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Project Citation: 

Chakravorty, Ujjayant, Dar, Manzoor H., and Emerick, Kyle. Data and Code for: Inefficient water pricing and incentives for conservation. Nashville, TN: American Economic Association [publisher], 2022. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2022-12-08. https://doi.org/10.3886/E147781V1

Project Description

Summary:  View help for Summary Farmers often buy water using fixed fees --- rather than with marginal prices. We use two randomized controlled trials in Bangladesh to study the relationship between marginal prices, adoption of a water-saving technology, and water usage. Our first experiment shows that the technology only saves water when farmers face marginal prices. Our second experiment finds that an encouragement to voluntarily convert to hourly pumping charges does not save water. Taken together, efforts to conserve water work best when farmers face marginal prices, but simply giving an option for marginal pricing is insufficient to trigger water-saving investments and reduced irrigation demands. 
Funding Sources:  View help for Funding Sources International Initiative for Impact Evaluation (DPW1/1081)

Scope of Project

Subject Terms:  View help for Subject Terms Water Pricing; Randomized Controlled Trials
JEL Classification:  View help for JEL Classification
      O13 Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
      Q25 Renewable Resources and Conservation: Water
Geographic Coverage:  View help for Geographic Coverage Bangladesh
Time Period(s):  View help for Time Period(s) 11/1/2016 – 6/15/2018


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