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Targeting Technology to Increase Smallholder Profits and Conserve Resources: Experimental Provision of Laser Land-Leveling Services to Indian Farmers

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  • Travis J. Lybbert
  • Nicholas Magnan
  • David J. Spielman
  • Anil K. Bhargava
  • Kajal Gulati

Abstract

With heterogeneous demand and consumption externalities, market segmentation and targeting can improve social welfare. We use a selective trial for laser land leveling (LLL) in India to understand such targeting strategies. We elicit farmer demand for and benefits from LLL services. LLL reduces groundwater extraction by 24%, with comparable fuel savings from reduced pumping. To leverage positive externalities, we combine farmer demand, LLL pumping effects, and service provider costs to evaluate the cost-effectiveness and other impacts of potential targeting strategies. A first-hour LLL discount—a second-degree price discrimination strategy—emerges as the most cost-effective targeting strategy for reducing groundwater extraction.

Suggested Citation

  • Travis J. Lybbert & Nicholas Magnan & David J. Spielman & Anil K. Bhargava & Kajal Gulati, 2018. "Targeting Technology to Increase Smallholder Profits and Conserve Resources: Experimental Provision of Laser Land-Leveling Services to Indian Farmers," Economic Development and Cultural Change, University of Chicago Press, vol. 66(2), pages 265-306.
    • Handle: RePEc:ucp:ecdecc:doi:10.1086/695284
    DOI: 10.1086/695284
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    Citations

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    Cited by:

    1. Hira Channa & Jacob Ricker‐Gilbert & Hugo De Groote & Jonathan Bauchet, 2021. "Willingness to pay for a new farm technology given risk preferences: Evidence from an experimental auction in Kenya," Agricultural Economics, International Association of Agricultural Economists, vol. 52(5), pages 733-748, September.
    2. Shapiro, Jeremy, 2019. "The impact of recipient choice on aid effectiveness," World Development, Elsevier, vol. 116(C), pages 137-149.
    3. Gunther Bensch & Jörg Peters, 2020. "One‐Off Subsidies and Long‐Run Adoption—Experimental Evidence on Improved Cooking Stoves in Senegal," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(1), pages 72-90, January.
    4. P. K. Viswanathan & K. Kavya & Chandra Sekhar Bahinipati, 2020. "Global Patterns of Climate-resilient Agriculture: A Review of Studies and Imperatives for Empirical Research in India," Review of Development and Change, , vol. 25(2), pages 169-192, December.
    5. Junying Lin & Songqing Jin & Hongdong Guo, 2023. "Do outsourcing services provided by agricultural cooperatives affect technical efficiency? Insights from tobacco farmers in China," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(3), pages 781-804, September.
    6. Shukla, Pallavi & Pullabhotla, Hemant K. & Baylis, Kathy, 2023. "The economics of reducing food losses: Experimental evidence from improved storage technology in India," Food Policy, Elsevier, vol. 117(C).
    7. Astrid Mastenbroek & Irma Sirutyte & Robert Sparrow, 2021. "Information Barriers to Adoption of Agricultural Technologies: Willingness to Pay for Certified Seed of an Open Pollinated Maize Variety in Northern Uganda," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(1), pages 180-201, February.
    8. Bahinipati, Chandra Sekhar & Viswanathan, P.K., 2019. "Incentivizing resource efficient technologies in India: Evidence from diffusion of micro-irrigation in the dark zone regions of Gujarat," Land Use Policy, Elsevier, vol. 86(C), pages 253-260.
    9. Jonathan Bauchet & Stacy Prieto & Jacob Ricker‐Gilbert, 2021. "Improved Drying and Storage Practices that Reduce Aflatoxins in Stored Maize: Experimental Evidence from Smallholders in Senegal," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(1), pages 296-316, January.
    10. Herrington, Caitlin L. & Maredia, Mywish K. & Ortega, David L. & Reyes, Byron A., 2023. "The Impact of Endogenous and Exogenous Factors on Farmer Willingness-to-Pay for Biofortified Bean Seed: A Field Experiment in Rural Zimbabwe," 2023 Annual Meeting, July 23-25, Washington D.C. 335918, Agricultural and Applied Economics Association.
    11. Gulati, Kajal & Lybbert, Travis J. & Spielman, David J., 2017. "Diffusing to level fields: Evolution of laser land leveling technology markets in India," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258387, Agricultural and Applied Economics Association.
    12. Channa, Hira & Chen, Amy Z. & Pina, Patricia & Ricker-Gilbert, Jacob & Stein, Daniel, 2019. "What drives smallholder farmers’ willingness to pay for a new farm technology? Evidence from an experimental auction in Kenya," Food Policy, Elsevier, vol. 85(C), pages 64-71.
    13. Lisa Capretti, 2023. "Technology adoption constraints and Laser Land Levelling: evidence from Karnataka, India," Working Papers 1/23, Sapienza University of Rome, DISS.
    14. Vasilaky, Kathryn & Harou, Aurélie & Alfredo, Katherine & Kapur, Ishita, 2023. "What works for water conservation? Evidence from a field experiment in India," Journal of Environmental Economics and Management, Elsevier, vol. 119(C).

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