IDEAS home Printed from https://ideas.repec.org/p/ags/aaea14/170689.html
   My bibliography  Save this paper

Do input subsidies crowd in or crowd out other soil fertility management practices? Evidence from Zambia

Author

Listed:
  • Levine, Kendra
  • Mason, Nicole M.

Abstract

It is recognized that inorganic fertilizer, as is commonly distributed in large-­‐scale input subsidy programs, must be used along with soil fertility management (SFM) practices in order to maximize its efficacy. We use nationally representative data with 8,839 household observations to assess the impact of the Zambian input subsidy program on the use of five SFM practices: (i) manure and/or compost application, (ii) soil erosion preventative measures, (iii) minimum tillage, (iv) rotations between cereals and legumes, and (v) leaving land fallow. We estimate at the household level the effect of subsidized fertilizer on probability of adoption of each practice using a maximum likelihood probit model and the effect on number of hectares under each practice with a maximum likelihood Tobit model. The endogeneity of fertilizer distribution is tested and controlled for using the control function approach. We find a small but positive statistically significant crowding in effect of receiving subsidized fertilizer on all SFM practices except for fallow land, where we report a statistically significant crowding out effect of larger magnitude than estimated for the other practices (a decrease in hectares equal to 11.3% of the unconditional mean hectares of fallow land per household).

