Agricultural Trade, Institutions, and Depletion of Natural Resources

Sheetal Sekhri and Paul Landefeld ()

Virginia Economics Online Papers from University of Virginia, Department of Economics

Abstract: Globalization can lead to either conservation or depletion of natural resources that are used in the production of traded goods. Rising prices may lead to better resource man- agement. Alternatively, stronger incentives to extract these resources may exacerbate their decline- especially in open access institutional frameworks. We examine the impact of agricultural trade promotion on the groundwater extraction in India using nationally representative data from 1996-2005. We nd evidence that trade promotion leads to de- pletion of groundwater reserves. Access to world markets does not result in emergence of institutions that would enable protection of the resource.

Keywords: Groundwater Depletion; Agricultural Trade (search for similar items in EconPapers)
JEL-codes: O13 Q25 Q56 (search for similar items in EconPapers)
Pages: 60 pages
Date: 2013-09
New Economics Papers: this item is included in nep-agr, nep-env, nep-int and nep-res
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Persistent link: https://EconPapers.repec.org/RePEc:vir:virpap:405

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