Micro-irrigation is a promising tool for increasing energy and water efficiency. However, despite its efficiency, adoption of the technology remains low. This project investigates the roles of 2 main explanations for this phenomena and suggest their appropriate policy implications. The research studies the effect of (i) environmental and grid externalities and (ii) investment inefficiencies on adoption of energy-efficient technologies. By implementing 2 interventions, conservation credits and investment subsidies, in a randomized control trial among farmers in India, the researchers aim to learn how farmers respond to these policies, which type of incentives are more effective, and what the optimal role is for policy.
This work is part of the International Growth Centre’s ‘Promoting Energy and Water Efficiency in Irrigation Through Direct and Indirect Incentives’ project
Nick Hagerty, Ariel Zucker (2018) Conservation Credits: A Pilot of Financial Incentives to Reduce Groundwater Use in Smallholder Agriculture. IGC. Reference E-89456-INC-1
Published 1 December 2018