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Agricultural Liming in Zambia: Potential Effects on Welfare

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  • Hinkel, Niklas

    (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI))

Abstract

Soil acidity is crucial for crop yields. Acidic soils decrease the availability of important nutrients to plants, causing lower yields. This applies to both naturally occurring nutrients and fertilizer. A well-known remedy is to provide soils with alkaline materials, like ground limestone. This raises their pH levels, increasing the availability of nutrients to the plant and eventually crop yields. So far, this practice is not widespread in Zambia, a country with largely acidic soils in agricultural areas. The agriculture of Zambia is dominated by smallholder farmers, growing predominantly maize. This paper seeks to quantify the effects on welfare that the introduction of liming would have in the Zambian smallholder maize market. For this purpose, I develop a dynamic, deterministic, open market, spatial partial equilibrium model. Solving the model requires bounded, monotonic, non-convex mixed-integer optimizations with equilibrium constraints. Model results indicate that liming in this market would reduce prices by 22.8% and increase welfare by 3.4% without international trade. With exports at 350 USD/t, the local price would drop by 16.1% and welfare would increase by 5.6% due to liming.

Suggested Citation

  • Hinkel, Niklas, 2019. "Agricultural Liming in Zambia: Potential Effects on Welfare," EWI Working Papers 2019-6, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
    • Handle: RePEc:ris:ewikln:2019_006
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    References listed on IDEAS

    as
    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.
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    8. Teddie Nakhumwa & Rashid Hassan, 2012. "Optimal Management of Soil Quality Stocks and Long-Term Consequences of Land Degradation for Smallholder Farmers in Malawi," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 52(3), pages 415-433, July.
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    More about this item

    Keywords

    Agricultural Economics; Liming; Partial Equilibrium Model; Zambia;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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