Crop-Diversification for Conservation of Water Resource and Agricultural Growth: A Comparative Dynamic Analysis

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.JEL Classification: Q32 Q38, Q25, O13