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Ineficient water pricing and incentives for conservation

Chakravorty, Ujjayant, Dar, Manzoor H. and Emerick, Kyle (2019) Ineficient water pricing and incentives for conservation. TSE Working Paper, n. 19-997, Toulouse

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Abstract

We use two randomized controlled trials in Bangladesh to study a simple water
conservation technology for rice production called "Alternate Wetting and Drying (AWD)." Despite proven results in agronomic trials, our first experiment shows that
AWD only saves water and increases profits in villages where farmers pay a marginal price for water, but not when they pay fixed seasonal charges. The second RCT randomly distributed debit cards that can be used to pay volumetric prices for irrigation
water. This low-cost, scalable intervention causes farmers to place more value on the water-saving technology. Demand for the technology becomes less price-sensitive.

Item Type: Monograph (Working Paper)
Language: English
Date: March 2019
Place of Publication: Toulouse
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Institution: Université Toulouse Capitole
Site: UT1
Date Deposited: 19 Mar 2019 13:59
Last Modified: 19 Mar 2019 13:59
OAI ID: oai:tse-fr.eu:122864
URI: http://publications.ut-capitole.fr/id/eprint/32174

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