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Rule-of-Thumb Instructions to Improve Fertilizer Management: Experimental Evidence from Bangladesh

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  • Mahnaz Islam
  • Sabrin Beg

Abstract

Heavy government subsidies have led to inefficient application and overuse of fertilizer in Bangladesh. This results in above-optimal costs to farmers as well as to the environment and the public. In a randomized controlled trial, we provide farmers with a simple tool (a leaf color chart) and basic, rule-of-thumb instructions to guide the timing and quantity of urea (nitrogen) application. Treatment farmers reduce urea use by 8% without compromising yield, suggesting significant scope for improving urea management. The results are mainly driven by farmers delaying urea application as returns to urea are low early on in the season and urea applied is likely to be wasted. Cost-effectiveness estimates suggest that each dollar spent on this intervention produces a return of US$2.8 due to reduction of urea use over three seasons, as well as significant environmental benefits. We also find suggestive evidence that optimizing the timing of urea application affects farmers’ yields, plausibly as the intervention allows farmers to reallocate urea application to times when returns to urea are highest.

Suggested Citation

  • Mahnaz Islam & Sabrin Beg, 2021. "Rule-of-Thumb Instructions to Improve Fertilizer Management: Experimental Evidence from Bangladesh," Economic Development and Cultural Change, University of Chicago Press, vol. 70(1), pages 237-281.
    • Handle: RePEc:ucp:ecdecc:doi:10.1086/711174
    DOI: 10.1086/711174
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    References listed on IDEAS

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    1. Esther Duflo & Michael Kremer & Jonathan Robinson, 2011. "Nudging Farmers to Use Fertilizer: Theory and Experimental Evidence from Kenya," American Economic Review, American Economic Association, vol. 101(6), pages 2350-2390, October.
    2. Rasul, Golam & Thapa, Gopal B., 2003. "Sustainability Analysis of Ecological and Conventional Agricultural Systems in Bangladesh," World Development, Elsevier, vol. 31(10), pages 1721-1741, October.
    3. Marenya, Paswel P. & Barrett, Christopher B., 2007. "Household-level determinants of adoption of improved natural resources management practices among smallholder farmers in western Kenya," Food Policy, Elsevier, vol. 32(4), pages 515-536, August.
    4. Damon Jones & David Molitor & Julian Reif, 2019. "What do Workplace Wellness Programs do? Evidence from the Illinois Workplace Wellness Study," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 134(4), pages 1747-1791.
    5. Alejandro Drexler & Greg Fischer & Antoinette Schoar, 2014. "Keeping It Simple: Financial Literacy and Rules of Thumb," American Economic Journal: Applied Economics, American Economic Association, vol. 6(2), pages 1-31, April.
    6. Elaine M. Liu, 2013. "Time to Change What to Sow: Risk Preferences and Technology Adoption Decisions of Cotton Farmers in China," The Review of Economics and Statistics, MIT Press, vol. 95(4), pages 1386-1403, October.
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    Cited by:

    1. Anik, Asif Reza & Eory, Vera & Begho, Toritseju & Rahman, Md. Mizanur, 2023. "Determinants of nitrogen use efficiency and gaseous emissions assessed from farm survey: A case of wheat in Bangladesh," Agricultural Systems, Elsevier, vol. 206(C).
    2. Michelson, Hope & Gourlay, Sydney & Lybbert, Travis & Wollburg, Philip, 2023. "Review: Purchased agricultural input quality and small farms," Food Policy, Elsevier, vol. 116(C).
    3. Michelson,Hope Carolyn & Gourlay,Sydney & Wollburg,Philip Randolph, 2022. "Non-Labor Input Quality and Small Farms in Sub-Saharan Africa : A Review," Policy Research Working Paper Series 10092, The World Bank.

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    More about this item

    JEL classification:

    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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