Understanding Farmers' Policy Preferences for Solar Powered Irrigation Systems in Karnataka, India: A Choice Experiment Approach

Korekallu Srinivasa Aditya and Mithöfer Dagmar

No 344382, IAAE 2024 Conference, August 2-7, 2024, New Delhi, India from International Association of Agricultural Economists (IAAE)

Abstract: Solar-Powered Irrigation Systems (SPIS) are an important component of India’s effort towards sustainable energy transition and are promoted with financial support under the PM-KUSUM program. In spite of the promise and the policy push, the adoption of SPIS is low. In this paper, we use the Discrete Choice Experiment (DCE) for evaluating the policy attributes in the promotion of SPIS. We selected five attributes of SPIS with different levels for the choice experiment, and a ‘D-efficient’ non-zero prior choice experimental design was used. The data was collected from 500 farmers randomly chosen from 31 villages across Mysore district, Karnataka, India, and analyzed using the random parameter logit model. For a nuanced interpretation and contextualization of the results, follow-up qualitative interviews were conducted. The results highlight that farmers preference, as indicated by the highest part worth, is for a loan with a repayment holiday of three years, followed by guaranteed service provision for 10 years. Given that SPIS is a new technology with a high initial investment, easing liquidity constraints and assuring farmers with guaranteed repair services act as strong incentives to adopt it. These findings can be incorporated into the existing policies so that they align well with farmers' preferences.

Keywords: Environmental; Economics; and; Policy (search for similar items in EconPapers)
Pages: 24
Date: 2024-07-26
New Economics Papers: this item is included in nep-dcm, nep-env and nep-exp
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Persistent link: https://EconPapers.repec.org/RePEc:ags:cfcp15:344382

DOI: 10.22004/ag.econ.344382

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