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Organic Certification, Agro-Ecological Practices and Return on Investment: Farm Level Evidence from Ghana

  • Linda Kleemann
  • Awudu Abdulai

The recent empirical literature on economic sustainability of certified export crops shows that certification standards that enhance yields are important for improving farm revenues and farmer welfare. However, limited evidence exists on the impact of organic certification on the adoption of agro-ecological practices. In this study, we use unique farm-level data from Ghana to examine the impact of organic certification on the use of agro-ecological practices to improve environmental conditions, as well as how using these measures affect farm outcomes such as return on investment. In the former, we utilize an endogenous switching regression approach to account for selection bias due to unobservable factors. Our empirical results reveal that organic certification increases agro-ecological practice use, although from a very low starting point. Using a generalized propensity score approach, we show that there is a nonlinear relationship between the intensity of agro-ecological practice use and return on investment

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File URL: https://www.ifw-members.ifw-kiel.de/publications/organic-certification-agro-ecological-practices-and-return-on-investment-farm-level-evidence-from-ghana/KWP-1816.pdf
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Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1816.

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Length: 36 pages
Date of creation: Dec 2012
Date of revision:
Handle: RePEc:kie:kieliw:1816
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  1. Suzuki, Aya & Jarvis, Lovell S. & Sexton, Richard J., 2011. "Partial Vertical Integration, Risk Shifting, and Product Rejection in the High-Value Export Supply Chain: The Ghana Pineapple Sector," World Development, Elsevier, vol. 39(9), pages 1611-1623, September.
  2. Beuchelt, Tina D. & Zeller, Manfred, 2011. "Profits and poverty: Certification's troubled link for Nicaragua's organic and fairtrade coffee producers," Ecological Economics, Elsevier, vol. 70(7), pages 1316-1324, May.
  3. Marco Caliendo & Sabine Kopeinig, 2005. "Some Practical Guidance for the Implementation of Propensity Score Matching," Discussion Papers of DIW Berlin 485, DIW Berlin, German Institute for Economic Research.
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  6. Valkila, Joni, 2009. "Fair Trade organic coffee production in Nicaragua -- Sustainable development or a poverty trap?," Ecological Economics, Elsevier, vol. 68(12), pages 3018-3025, October.
  7. Kersting, Sarah & Wollni, Meike, 2012. "New institutional arrangements and standard adoption: Evidence from small-scale fruit and vegetable farmers in Thailand," Food Policy, Elsevier, vol. 37(4), pages 452-462.
  8. Knowler, Duncan & Bradshaw, Ben, 2007. "Farmers' adoption of conservation agriculture: A review and synthesis of recent research," Food Policy, Elsevier, vol. 32(1), pages 25-48, February.
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  12. Blackman, Allen & Naranjo, Maria A., 2010. "Does Eco-Certification Have Environmental Benefits? Organic Coffee in Costa Rica," Discussion Papers dp-10-25-efd, Resources For the Future.
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  14. Carlos A. Flores & Alfonso Flores-Lagunes & Arturo Gonzalez & Todd C. Neumann, 2009. "Estimating the Effects of Lenght of Exposure to Traning Program: The Case of Job Corps," Working Papers 2010-3, University of Miami, Department of Economics.
  15. Sarah, Kersting & Meike, Wollni, 2012. "New institutional arrangements and standard adoption: Evidence from small-scale fruit and vegetable farmers in Thailand," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 123537, International Association of Agricultural Economists.
  16. Bolwig, Simon & Gibbon, Peter & Jones, Sam, 2009. "The Economics of Smallholder Organic Contract Farming in Tropical Africa," World Development, Elsevier, vol. 37(6), pages 1094-1104, June.
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  18. Barham, Bradford L. & Weber, Jeremy G., 2012. "The Economic Sustainability of Certified Coffee: Recent Evidence from Mexico and Peru," World Development, Elsevier, vol. 40(6), pages 1269-1279.
  19. Linda Kleemann, 2011. "Organic Pineapple Farming in Ghana - A Good Choice for Smallholders?," Kiel Working Papers 1671, Kiel Institute for the World Economy.
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