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Levels of Technical, Allocative, and Groundwater Use Efficiency and the Factors Affecting the Allocative Efficiency of Wheat Farmers in Pakistan

Author

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  • Sobia Asghar

    (School of Environment, Resources and Development, Asian Institute of Technology, P.O. Box 4, Khlong Luang, Pathumthani 12120, Thailand)

  • Nophea Sasaki

    (School of Environment, Resources and Development, Asian Institute of Technology, P.O. Box 4, Khlong Luang, Pathumthani 12120, Thailand)

  • Damien Jourdain

    (School of Environment, Resources and Development, Asian Institute of Technology, P.O. Box 4, Khlong Luang, Pathumthani 12120, Thailand
    G-EAU, University Montpellier, AgroParisTech, CIRAD, IRD, IRSTEA, Montpellier SupAgro, 34093 Montpellier, France)

  • Takuji W. Tsusaka

    (School of Environment, Resources and Development, Asian Institute of Technology, P.O. Box 4, Khlong Luang, Pathumthani 12120, Thailand)

Abstract

In Pakistan, excessive lowering of the groundwater table has made crop irrigation costlier and without improving production efficiency, Pakistan’s rural economy will be adversely affected. This study estimated the technical, allocative, and groundwater use efficiency of wheat producers, identified the factors affecting their allocative efficiency, and suggested policy implications from these results. The data were collected from 84 tubewell owners, 65 tubewell shareholders, and 75 water buyers. The technical, allocative, and groundwater use efficiency were estimated by the Data Envelopment Analysis (DEA) method, and the important factors affecting the allocative efficiency were identified by two-limit tobit regression analysis. The results highlighted that the tubewell owners, tubewell shareholders, and water buyers had above 90% technical and groundwater use efficiency. However, allocative efficiency was substantially lower for all groups, indicating that wheat production costs could be significantly reduced by the optimal allocation of inputs. The allocative efficiency of wheat farmers decreased significantly with the increasing capacity of the tubewells, with the sharing of tubewells, and with the use of tractor-operated tubewells. The results imply that wheat farmers should be provided with technical and decision-making support to select an appropriate tubewell system that minimises their cost of production and improves their allocative efficiency. Furthermore, the resource allocation system of tubewell shareholders should be further studied to improve the allocative efficiency of wheat farmers.

Suggested Citation

  • Sobia Asghar & Nophea Sasaki & Damien Jourdain & Takuji W. Tsusaka, 2018. "Levels of Technical, Allocative, and Groundwater Use Efficiency and the Factors Affecting the Allocative Efficiency of Wheat Farmers in Pakistan," Sustainability, MDPI, vol. 10(5), pages 1-22, May.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:5:p:1619-:d:147308
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    2. Gulraiz Akhter & Yonggang Ge & Naveed Iqbal & Yanjun Shang & Muhammad Hasan, 2021. "Appraisal of Remote Sensing Technology for Groundwater Resource Management Perspective in Indus Basin," Sustainability, MDPI, vol. 13(17), pages 1-12, August.
    3. Imran, Muhammad Ali & Ali, Asghar & Ashfaq, Muhammad & Hassan, Sarfraz & Culas, Richard & Ma, Chunbo, 2019. "Impact of climate smart agriculture (CSA) through sustainable irrigation management on Resource use efficiency: A sustainable production alternative for cotton," Land Use Policy, Elsevier, vol. 88(C).
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    5. Akbar Khan Khajjak & Tehmina Mangan, 2022. "Factors Influencing Water Saving Measures and Water-Use Efficiency of Wheat Growers in Sindh, Pakistan," Journal of Economic Impact, Science Impact Publishers, vol. 4(2), pages 115-123.
    6. Akbar Khan Khajjak & Tehmina Mangan & Habibullah Magsi & Aijaz Ali Khooharo, 2022. "Exploring the Inefficient Groundwater Use by Wheat Farmers: An Evidence from Sindh, Pakistan," Journal of Economic Impact, Science Impact Publishers, vol. 4(2), pages 22-31.
    7. Yusuf Tanko & Kang Cheah Yong & Rabiul Islam, 2020. "Economic Efficiency of Farm Size, Fertilizer, and Improve seeds on Rice Production in Kano State, Nigeria," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 6(2), pages 21-32, June.
    8. Lindikaya W. Myeki & Nkhanedzeni B. Nengovhela & Livhuwani Mudau & Elvis Nakana & Simphiwe Ngqangweni, 2022. "Estimation of Technical, Allocative, and Economic Efficiencies for Smallholder Broiler Producers in South Africa," Agriculture, MDPI, vol. 12(10), pages 1-14, October.
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