Department of Agricultural and Resource Economics
University of California, Davis
One Shields Avenue
Davis, CA 95616
Institutional Affiliation: University of California at Davis
NBER Working Papers and Publications
|September 2018||Electricity Prices, Groundwater, and Agriculture: The Environmental and Agricultural Impacts of Electricity Subsidies in India|
with Reena Badiani-Magnusson
in Agricultural Productivity and Producer Behavior, Wolfram Schlenker, editor
In this paper we estimate the effect of agricultural electricity subsidies in India on groundwater extraction and agricultural output. Our empirical approach exploits changes in state electricity prices over time controlling for aggregate annual shocks and fixed district unobservables. Electricity subsidies meaningfully increase groundwater extraction, where the implied extensive margin price elasticity is -0.18. This subsidy-induced change in groundwater extraction impacted agricultural output and crop composition, increasing the value of water-intensive output and the area on which these crops are grown. These subsidies also increase the probability of groundwater exploitation, suggesting that they may come at an unintended and long-term environmental cost.
|August 2012||Knowledge is (Less) Power: Experimental Evidence from Residential Energy Use|
with David Rapson: w18344
This paper presents experimental evidence that information feedback dramatically increases the price elasticity of demand in a setting where signals about quantity consumed are traditionally coarse and infrequent. In a randomized controlled trial, residential electricity customers are exposed to price increases, with some households also receiving displays that transmit high-frequency information about usage and prices. This substantially lowers information acquisition costs and allows us to identify the marginal information effect. Households only experiencing price increases reduce demand by 0 to 7 percent whereas those also exposed to information feedback exhibit a usage reduction of 8 to 22 percent, depending on the amount of advance notice. The differential response across treatments ...
Published: Katrina Jessoe & David Rapson, 2014. "Knowledge Is (Less) Power: Experimental Evidence from Residential Energy Use," American Economic Review, American Economic Association, vol. 104(4), pages 1417-38, April. citation courtesy of