Evaluation of the Financial Impact of Electricity Subsidy on the Returns of Tubewell Owners and Water Buyers Under Declining Water Tables in Balochistan, Pakistan

Syed Khair, Richard Culas, Shahbaz Mushtaq

Research output: Book chapter/Published conference paperConference paper

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Abstract

This study examines the financial impacts of electricity subsidy on tubewell ownersand water buyers, and proposes alternative subsidy policy options that could balance theefficiency and equity. The results suggest that the subsidy plays a key role in stabilisingproduction by providing financial incentives to tubewell owners to stabilise extraction cost underthe declining watertables. The removal of subsidy will have considerable financial implicationson tubewell owners, as well as water buyers. Considering the equity concerns and possiblesocial and political turmoil, in the short run the study proposes that subsidy on electricity may bereduced to 50% to avoid social unrest and political repercussions. However, in the long run, toachieve efficiency and sustainability, the study suggests: (i) adoption of more appropriatecropping patterns suitable with local climatic conditions; (ii) adoption of most suitable andhighly efficient irrigation techniques and technology; (iii) improved long-term ground watersecurity through groundwater recharge via construction of dams; and (iv) strengthening of watermarkets system and institutional infrastructure.
Original languageEnglish
Title of host publicationACE2012
Subtitle of host publication41th Proceedings
Place of PublicationAustralia
PublisherACE
Pages1-25
Number of pages25
ISBN (Electronic)9781862726956
Publication statusPublished - 2012
EventAustralian Conference of Economists - Melbourne, Australia
Duration: 08 Jul 201212 Jul 2012

Conference

ConferenceAustralian Conference of Economists
CountryAustralia
Period08/07/1212/07/12

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Evaluation
Owners
Electricity
Buyers
Water
Subsidies
Pakistan
Equity
Sustainability
Irrigation
Ground water
Financial incentives
Short-run
Dams
Institutional infrastructure
Policy options
Costs

Cite this

@inproceedings{c10ab98ddcdb479c9c1ddd0b841f50d5,
title = "Evaluation of the Financial Impact of Electricity Subsidy on the Returns of Tubewell Owners and Water Buyers Under Declining Water Tables in Balochistan, Pakistan",
abstract = "This study examines the financial impacts of electricity subsidy on tubewell ownersand water buyers, and proposes alternative subsidy policy options that could balance theefficiency and equity. The results suggest that the subsidy plays a key role in stabilisingproduction by providing financial incentives to tubewell owners to stabilise extraction cost underthe declining watertables. The removal of subsidy will have considerable financial implicationson tubewell owners, as well as water buyers. Considering the equity concerns and possiblesocial and political turmoil, in the short run the study proposes that subsidy on electricity may bereduced to 50{\%} to avoid social unrest and political repercussions. However, in the long run, toachieve efficiency and sustainability, the study suggests: (i) adoption of more appropriatecropping patterns suitable with local climatic conditions; (ii) adoption of most suitable andhighly efficient irrigation techniques and technology; (iii) improved long-term ground watersecurity through groundwater recharge via construction of dams; and (iv) strengthening of watermarkets system and institutional infrastructure.",
keywords = "Open access version available, Electricity, Financial impact, Returns, Subsidy, Watertable",
author = "Syed Khair and Richard Culas and Shahbaz Mushtaq",
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year = "2012",
language = "English",
pages = "1--25",
booktitle = "ACE2012",
publisher = "ACE",

}

Khair, S, Culas, R & Mushtaq, S 2012, Evaluation of the Financial Impact of Electricity Subsidy on the Returns of Tubewell Owners and Water Buyers Under Declining Water Tables in Balochistan, Pakistan. in ACE2012: 41th Proceedings. ACE, Australia, pp. 1-25, Australian Conference of Economists, Australia, 08/07/12.

Evaluation of the Financial Impact of Electricity Subsidy on the Returns of Tubewell Owners and Water Buyers Under Declining Water Tables in Balochistan, Pakistan. / Khair, Syed; Culas, Richard; Mushtaq, Shahbaz.

ACE2012: 41th Proceedings. Australia : ACE, 2012. p. 1-25.

Research output: Book chapter/Published conference paperConference paper

TY - GEN

T1 - Evaluation of the Financial Impact of Electricity Subsidy on the Returns of Tubewell Owners and Water Buyers Under Declining Water Tables in Balochistan, Pakistan

AU - Khair, Syed

AU - Culas, Richard

AU - Mushtaq, Shahbaz

N1 - Imported on 03 May 2017 - DigiTool details were: publisher = Australia: ACE, 2012. Event dates (773o) = 8-12 July 2012; Parent title (773t) = Australian Conference of Economists.

PY - 2012

Y1 - 2012

N2 - This study examines the financial impacts of electricity subsidy on tubewell ownersand water buyers, and proposes alternative subsidy policy options that could balance theefficiency and equity. The results suggest that the subsidy plays a key role in stabilisingproduction by providing financial incentives to tubewell owners to stabilise extraction cost underthe declining watertables. The removal of subsidy will have considerable financial implicationson tubewell owners, as well as water buyers. Considering the equity concerns and possiblesocial and political turmoil, in the short run the study proposes that subsidy on electricity may bereduced to 50% to avoid social unrest and political repercussions. However, in the long run, toachieve efficiency and sustainability, the study suggests: (i) adoption of more appropriatecropping patterns suitable with local climatic conditions; (ii) adoption of most suitable andhighly efficient irrigation techniques and technology; (iii) improved long-term ground watersecurity through groundwater recharge via construction of dams; and (iv) strengthening of watermarkets system and institutional infrastructure.

AB - This study examines the financial impacts of electricity subsidy on tubewell ownersand water buyers, and proposes alternative subsidy policy options that could balance theefficiency and equity. The results suggest that the subsidy plays a key role in stabilisingproduction by providing financial incentives to tubewell owners to stabilise extraction cost underthe declining watertables. The removal of subsidy will have considerable financial implicationson tubewell owners, as well as water buyers. Considering the equity concerns and possiblesocial and political turmoil, in the short run the study proposes that subsidy on electricity may bereduced to 50% to avoid social unrest and political repercussions. However, in the long run, toachieve efficiency and sustainability, the study suggests: (i) adoption of more appropriatecropping patterns suitable with local climatic conditions; (ii) adoption of most suitable andhighly efficient irrigation techniques and technology; (iii) improved long-term ground watersecurity through groundwater recharge via construction of dams; and (iv) strengthening of watermarkets system and institutional infrastructure.

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KW - Financial impact

KW - Returns

KW - Subsidy

KW - Watertable

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BT - ACE2012

PB - ACE

CY - Australia

ER -