Unintended consequences of Indian groundwater preservation law on crop residue burning

Abstract

This paper examines the unintended consequences of a policy aimed at improving the groundwater level on crop residue burning in India. The Preservation of Subsoil Water Act, 2009 implemented in two Indian states bans the transplantation of paddy before mid-June to preserve groundwater. Theoretically, this leaves a short window of time for clearing the field before the next crop and thus increases the likelihood of farmers adopting time-saving methods like crop residue burning. Using a difference-in-difference framework we find that the ban results in both delay and an increase in crop residue burning in the winter months.