Suggested Citation

  • Levine, Kendra & Mason, Nicole M., 2014. "Do input subsidies crowd in or crowd out other soil fertility management practices? Evidence from Zambia," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170689, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea14:170689
    DOI: 10.22004/ag.econ.170689
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/170689/files/Levine%20and%20Mason-%20AAEAFinal.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.170689?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Paswel P. Marenya & Christopher B. Barrett, 2009. "State-conditional Fertilizer Yield Response on Western Kenyan Farms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(4), pages 991-1006.
    2. Smale, Melinda & Jayne, T.S., 2003. "Maize in Eastern and Southern Africa: 'seeds' of success in retrospect," EPTD discussion papers 97, International Food Policy Research Institute (IFPRI).
    3. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, September.
    4. Mason, Nicole M. & Ricker-Gilbert, Jacob, 2013. "Disrupting Demand for Commercial Seed: Input Subsidies in Malawi and Zambia," World Development, Elsevier, vol. 45(C), pages 75-91.
    5. Feder, Gershon & Just, Richard E & Zilberman, David, 1985. "Adoption of Agricultural Innovations in Developing Countries: A Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 33(2), pages 255-298, January.
    6. Stein Holden & Rodney Lunduka, 2012. "Do fertilizer subsidies crowd out organic manures? The case of Malawi," Agricultural Economics, International Association of Agricultural Economists, vol. 43(3), pages 303-314, May.
    7. T.S. Jayne & David Mather & Nicole Mason & Jacob Ricker-Gilbert, 2013. "How do fertilizer subsidy programs affect total fertilizer use in sub-Saharan Africa? Crowding out, diversion, and benefit/cost assessments," Agricultural Economics, International Association of Agricultural Economists, vol. 44(6), pages 687-703, November.
    8. Place, Frank & Barrett, Christopher B. & Freeman, H. Ade & Ramisch, Joshua J. & Vanlauwe, Bernard, 2003. "Prospects for integrated soil fertility management using organic and inorganic inputs: evidence from smallholder African agricultural systems," Food Policy, Elsevier, vol. 28(4), pages 365-378, August.
    9. Bationo, Andre & Kihara, Job & Vanlauwe, Bernard & Waswa, Boaz & Kimetu, Joseph, 2007. "Soil organic carbon dynamics, functions and management in West African agro-ecosystems," Agricultural Systems, Elsevier, vol. 94(1), pages 13-25, April.
    10. Lenis Saweda O. Liverpool-Tasie, 2014. "Fertilizer subsidies and private market participation: the case of Kano State, Nigeria," Agricultural Economics, International Association of Agricultural Economists, vol. 45(6), pages 663-678, November.
    11. Nicole M. Mason & T.S. Jayne & Rhoda Mofya-Mukuka, 2013. "Zambia's input subsidy programs," Agricultural Economics, International Association of Agricultural Economists, vol. 44(6), pages 613-628, November.
    12. T.S. Jayne & Shahidur Rashid, 2013. "Input subsidy programs in sub-Saharan Africa: a synthesis of recent evidence," Agricultural Economics, International Association of Agricultural Economists, vol. 44(6), pages 547-562, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Julius Manda & Arega D. Alene & Cornelis Gardebroek & Menale Kassie & Gelson Tembo, 2016. "Adoption and Impacts of Sustainable Agricultural Practices on Maize Yields and Incomes: Evidence from Rural Zambia," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(1), pages 130-153, February.
    2. Zinnbauer, Maximilian & Mockshell, Jonathan & Zeller, Manfred, 2018. "Effects if Fertilizer Subsidies in Zambia: A Literature Review," MPRA Paper 84125, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Morgan, Stephen N. & Mason, Nicole M. & Levine, N. Kendra & Zulu-Mbata, Olipa, 2019. "Dis-incentivizing sustainable intensification? The case of Zambia’s maize-fertilizer subsidy program," World Development, Elsevier, vol. 122(C), pages 54-69.
    2. Jayne, Thomas S. & Mason, Nicole M. & Burke, William J. & Ariga, Joshua, 2018. "Review: Taking stock of Africa’s second-generation agricultural input subsidy programs," Food Policy, Elsevier, vol. 75(C), pages 1-14.
    3. Levine, N. Kendra & Mason, Nicole M. & Morgan, Stephen N., 2016. "Do input subsidies crowd in or crowd out other soil fertility management practices? Panel survey evidence from Zambia," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246393, African Association of Agricultural Economists (AAAE).
    4. Nicole M. Mason & Thomas S. Jayne & Nicolas van de Walle, 2017. "The Political Economy of Fertilizer Subsidy Programs in Africa: Evidence from Zambia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 99(3), pages 705-731.
    5. Fujimoto, Takefumi & Suzuki, Aya, 2021. "Do Fertilizer and Seed Subsidies Strengthen Farmers' Market Participation? the Impact of Tanzania NAIVS on Farmers' Purchase of Agricultural Inputs and Their Maize-Selling Activities," 2021 Conference, August 17-31, 2021, Virtual 315044, International Association of Agricultural Economists.
    6. Jayne, T.S. & Mason, Nicole M. & Burke, William J. & Ariga, Joshua, 2016. "Agricultural Input Subsidy Programs in Africa: An Assessment of Recent Evidence," Food Security International Development Working Papers 245892, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    7. Jongwoo Kim & Nicole M. Mason & David Mather & Felicia Wu, 2021. "The effects of the national agricultural input voucher scheme (NAIVS) on sustainable intensification of maize production in Tanzania," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(3), pages 857-877, September.
    8. Mason, N. & Morgan, S. & Levine, N.K. & Zulu-Mbata, O., 2018. "Dis-incentivizing sustainable intensification? The case of Zambia s fertilizer subsidy program," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277491, International Association of Agricultural Economists.
    9. Barrett,Christopher B. & Sheahan,Megan Britney & Barrett,Christopher B. & Sheahan,Megan Britney, 2014. "Understanding the agricultural input landscape in Sub-Saharan Africa : recent plot, household, and community-level evidence," Policy Research Working Paper Series 7014, The World Bank.
    10. Mason, Nicole & Tembo, Solomon, 2015. "Do input Subsidies Reduce Poverty among Smallholder Farm Households? Panel Survey Evidence from Zambia," 2015 Conference, August 9-14, 2015, Milan, Italy 212233, International Association of Agricultural Economists.
    11. Mason, Nicole M. & Wineman, Ayala & Kirimi, Lilian & Mather, David, 2016. "The Effects of Kenya’s ‘Smarter’ Input Subsidy Program on Smallholder Behavior and Incomes: Do Different Quasi-Experimental Approaches Lead to the Same Conclusions?," Food Security Collaborative Working Papers 232090, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    12. Mason, Nicole M. & Tembo, Solomon T., 2014. "Do input subsidies reduce poverty among smallholder farm households? Evidence from Zambia," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170617, Agricultural and Applied Economics Association.
    13. Mason, Nicole M. & Tembo, Solomon T., 2015. "Do Input Subsidy Programs Raise Incomes and Reduce Poverty among Smallholder Farm Households? Evidence from Zambia," Food Security Collaborative Working Papers 198702, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    14. Jayne, T.S. & Sitko, Nicholas J. & Mason, Nicole M., 2017. "Can Input Subsidy Programs Contribute To Climate Smart Agriculture?," Feed the Future Innovation Lab for Food Security Policy Research Papers 270626, Michigan State University, Department of Agricultural, Food, and Resource Economics, Feed the Future Innovation Lab for Food Security (FSP).
    15. Nicole M. Mason & Ayala Wineman & Lilian Kirimi & David Mather, 2017. "The Effects of Kenya's ‘Smarter’ Input Subsidy Programme on Smallholder Behaviour and Incomes: Do Different Quasi-experimental Approaches Lead to the Same Conclusions?," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(1), pages 45-69, February.
    16. Kaiyatsa, Stevier & Jumbe, Charles & Ricker-Gilbert, Jacob, 2017. "Supply-side Crowding-out and Crowding-in Effects of Malawi’s Farm Input Subsidy Program on Private-sector Input Marketing: A Quasi-experimental Field Study," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258135, Agricultural and Applied Economics Association.
    17. Lenis Saweda O. Liverpool-Tasie, 2017. "Is fertiliser use inconsistent with expected profit maximization in sub-Saharan Africa? “Evidence from Nigeria”," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(1), pages 22-44, February.
    18. Sinafikeh Asrat Gemessa, 2022. "An alternative approach to measuring the welfare implications of input subsidies: Evidence from Malawi," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(1), pages 112-138, February.
    19. Saenz, Mariana & Thompson, Eric, 2017. "Gender and Policy Roles in Farm Household Diversification in Zambia," World Development, Elsevier, vol. 89(C), pages 152-169.
    20. Nicole M. Mason & Ayala Wineman & Solomon T. Tembo, 2020. "Reducing poverty by ‘ignoring the experts’? Evidence on input subsidies in Zambia," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 12(5), pages 1157-1172, October.

    More about this item

    Keywords

    Agricultural and Food Policy; Community/Rural/Urban Development; International Development;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea14:170689. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.