urban counties. Response to nonfarm factors is found to be more elastic and substantially greater in rural counties. Copyright 2001, Oxford University Press.