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Economics of Groundwater Irrigation in Nepal: Some Farm-Level Evidences

Published online by Cambridge University Press:  28 April 2015

Humnath Bhandari  and
Sushil Pandey
Humnath Bhandari
Affiliation:
Social Sciences Division, International Rice Research Institute, Philippines
Sushil Pandey
Affiliation:
Social Sciences Division, International Rice Research Institute, Philippines
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Abstract

This article examines the economics of groundwater irrigation and shallow tubewell (STW) ownership decision making, using farm-level data collected from 324 households in Nepal. STW irrigation generated a significant positive effect on rice yield and farmers' incomes. Based on a probit model, the farm size, land fragmentation, access to electricity, and access to credit were found to significantly influence farmers' decisions to own STWs. Although the water market benefited poor farmers, it is too small and monopolistic. Policy reforms needed to make groundwater accessible to the poor majority include effective credit programs, investments in rural electrification, and public sector support for promoting suitable pumping technologies.

Keywords

groundwater irrigationprobit modelshallow tubewellC25O33
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 38 , Issue 1 , April 2006 , pp. 185 - 199
Copyright
Copyright © Southern Agricultural Economics Association 2006

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