What is the intrinsic value of fertilizer? Experimental value elicitation and decomposition in the hill and terai regions of Nepal
The government in Nepal faces double burden of enhancing fertilizer application rates in the country by investing in efforts to boost demand and at the same time, managing its dependence on global markets to fulfill the supply of important nutrients such as Urea and DAP. Without an understanding of...
| Autores principales: | , , , , , , |
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| Formato: | Artículo preliminar |
| Lenguaje: | Inglés |
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International Food Policy Research Institute
2019
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/146091 |
| _version_ | 1855516060145418240 |
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| author | Ward, Patrick S. Gupta, Shweta Singh, Vartika Ortega, David L. Gautam, Shriniwas Guerena, David Shrestha, Rudra Bahadur |
| author_browse | Gautam, Shriniwas Guerena, David Gupta, Shweta Ortega, David L. Shrestha, Rudra Bahadur Singh, Vartika Ward, Patrick S. |
| author_facet | Ward, Patrick S. Gupta, Shweta Singh, Vartika Ortega, David L. Gautam, Shriniwas Guerena, David Shrestha, Rudra Bahadur |
| author_sort | Ward, Patrick S. |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | The government in Nepal faces double burden of enhancing fertilizer application rates in the country by investing in efforts to boost demand and at the same time, managing its dependence on global markets to fulfill the supply of important nutrients such as Urea and DAP. Without an understanding of the true valuation of fertilizers for farmers, achieving this balance would be difficult. We use Becker-DeGroot-Marshak value elicitation methods to derive the intrinsic value that farmers in Nepal place on fertilizers. Eliciting values under three distinct procurement scenarios, we are able to decompose the total intrinsic value of fertilizer into a willingness-to-pay (WTP) to travel to procure fertilizer, a WTP for assured fertilizer supplies, and a WTP for the productivity benefits of fertilizer. Disaggregating our sample according to location (hills versus terai), we are able to estimate differences in total intrinsic value as well as value components along these geographical dimensions. While farmers in the hills are generally willing to pay more for urea than their counterparts in the terai, the total amount they are willing to pay is, on average, less than the market price for urea. We explore heterogeneity in valuations and discuss the implications of our findings on fertilizer procurement and distribution policies, as well as direct support policies that the Nepal government may consider. While support policiessuch as subsidies may encourage increased utilization of fertilizers, policies that lower barriers to private sector entry and increase the density of fertilizer retailers could also increase fertilizer utilization. |
| format | Artículo preliminar |
| id | CGSpace146091 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2019 |
| publishDateRange | 2019 |
| publishDateSort | 2019 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1460912025-11-06T05:18:53Z What is the intrinsic value of fertilizer? Experimental value elicitation and decomposition in the hill and terai regions of Nepal Ward, Patrick S. Gupta, Shweta Singh, Vartika Ortega, David L. Gautam, Shriniwas Guerena, David Shrestha, Rudra Bahadur willingness to pay fertilizers agricultural policies application rates fertilizer application experimentation agricultural development subsidies experimental design The government in Nepal faces double burden of enhancing fertilizer application rates in the country by investing in efforts to boost demand and at the same time, managing its dependence on global markets to fulfill the supply of important nutrients such as Urea and DAP. Without an understanding of the true valuation of fertilizers for farmers, achieving this balance would be difficult. We use Becker-DeGroot-Marshak value elicitation methods to derive the intrinsic value that farmers in Nepal place on fertilizers. Eliciting values under three distinct procurement scenarios, we are able to decompose the total intrinsic value of fertilizer into a willingness-to-pay (WTP) to travel to procure fertilizer, a WTP for assured fertilizer supplies, and a WTP for the productivity benefits of fertilizer. Disaggregating our sample according to location (hills versus terai), we are able to estimate differences in total intrinsic value as well as value components along these geographical dimensions. While farmers in the hills are generally willing to pay more for urea than their counterparts in the terai, the total amount they are willing to pay is, on average, less than the market price for urea. We explore heterogeneity in valuations and discuss the implications of our findings on fertilizer procurement and distribution policies, as well as direct support policies that the Nepal government may consider. While support policiessuch as subsidies may encourage increased utilization of fertilizers, policies that lower barriers to private sector entry and increase the density of fertilizer retailers could also increase fertilizer utilization. 2019-03-07 2024-06-21T09:05:48Z 2024-06-21T09:05:48Z Working Paper https://hdl.handle.net/10568/146091 en https://hdl.handle.net/10568/147009 https://doi.org/10.2499/p15738coll2.133054 Open Access application/pdf International Food Policy Research Institute Ward, Patrick S.; Gupta, Shweta; Singh, Vartika; Ortega, David L.; Gautam, Shriniwas; Guerena, David; and Shrestha, Rudra Bahadur. 2019. What is the intrinsic value of fertilizer? Experimental value elicitation and decomposition in the hill and terai regions of Nepal. IFPRI Discussion Paper 1812. Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/146091 |
| spellingShingle | willingness to pay fertilizers agricultural policies application rates fertilizer application experimentation agricultural development subsidies experimental design Ward, Patrick S. Gupta, Shweta Singh, Vartika Ortega, David L. Gautam, Shriniwas Guerena, David Shrestha, Rudra Bahadur What is the intrinsic value of fertilizer? Experimental value elicitation and decomposition in the hill and terai regions of Nepal |
| title | What is the intrinsic value of fertilizer? Experimental value elicitation and decomposition in the hill and terai regions of Nepal |
| title_full | What is the intrinsic value of fertilizer? Experimental value elicitation and decomposition in the hill and terai regions of Nepal |
| title_fullStr | What is the intrinsic value of fertilizer? Experimental value elicitation and decomposition in the hill and terai regions of Nepal |
| title_full_unstemmed | What is the intrinsic value of fertilizer? Experimental value elicitation and decomposition in the hill and terai regions of Nepal |
| title_short | What is the intrinsic value of fertilizer? Experimental value elicitation and decomposition in the hill and terai regions of Nepal |
| title_sort | what is the intrinsic value of fertilizer experimental value elicitation and decomposition in the hill and terai regions of nepal |
| topic | willingness to pay fertilizers agricultural policies application rates fertilizer application experimentation agricultural development subsidies experimental design |
| url | https://hdl.handle.net/10568/146091 |
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