5781. Farmer's Willingness to Pay for Power in India
- Author:
- Rafiq Dossani and V. Ranganathan
- Publication Date:
- 07-2003
- Content Type:
- Working Paper
- Institution:
- Walter H. Shorenstein Asia-Pacific Research Center
- Abstract:
- Electric power for rural pumpset usage is subsidized by all the states in India, the subsidy being estimated at 1.1 percent of GDP. Users are charged a highly subsidized, flat, annual fee that varies with pumpset size. This fixed charge has encouraged waste and raised subsidies over time. Unwilling to bear these costs any longer, states have proposed a range of strategies, including independent regulation, metering of agricultural pumpsets, and raising prices.
- Topic:
- Economics and Government
- Political Geography:
- South Asia and India