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Estimating shadow price for symbiotic nitrogen and technical efficiency for legume-based conservation agriculture in Malawi

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  • Khataza, Robertson R. B.
  • Hailu, Atakelty
  • Kragt, Marit E.
  • Doole, Graeme J.

Abstract

Determining the value of legumes as soil fertility amendments can be challenging, yet this information is required to guide public policy and to incentivise prescribed landmanagement practices such as conservation agriculture. We use a directional input distance function (DIDF) to estimate shadow prices for symbiotic nitrogen and the technical efficiency for mixed maize-legume production systems in Malawi. The shadow prices reflect the trade-off between fertiliser nitrogen and symbiotic nitrogen required to achieve a given quantity of output. Our results reveal considerable technical inefficiency in the production system. The estimated shadow prices vary across farms and are, on average, higher than the reference price for commercial nitrogen. The results suggest that it would be beneficial to redesign the current pricesupport programs that subsidise chemical fertilisers and indirectly crowd-out organic soil amendments such as legumes.

Suggested Citation

  • Khataza, Robertson R. B. & Hailu, Atakelty & Kragt, Marit E. & Doole, Graeme J., 2017. "Estimating shadow price for symbiotic nitrogen and technical efficiency for legume-based conservation agriculture in Malawi," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 61(3), July.
    • Handle: RePEc:ags:aareaj:313544
    DOI: 10.22004/ag.econ.313544
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    Cited by:

    1. Zhu, Wei & Qi, Lixia & Wang, Ruime, 2021. "Impact of Market Price Support Measures on Chemical Fertilizer Use in China," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 9(1), January.
    2. Deininger, Klaus & Xia, Fang & Kilic, Talip & Moylan, Heather, 2021. "Investment impacts of gendered land rights in customary tenure systems: Substantive and methodological insights from Malawi," World Development, Elsevier, vol. 147(C).
    3. Asjad Tariq Sheikh & Atakelty Hailu & Amin Mugera & Ram Pandit & Stephen Davies, 2024. "Soil quality evaluation for irrigated agroecological zones of Punjab, Pakistan: The Luenberger indicator approach," Agricultural Economics, International Association of Agricultural Economists, vol. 55(3), pages 531-553, May.
    4. Zhou, Jiajun & Mennig, Philipp & Sauer, Johannes, 2024. "Shadow prices of agrochemicals in the Chinese farming sector," 2024 Annual Meeting, July 28-30, New Orleans, LA 343528, Agricultural and Applied Economics Association.
    5. Artiom Volkov & Mangirdas Morkunas & Tomas Balezentis & Vaida Šapolaitė, 2020. "Economic and Environmental Performance of the Agricultural Sectors of the Selected EU Countries," Sustainability, MDPI, vol. 12(3), pages 1-17, February.
    6. Tang, Kai & He, Chuantian & Ma, Chunbo & Wang, Dong, 2019. "Does carbon farming provide a cost-effective option to mitigate GHG emissions? Evidence from China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 63(3), July.
    7. Khataza, Robertson R.B. & Doole, Graeme J. & Kragt, Marit E. & Hailu, Atakelty, 2018. "Information acquisition, learning and the adoption of conservation agriculture in Malawi: A discrete-time duration analysis," Technological Forecasting and Social Change, Elsevier, vol. 132(C), pages 299-307.
    8. K. Hervé Dakpo & Yann Desjeux & Laure Latruffe, 2023. "Cost of abating excess nitrogen on wheat plots in France: An assessment with multi‐technology modelling," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(3), pages 800-815, September.

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