Incentives for energy-efficient irrigation: Empirical evidence of technology adoption in Andhra Pradesh, India

摘要

The Indian political economy has created a persistent subsidization regime for agricultural irrigation. Low flat-rate electricity supply for groundwater-based irrigation has led to the use of inefficient pumpset technology. There is currently no financial incentive for farmers to improve energy efficiency through demand side measures. However, both farmers and distribution utilities incur costs through the frequent burnout of pumpsets and distribution transformers. Thus, demand side measures that reduce equipment damage while simultaneously improving energy efficiency can be a viable option under the given subsidization regime. An econometric analysis indicates that energy-efficient pumpsets and the use of capacitors can reduce the frequency of equipment burnouts. However, standard-approved pumpsets can also create detrimental effects under low power quality conditions, counteracting efforts to improve energy efficiency. A crucial constraint for any further deployment of demand side measures is the improvement of power quality, which requires concerted action to overcome coordination failure.