Power Tariff Policy for Groundwater Regulation: Efficiency, Equity and Sustainability

In the recent years, increasing importance is being given to the study of the influence of power tariff policy on the groundwater use and exploitation as the existing regulations relating to groundwater exploitation could not make desirable impoct. It is argued that appropriate power tariff policy can be used as a tool to control the over-exploitation of groundwater and consumption of electricity. In this context, this paper critically evaluates how effective is power tariff policy as an instrument for groundwater regulation and power utilisation based on theoretical reasoning and practical considerations. The paper concludes that the tariff policy can be an effective tool only if combined with other policy.