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Targeting Technology to Increase Smallholder Profits and Conserve Resources: Experimental Provision of Laser Land-Leveling Services to Indian Farmers

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  • Travis J. Lybbert
  • Nicholas Magnan
  • David J. Spielman
  • Anil K. Bhargava
  • Kajal Gulati

Abstract

With heterogeneous demand and consumption externalities, market segmentation and targeting can improve social welfare. We use a selective trial for laser land leveling (LLL) in India to understand such targeting strategies. We elicit farmer demand for and benefits from LLL services. LLL reduces groundwater extraction by 24%, with comparable fuel savings from reduced pumping. To leverage positive externalities, we combine farmer demand, LLL pumping effects, and service provider costs to evaluate the cost-effectiveness and other impacts of potential targeting strategies. A first-hour LLL discount—a second-degree price discrimination strategy—emerges as the most cost-effective targeting strategy for reducing groundwater extraction.

Suggested Citation

  • Travis J. Lybbert & Nicholas Magnan & David J. Spielman & Anil K. Bhargava & Kajal Gulati, 2018. "Targeting Technology to Increase Smallholder Profits and Conserve Resources: Experimental Provision of Laser Land-Leveling Services to Indian Farmers," Economic Development and Cultural Change, University of Chicago Press, vol. 66(2), pages 265-306.
  • Handle: RePEc:ucp:ecdecc:doi:10.1086/695284
    DOI: 10.1086/695284
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    Citations

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    Cited by:

    1. Gunther Bensch & Jörg Peters, 2020. "One‐Off Subsidies and Long‐Run Adoption—Experimental Evidence on Improved Cooking Stoves in Senegal," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(1), pages 72-90, January.
    2. Shapiro, Jeremy, 2019. "The impact of recipient choice on aid effectiveness," World Development, Elsevier, vol. 116(C), pages 137-149.
    3. Gulati, Kajal & Lybbert, Travis J. & Spielman, David J., 2017. "Diffusing to level fields: Evolution of laser land leveling technology markets in India," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258387, Agricultural and Applied Economics Association.
    4. P. K. Viswanathan & K. Kavya & Chandra Sekhar Bahinipati, 2020. "Global Patterns of Climate-resilient Agriculture: A Review of Studies and Imperatives for Empirical Research in India," Review of Development and Change, , vol. 25(2), pages 169-192, December.
    5. Channa, Hira & Chen, Amy Z. & Pina, Patricia & Ricker-Gilbert, Jacob & Stein, Daniel, 2019. "What drives smallholder farmers’ willingness to pay for a new farm technology? Evidence from an experimental auction in Kenya," Food Policy, Elsevier, vol. 85(C), pages 64-71.
    6. Bahinipati, Chandra Sekhar & Viswanathan, P.K., 2019. "Incentivizing resource efficient technologies in India: Evidence from diffusion of micro-irrigation in the dark zone regions of Gujarat," Land Use Policy, Elsevier, vol. 86(C), pages 253-260.
    7. Jonathan Bauchet & Stacy Prieto & Jacob Ricker‐Gilbert, 2021. "Improved Drying and Storage Practices that Reduce Aflatoxins in Stored Maize: Experimental Evidence from Smallholders in Senegal," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(1), pages 296-316, January.

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