what is the impact of electricity in agriculture
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Electricity subsidies increase groundwater extraction, where the estimated elasticity is -0.13, and the production of water intensive crops, particularly rice. We find that they operate through the extensive margin by expanding the area on which water intensive crops are cultivated.
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The spread of electricity in palampur transformed the system of irrigation in the village persian wheels gave way to electric-run tube wells, which reduced the dependence of the farmers upon rainfall.
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