Determinants of chemical fertilizer use in Nepal: Insights based on price responsiveness and income effects
Although overall chemical fertilizer use has grown steadily in Nepal in the past two decades, much of that growth has occurred in the Terai agroecological belt while use has stagnated in the Hills and the Mountains regions. Differences in chemical fertilizer use intensity between the Terai and the l...
| Main Authors: | , , , , |
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| Format: | Artículo preliminar |
| Language: | Inglés |
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International Food Policy Research Institute
2016
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/147444 |
| _version_ | 1855522633311846400 |
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| author | Takeshima, Hiroyuki Adhikari, Rajendra Prasad Kaphle, Basu Dev Shivakoti, Sabnam Kumar, Anjani |
| author_browse | Adhikari, Rajendra Prasad Kaphle, Basu Dev Kumar, Anjani Shivakoti, Sabnam Takeshima, Hiroyuki |
| author_facet | Takeshima, Hiroyuki Adhikari, Rajendra Prasad Kaphle, Basu Dev Shivakoti, Sabnam Kumar, Anjani |
| author_sort | Takeshima, Hiroyuki |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Although overall chemical fertilizer use has grown steadily in Nepal in the past two decades, much of that growth has occurred in the Terai agroecological belt while use has stagnated in the Hills and the Mountains regions. Differences in chemical fertilizer use intensity between the Terai and the latter regions are typically pronounced among medium-to-large-size farmers. Using three rounds of the Nepal Living Standards Survey as well as secondary data, we examine the determinants of inorganic fertilizer (urea and DAP) use, as well as the marginal income returns from fertilizer use at the farm-household level. Similarities in soil and climate between farm locale and Agriculture Research Station locale seem to increase demand for fertilizer—even after controlling for distance to those stations. Most important, demand for chemical fertilizer is affected by the real fertilizer price (particularly since the 2003 NLSS survey), but the price response is relatively weaker in the Hills and Mountains, suggesting that returns to fertilizer may be generally low in those regions, and that reducing fertilizer price through subsidies on fertilizer or transportation may not substantially increase fertilizer use. This is confirmed by assessment of the returns to chemical fertilizer use estimated through generalized propensity score matching and ordinary propensity score matching. The findings cast doubt on the effectiveness of fertilizer subsidies as an instrument for stimulating chemical fertilizer use in Nepal, particularly among medium-to-large-scale farmers in the Hills, and point toward alternative measures like increased research and development into technologies that raise overall returns to chemical fertilizer. |
| format | Artículo preliminar |
| id | CGSpace147444 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2016 |
| publishDateRange | 2016 |
| publishDateSort | 2016 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1474442025-11-06T05:57:29Z Determinants of chemical fertilizer use in Nepal: Insights based on price responsiveness and income effects Takeshima, Hiroyuki Adhikari, Rajendra Prasad Kaphle, Basu Dev Shivakoti, Sabnam Kumar, Anjani fertilizers surveys medium size farms households farm inputs living standards propensity score matching tobit model large-scale farming Although overall chemical fertilizer use has grown steadily in Nepal in the past two decades, much of that growth has occurred in the Terai agroecological belt while use has stagnated in the Hills and the Mountains regions. Differences in chemical fertilizer use intensity between the Terai and the latter regions are typically pronounced among medium-to-large-size farmers. Using three rounds of the Nepal Living Standards Survey as well as secondary data, we examine the determinants of inorganic fertilizer (urea and DAP) use, as well as the marginal income returns from fertilizer use at the farm-household level. Similarities in soil and climate between farm locale and Agriculture Research Station locale seem to increase demand for fertilizer—even after controlling for distance to those stations. Most important, demand for chemical fertilizer is affected by the real fertilizer price (particularly since the 2003 NLSS survey), but the price response is relatively weaker in the Hills and Mountains, suggesting that returns to fertilizer may be generally low in those regions, and that reducing fertilizer price through subsidies on fertilizer or transportation may not substantially increase fertilizer use. This is confirmed by assessment of the returns to chemical fertilizer use estimated through generalized propensity score matching and ordinary propensity score matching. The findings cast doubt on the effectiveness of fertilizer subsidies as an instrument for stimulating chemical fertilizer use in Nepal, particularly among medium-to-large-scale farmers in the Hills, and point toward alternative measures like increased research and development into technologies that raise overall returns to chemical fertilizer. 2016-02-12 2024-06-21T09:22:53Z 2024-06-21T09:22:53Z Working Paper https://hdl.handle.net/10568/147444 en https://hdl.handle.net/10568/151363 https://hdl.handle.net/10568/149363 https://hdl.handle.net/10568/154118 Open Access application/pdf International Food Policy Research Institute Takeshima, Hiroyuki; Adhikari, Rajendra Prasad; Kaphle, Basu Dev; Shivakoti, Sabnam; and Kumar, Anjani. 2016. IFPRI Discussion Paper 1507. Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/147444 |
| spellingShingle | fertilizers surveys medium size farms households farm inputs living standards propensity score matching tobit model large-scale farming Takeshima, Hiroyuki Adhikari, Rajendra Prasad Kaphle, Basu Dev Shivakoti, Sabnam Kumar, Anjani Determinants of chemical fertilizer use in Nepal: Insights based on price responsiveness and income effects |
| title | Determinants of chemical fertilizer use in Nepal: Insights based on price responsiveness and income effects |
| title_full | Determinants of chemical fertilizer use in Nepal: Insights based on price responsiveness and income effects |
| title_fullStr | Determinants of chemical fertilizer use in Nepal: Insights based on price responsiveness and income effects |
| title_full_unstemmed | Determinants of chemical fertilizer use in Nepal: Insights based on price responsiveness and income effects |
| title_short | Determinants of chemical fertilizer use in Nepal: Insights based on price responsiveness and income effects |
| title_sort | determinants of chemical fertilizer use in nepal insights based on price responsiveness and income effects |
| topic | fertilizers surveys medium size farms households farm inputs living standards propensity score matching tobit model large-scale farming |
| url | https://hdl.handle.net/10568/147444 |
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