Federalism versus Regional Control: Implications for Groundwater Resource in India

摘要: Policy Motivation for Research: Federal versus regional control over provision of resources can have different implications long run sustainability natural resources. Regional legislators a stronger incentive to promote growth, which lead rapid decline resource stocks. On the other hand, parties are limited contesting elections from region, and hence incentives conserve future periods. Theoretically, either these effects dominate. This paper empirically examines trade-off between short term growth conservation elected national political groundwater in India. Groundwater has become crucial input food grain production many countries including Around 38 percent world’s irrigated area is with groundwater, reliance much higher India, where sustains 60 agriculture (World Bank, 2010). irrigation Mexico, United States, Yemen, Pakistan, China, particular leading substantial levels. impose huge costs terms unmet drinking water needs declines productivity. also gender as women walk significant distances collect meeting needs. In spite benefits increasing on there no systematic empirical evidence impact federal groundwater. The objective this fill gap by providing evidence. proposes tests hypothesis that under high cost legislators, regimes because they internalize inter-temporal externalities would arise depletion resource. Using nationally representative data constituencies an increase induced reforms electricity sector, shows private competition sector leads regimes.