Ecosystem impacts of pesticide reductions through Bt cotton adoption

This article examines the ecosystem impacts of transgenic Bt cotton technology resulting from reduced chemical pesticide use. Employing unique panel data from smallholder farmers in India, negative environmental and health effects of pesticide use are quantified with the environmental impact quotient (EIQ), with and without Bt technology. An environmentally sensitive dynamic production function is estimated, treating the environmental risk of pesticide toxicity as an undesirable output in the production process. Negative externalities are significantly lower in Bt than in conventional cotton. The reduction in EIQ through Bt technology adoption has increased from 39 per cent during 2002–2004 to 68 per cent during 2006–2008. Bt adoption has also contributed to higher environmental efficiency. Environmental efficiency is influenced by the quality of Bt technology: high‐quality Bt seeds are associated with higher environmental efficiency than lower‐quality seeds.     

Complementarity between water pricing, water rights and local water governance: A Bayesian analysis of choice behaviour of farmers in the Krishna river basin, India

To ensure efficient water allocation and use, policy designers have adopted various strategies, including price setting, decentralising irrigation water management or improving water rights. Most of these strategies have been applied individually, without considering the complementary relationships between them. This paper uses a discrete choice model to analyse the scope for combinations of tools for irrigation water demand management and farmers' acceptance of these. In terms of local irrigation water governance, the presence or absence of collective irrigation water management, in the form of a Water Users Association, is considered. Water rights are specified in terms of the duration and quality of the entitlement and its transferability. Finally, four types of water pricing methods (area, crop, block and volumetric pricing) are considered. Using a choice experiment, we elicit the most preferred water pricing method, under different water rights situations, at different price levels and under various contexts for local irrigation water governance. Our results indicated that under conditions of improved water rights, preference for volumetric pricing increases, whilst the presence of a Water Users Association reduces this preference. Furthermore, it was found that using an appropriate combination of water demand management tools considerably increases the willingness to pay for a change in scenario.     

What nutrition label to use in a catering environment? A discrete choice experiment

Worksite and university canteens are increasingly used for daily main meal consumption. Following the use of front-of-pack nutrition labels on pre-packed foods, the provision of easily accessible nutrition information on foods prepared and consumed out of home is a highly topical policy issue with the potential to help consumers making better informed and more healthy food choices when eating out. Information that is presented in a format preferred by the target group is more likely to be used. A sample of 1725 university canteen users participated in a web-based choice experiment designed to identify and understand individual preferences for alternative nutrition labels on canteen meals. Participants valued the presence of nutrition labels on canteen meals and showed a preference for more detailed formats. Ability and motivation to process information as well as socio-demographics explained differences in label preferences. Observed decreasing marginal utility from combinations of two simple label formats as well as from combinations of two detailed formats, signalled information insufficiency versus information overload, respectively. In order to satisfy most canteen users’ information needs, a nutrition label that contains basic Guideline Daily Amount (GDA)-type of numerical information in combination with familiar visual aids like stars and colour codes is proposed to be used in university canteens.     

Application of a bias-corrected meta-frontier approach and an endogenous switching regression to analyze the technical efficiency of conservation tillage for wheat in South Asia

Conservation tillage (CT) options are among the most rapidly spreading land preparation and crop establishment techniques globally. In South Asia, CT has spread dramatically over the last decade, a result of strong policy support and increasing availability of appropriate machinery. Although many studies have analyzed the yield and profitability of CT systems, the technical efficiency impacts accrued by farmers utilizing CT have received considerably less attention. Employing a DEA framework, we isolated bias-corrected meta-frontier technical efficiencies and meta-technology ratios of three CT options adopted by wheat farmers in Bangladesh, including bed planting (BP), power tiller operated seeding (PTOS), and strip tillage (ST), compared to a control group of farmers practicing traditional tillage (TT). Endogenous switching regression was subsequently employed to overcome potential self-selection bias in the choice of CT, in order to robustly estimate efficiency factors. Among the tillage options studied, PTOS was the most technically efficient, with an average meta-technology ratio of 0.90, followed by BP (0.88), ST (0.83), and TT (0.67). The average predicted meta-frontier technical efficiency for the CT non-adopters under a counterfactual scenario (0.80) was significantly greater (P?=?0.00) than current TE scores (0.65), indicating the potential for sizeable profitability increases with CT adoption. Conversely, the counterfactual TE of non-adopters was 23% greater than their DEA efficiency, also indicating efficiency gains from CT adoption. Our results provide backing for agricultural development programs in South Asia that aim to increase smallholder farmers’ income through the application of CT as a pathway towards poverty reduction.