Burlig, Fiona; Preonas, Louis; Woerman, Matt - National Bureau of Economic Research - 2021
consequences. This paper provides the first large-scale empirical estimates of how farmers respond to changes in groundwater costs … variation in the price of electricity, a key input into groundwater extraction, we find that farmers are very price responsive … switching and fallowing are the main channel through which farmers respond to increases in groundwater costs. Using a static …
