Nudging Boserup? The Impact of Fertilizer Subsidies on Investment in Soil and Water Conservation
AbstractThe new fertilizer subsidies in sub-Saharan Africa are intended to increase agricultural production and ensure development of a fertilizer market. Fertilizer adoption requires complementary inputs, such as investment in soil and water conservation (SWC), for efficient and optimal nutrient uptake, and many fertilizer subsidy programs implicitly assume that fertilizer subsidies crowd in such investments. The results of our study of the impact of fertilizer subsidies on SWC efforts in Ghana indicate that beneficiaries of the program do not invest significantly more in SWC. This suggests that policies should not expect farmers to respond to fertilizer subsidies with substantial investment in SWC. Thus, in order to achieve increased investment in SWC for sustainable agricultural development, more comprehensive measures that include fertilizer investments explicitly (such as integrated soil fertility management programs) may be needed.
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Bibliographic InfoPaper provided by Resources For the Future in its series Discussion Papers with number dp-12-08-efd.
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soil and water conservation; soil fertility; fertilizer subsidy; endogenous switching;
Other versions of this item:
- Vondolia, Godwin K., 2011. "Nudging Boserup? The impact of fertilizer subsidies on investment in soil and water conservation," Working Papers in Economics 509, University of Gothenburg, Department of Economics.
- N57 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Africa; Oceania
- Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
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