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Is Environmentally Friendly Agriculture Less Profitable for Farmers? Evidence on Integrated Pest Management in Bangladesh

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  • Susmita Dasgupta
  • Craig Meisner
  • David Wheeler

Abstract

Concerns about the sustainability of conventional agriculture have prompted widespread introduction of integrated pest management (IPM), an ecologically based approach to control harmful insects and weeds. IPM is intended to reduce ecological and health damage from chemical pesticides by using natural parasites and predators to control pest populations. Since chemical pesticides are expensive for poor farmers, IPM offers the prospect of lower production costs and higher profitability. However, adoption of IPM may reduce profitability if it also lowers overall productivity or induces more intensive use of other production factors. On the other hand, IPM may actually promote more productive farming by encouraging more skillful use of available resources. Data scarcity has hindered a full accounting of IPM's impact on profitability, health, and local ecosystems. Using new survey data, this paper attempts such an accounting for rice farmers in Bangladesh. We compare outcomes for farming with IPM and conventional techniques, using input-use accounting and conventional production functions. All of our results suggest that the productivity of IPM rice farming is not significantly different from conventional farming. Since IPM reduces pesticide costs with no countervailing loss in production, it appears to be more profitable than conventional rice farming. Our interview results also suggest substantial health and ecological benefits. However, externality problems make it difficult for farmers to adopt IPM individually. Without collective adoption, neighbors' continued reliance on chemicals to eliminate pests will also kill helpful parasites and predators, as well as expose IPM farmers and local ecosystems to chemical spillovers from adjoining fields. Successful IPM adoption may therefore depend on institutional support for collective action. Copyright 2007, Oxford University Press.

Suggested Citation

  • Susmita Dasgupta & Craig Meisner & David Wheeler, 2007. "Is Environmentally Friendly Agriculture Less Profitable for Farmers? Evidence on Integrated Pest Management in Bangladesh," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(1), pages 103-118.
  • Handle: RePEc:oup:revage:v:29:y:2007:i:1:p:103-118
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    File URL: http://hdl.handle.net/10.1111/j.1467-9353.2006.00332.x
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    References listed on IDEAS

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    1. Rasul, Golam & Thapa, Gopal B., 2003. "Sustainability Analysis of Ecological and Conventional Agricultural Systems in Bangladesh," World Development, Elsevier, vol. 31(10), pages 1721-1741, October.
    2. Rahman, Sanzidur, 2003. "Profit efficiency among Bangladeshi rice farmers," Food Policy, Elsevier, pages 487-503.
    3. Maureen L. Cropper, 1994. "Economic and Health Consequences of Pesticide Use in Developing Country Agriculture: Discussion," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(3), pages 605-607.
    4. Tim Coelli & Sanzidur Rahman & Colin Thirtle, 2002. "Technical, Allocative, Cost and Scale Efficiencies in Bangladesh Rice Cultivation: A Non-parametric Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(3), pages 607-626.
    5. Kodde, David A & Palm, Franz C, 1986. "Wald Criteria for Jointly Testing Equality and Inequality Restriction s," Econometrica, Econometric Society, vol. 54(5), pages 1243-1248, September.
    6. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, pages 325-332.
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    Cited by:

    1. Li, Jie & Gomez, Miguel I. & Rickard, Bradley J. & Skinner, Margaret, 2011. "Factors Influencing Adoption of Integrated Pest Management in Northeast Greenhouse and Nursery Production," Working Papers 126614, Cornell University, Department of Applied Economics and Management.
    2. Hazell, Peter B.R., 2009. "The Asian Green Revolution:," IFPRI discussion papers 911, International Food Policy Research Institute (IFPRI).
    3. Li, Jie & Gómez, Miguel I. & Rickard, Bradley J. & Skinner, Margaret, 2013. "Factors Influencing Adoption of Integrated Pest Management in Northeast Greenhouse and Nursery Production," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 42(2), August.
    4. Gregor Devine & Michael Furlong, 2007. "Insecticide use: Contexts and ecological consequences," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), pages 281-306.

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