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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Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number
989.
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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