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Measuring the Benefit-Cost Ratio of Public IPM Technology Transfer Programs: An Optimal Control Framework and an Application to Nepalese Agriculture

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Author Info
Manfred Wiebelt

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Abstract

Despite favourable ecological and economic results, many developing countries have not yet adopted an integrated pesticide management (IPM). Given rising marginal costs and diminishing marginal benefits from IPM technology transfer, an optimal control framework is used to identify optimal rates of technology transfer. The framework is applied to Nepalese agriculture to illustrate the dynamic adoption process for IPM. The results indicate that public IPM technology transfer programs should be targeted to maintain about 50% of agricultural production in IPM. The benefit-cost ratio is approximately 7.9:1. If the educational program is financed by a tax on chemical inputs the benefit-cost ratio would be 9.1:1.

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File URL: http://www.ifw-members.ifw-kiel.de/publications/measuring-the-benefit-cost-ratio-of-public-ipm-technology-transfer-programs-an-optimal-control-framework-and-an-application-to-nepalese-agriculture/kap989.pdf
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Publisher Info
Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 989.

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Length: 22 pages
Date of creation: Jul 2000
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Handle: RePEc:kie:kieliw:989

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Related research
Keywords: Integrated pesticide management; cost-benefit analysis; extension; dynamic optimisation; Nepal;

Find related papers by JEL classification:
C61 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Optimization Techniques; Programming Models; Dynamic Analysis
D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Agricultural Extension Services
Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

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  1. Feder, Gershon & Just, Richard E & Zilberman, David, 1985. "Adoption of Agricultural Innovations in Developing Countries: A Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 33(2), pages 255-98, January.
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