Record Details

Assessing economic and environmental impacts of NRM technologies: an empirical application using the economic surplus approach

OAR@ICRISAT

View Archive Info
 
 
Field Value
 
Relation http://oar.icrisat.org/3802/
 
Title Assessing economic and environmental impacts of NRM technologies: an empirical application using the economic surplus approach
 
Creator Bantilan, M C S
Anupama, K V
Joshi, P K
 
Subject Agriculture-Farming, Production, Technology, Economics
 
Description This chapter addresses methodological and empirical complexities in assessing the economic and environmental impacts of crop and resource management research through a case study of groundnut production technology (GNPT) in central India. The GNPT package is described. Data was collected from 355 farm households in Maharashtra for the 1994/95 crop season. To quantify the returns to investment on research and technology exchange, three aspects were examined: (1) benefits (both economic and environmental) accruing from the research and technology exchange programme; (2) adoption rates and the spread of different components of GNPT; and (3) research and technology exchange cost involving research partnerships among international and national research programmes as the extension sector. Economic surplus and distribution welfare gains were estimated by assuming a parallel shift in the supply function due to investment in the research and technology development. Internal rates of return, net present values and benefit-cost ratios were computed under three options: (1) full adoption of the GNPT package; (2) adoption of only management practices; (3) and adoption of only land management with other practices remaining the same. Because environmental effects were not measured in monetary terms, two sensitivity analyses were carried out under scenarios related to net positive and negative environmental effects. The case study illustrates the critical importance and use of qualitative information in understanding additional environmental and long-term effects due to adoption of natural resource management technologies. The results show that if environmental effects reduced fully-accounted unit costs by just 10% more than market effects, the net present value of the GNPT would increase by US$0.4 million and the internal rate of return would increase by 1%
 
Publisher CAB International
 
Contributor Shiferaw, B
Freeman, H A
Swinton, S M
 
Date 2005
 
Type Book Section
PeerReviewed
 
Format application/pdf
 
Language en
 
Rights —
 
Identifier http://oar.icrisat.org/3802/1/NRMA_245-268.pdf
Bantilan, M C S and Anupama, K V and Joshi, P K (2005) Assessing economic and environmental impacts of NRM technologies: an empirical application using the economic surplus approach. In: Natural resource management in agriculture: methods for assessing economic and environmental impacts. CAB International, Wallingford, Oxon, UK, pp. 245-268. ISBN 0-85199-828-3