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Urea Subsidies and the Decision to Allocate Land to a New Fertilizing Technology: Ex-ante Analysis in Ecuador

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  • Avila-Santamaria, Jorge J.
  • Useche, Maria P.

Abstract

This ex-ante study examines how urea subsidies affect the adoption of a more efficient but labor-intensive existing alternative, Urea Deep Placement (UDP), in some of the major growing regions of Ecuador (Daule and Santa Lucia cantons, Guayas province). A government subsidy covers around 30% of urea fertilizer cost since 2007. Such a public intervention may be favoring to the traditional broadcasting fertilization method, which demands urea more intensively, crowding out improved innovations (i.e. UDP) and becoming an adverse selection mechanism.

Suggested Citation

  • Avila-Santamaria, Jorge J. & Useche, Maria P., 2016. "Urea Subsidies and the Decision to Allocate Land to a New Fertilizing Technology: Ex-ante Analysis in Ecuador," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 229851, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea16:229851
    DOI: 10.22004/ag.econ.229851
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