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Rule-of-Thumb Instructions to Improve Fertilizer Management: Experimental Evidence from Bangladesh

Author

Listed:
  • Mahnaz Islam
  • Sabrin Beg

Abstract

Heavy government subsidies have led to inefficient application and overuse of fertilizer in Bangladesh. This results in above-optimal costs to farmers as well as to the environment and the public. In a randomized controlled trial, we provide farmers with a simple tool (a leaf color chart) and basic, rule-of-thumb instructions to guide the timing and quantity of urea (nitrogen) application. Treatment farmers reduce urea use by 8% without compromising yield, suggesting significant scope for improving urea management. The results are mainly driven by farmers delaying urea application as returns to urea are low early on in the season and urea applied is likely to be wasted. Cost-effectiveness estimates suggest that each dollar spent on this intervention produces a return of US$2.8 due to reduction of urea use over three seasons, as well as significant environmental benefits. We also find suggestive evidence that optimizing the timing of urea application affects farmers’ yields, plausibly as the intervention allows farmers to reallocate urea application to times when returns to urea are highest.

Suggested Citation

  • Mahnaz Islam & Sabrin Beg, 2021. "Rule-of-Thumb Instructions to Improve Fertilizer Management: Experimental Evidence from Bangladesh," Economic Development and Cultural Change, University of Chicago Press, vol. 70(1), pages 237-281.
    • Handle: RePEc:ucp:ecdecc:doi:10.1086/711174
    DOI: 10.1086/711174
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    Cited by:

    1. Fred Mawunyo Dzanku & Robert Darko Osei, 2023. "Does combining traditional and information and communications technology–based extension methods improve agricultural outcomes? Evidence from field experiments in Mali," Review of Development Economics, Wiley Blackwell, vol. 27(1), pages 450-475, February.
    2. Michelson, Hope & Gourlay, Sydney & Lybbert, Travis & Wollburg, Philip, 2023. "Review: Purchased agricultural input quality and small farms," Food Policy, Elsevier, vol. 116(C).
    3. Anik, Asif Reza & Eory, Vera & Begho, Toritseju & Rahman, Md. Mizanur, 2023. "Determinants of nitrogen use efficiency and gaseous emissions assessed from farm survey: A case of wheat in Bangladesh," Agricultural Systems, Elsevier, vol. 206(C).
    4. Grimm, Michael & Luck, Nathalie, 2023. "Experimenting with a green ‘Green Revolution’. Evidence from a randomised controlled trial in Indonesia," Ecological Economics, Elsevier, vol. 205(C).
    5. Michelson,Hope Carolyn & Gourlay,Sydney & Wollburg,Philip Randolph, 2022. "Non-Labor Input Quality and Small Farms in Sub-Saharan Africa : A Review," Policy Research Working Paper Series 10092, The World Bank.
    6. Zimei Liu & Ke Chen & Yezhi Ren, 2024. "Heterogeneous Impacts of Traditional and Modern Information Channels on Farmers’ Green Production: Evidence from China," Sustainability, MDPI, vol. 16(22), pages 1-14, November.
    7. Grimm, Michael & Luck, Nathalie & Raya, Alia Bihrajihant & Sawhney, Udit, 2024. "Small-Scale Farmers' Willingness to Pay for Information: A Comparison of Individual Purchase Decisions with Contributions to a Club Good," IZA Discussion Papers 17472, Institute of Labor Economics (IZA).
    8. Oyakhilomen Oyinbo & Jordan Chamberlin & Tahirou Abdoulaye & Miet Maertens, 2022. "Digital extension, price risk, and farm performance: experimental evidence from Nigeria," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(2), pages 831-852, March.
    9. Beg, Sabrin & Islam, Mahnaz & Rahman, Khandker Wahedur, 2024. "Information and behavior: Evidence from fertilizer quantity recommendations in Bangladesh," Journal of Development Economics, Elsevier, vol. 166(C).

    More about this item

    JEL classification:

    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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