Way down in the hole: Adaptation to long-term water loss in rural India

David Blakeslee, Ram Fishman, Veena Srinivasan

Research output: Contribution to journalArticle

Abstract

Worsening environmental conditions threaten to undermine progress in reducing rural poverty. Little is known, however, about the prospects for farmer adaptations to mitigate this threat, in particular through opportunities for income diversification presented by recent non-agricultural growth. We study the effects of increasing water scarcity in India using quasi-random, geologically determined differences in access to groundwater. The drying up of wells results in a precipitous and persistent decline in farm income and wealth, with little evidence of agricultural adaptation. However, labor reallocation to off-farm employment appears successful in maintaining overall income, particularly in locations with a more developed manufacturing sector.

Original languageEnglish (US)
Pages (from-to)200-224
Number of pages25
JournalAmerican Economic Review
Volume110
Issue number1
DOIs
StatePublished - Jan 2020

ASJC Scopus subject areas

  • Economics and Econometrics

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