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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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  • Wiebelt, Manfred

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.

Suggested Citation

  • Wiebelt, Manfred, 2000. "Measuring the benefit-cost ratio of public IPM technology transfer programs: an optimal control framework and an application to Nepalese agriculture," Kiel Working Papers 989, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:989
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    References listed on IDEAS

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    1. Yudelman, Montague & Ratta, Annu & Nygaard, David, 1998. "Pest management and food production: looking to the future," 2020 vision discussion papers 25, International Food Policy Research Institute (IFPRI).
    2. Wiebers, U.C., 1993. "Integrated Pest Management and Pesticide Regulation in Developing Asia," Papers 211, World Bank - Technical Papers.
    3. Fred C. White & Michael E. Wetzstein, 1995. "Market Effects of Cotton Integrated Pest Management," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(3), pages 602-612.
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    More about this item

    Keywords

    cost-benefit analysis; extension; dynamic optimisation; Nepal; integrated pesticide management;
    All these keywords.

    JEL classification:

    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

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