This article has addressed the problem of overexploitation of ground water for irrigation and built up a theoretical model to demonstrate how crop diversification in favour of water-saving crops can help conservation of water resource and agricultural growth. The comparative dynamic analysis on the optimal path of ground water stock has been done using variational differential equation. The qualitative results in Phase-Diagram show that if R&D expenditure is increased by the government or input subsidy and price support is increased for less water-intensive crops, water conservation will increase in a dynamic perspective.
BhullarA.S.SidhuR.S. (2006). Integrated land and water use—A case study of Punjab. Economic and Political Weekly, 41(52), 5353–5357.
2.
CaputoM.R. (1990). A qualitative characterisation of the competitive non-renewable resource extracting firm. Journal of Environmental Economics and Management, 18(3), 206–226.
3.
ChiangA.C. (1992). Elements of dynamic optimisation. New York: McGraw Hill Inc.
4.
CMIE. (2010). Centre For Monitoring Indian Economy. March.
5.
DorfmanR. (1969). An economic interpretation of optimal control theory. American Economic Review, 59(5), 817–831.
6.
FanS.PardeyP.G. (1997). Research, productivity and output growth in chinese agriculture. Journal of Development Economics, 53(1), 115–137.
7.
GaleD.NikaidoH. (1965). The Jacobian matrix and global univalence of mappings. Mathematische Annalen, 159(2), 81–93.
8.
GoetzR.U. (1997). Diversification in agricultural production: A dynamic model of cropping to manage soil erosion. American Journal of Agricultural Economics, 79(2), 341–356.
9.
GrilichesZ. (1958). Research cost and social return: Hybrid corn and related innovations. Journal of Political Economy, 66(5), 414–431.
10.
GrilichesZ. (1964). Research expenditures, education and the aggregate agricultural production function. American Economic Review, 54(6), 961–974.
11.
KamienM.I.SchwartzN.L. (1981). Dynamic optimisation—The calculus of variations and optimal control in economics and management. Series Vol. 4. North Holland.
12.
OnikiH. (1973). Comparative dynamics (sensitivity analysis) in optimal control theory. Journal of Economic Theory, 6(3), 265–283.
13.
PingaliP.L. (1997). From subsistence to commercial production system: The transformation of Asian agriculture. American Journal of Agricultural Economics, 79(2), 628–634.
14.
RamasamyC. (2004). Constraints to growth in Indian agriculture: Needed technology, resource management and trade strategies. Indian Journal of Agricultural Economics, 159(3), 1–41.
15.
RaoC.H.H. (2002). Sustainable use of water for irrigation in Indian agriculture. Economic and Political Weekly, 37(18), 1742–1745.
16.
RosegrantM.W.SombillaM.A. (1997). Critical issues suggested by trends in food, population and environment to the year 2020. American Journal of Agricultural Economics, 79(5), 1467–1470.
17.
SasmalJ. (2006). Extraction of ground water and sustainable agricultural growth: A comparative dynamic analysis in Indian context. Paper presented at the international conference on ‘Economics of Poverty, Environment and Natural Resource Use’, Wageningen, The Netherlands.
18.
SasmalJ. (2012). Resource and technology as constraints to growth in agriculture: The Indian experience. Conference of the International Journal of Arts & Sciences, Paris, France, 5(3), 57–70.
19.
ShahF.A.ZilbermanD.ChakrabortyU. (1995). Technology adoption in the presence of an exhaustible resource: The case of ground water extraction. American Journal of Agricultural Economics, 77(2), 291–299.
20.
SidhuH.S. (2002). Crisis in agrarian economy in Punjab—Some urgent steps. Economic and Political Weekly, 37(30), 3132–3138.
21.
SinghB. (1992). Groundwater resources and agricultural development strategy: Punjab experience. Indian Journal of Agricultural Economics, 47(1), 105–113.
22.
SinghS. (2000). Crisis in Punjab agriculture. Economic and Political Weekly, 35(23), 1889–1892.
23.
SteinbergA.M.StalfordH.L. (1973). On existence of optimal controls. Journal of Optimisation Theory and Applications, II(3), 266–273.
24.
SwantS.D. (1997). Performance of Indian agriculture with special reference to regional variations. Indian Journal of Agricultural Economics, 52(3), 353–373.
25.
ThirtleC.LinL.PiesseJ. (2003). The impact of research-led productivity growth on poverty reduction in Africa, Asia and Latin America. World Development, 31(12), 1959–1975.
