IDEAS home Printed from https://ideas.repec.org/p/ags/aare13/152171.html
   My bibliography  Save this paper

Tradeoff between Non-farm Income and on-farm conservation investments in the Semi-Arid Tropics of India

Author

Listed:
  • Nedumaran, S.

Abstract

This paper assesses the tradeoff between non-farm income and on-farm soil and water conservation investment by smallholder farmers in the semi-arid tropics of India using a dynamic bioeconomic model. This modeling approach allows understanding the complex interaction and feedback between household economic decision making and sustainability of natural resource base. A dynamic crop-livestock integrated bio-economic has been developed and calibrated for a Semi-Arid Tropics (SAT) watershed village in India where integrated watershed development program was implemented. The village level model is used to assess the impact of improved access to off-farm employment created by watershed development program on household welfare, land degradation and Soil and Water Conservation (SWC) labour used on-farm to reduce run-off and soil erosion. The simulation results revealed that improved non-farm employment opportunities in the village increases household welfare but reduces the households’ incentive to use labour for conservation leading to higher levels of soil erosion and rapid land degradation in the watershed. This indicates that returns to labour are higher in non-farm than on-farm employment opportunities in the village. This appears to be no win-win benefits from improving the access to non-farm income in SAT rainfed farming villages. Complementary policies are required to protect the natural resource base.

Suggested Citation

  • Nedumaran, S., 2013. "Tradeoff between Non-farm Income and on-farm conservation investments in the Semi-Arid Tropics of India," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia 152171, Australian Agricultural and Resource Economics Society.
  • Handle: RePEc:ags:aare13:152171
    DOI: 10.22004/ag.econ.152171
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/152171/files/CP%20Nedumaran.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.152171?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. McCarl, Bruce A. & Apland, Jeffrey, 1986. "Validation Of Linear Programming Models," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 18(2), pages 1-10, December.
    2. Janssen, Sander & van Ittersum, Martin K., 2007. "Assessing farm innovations and responses to policies: A review of bio-economic farm models," Agricultural Systems, Elsevier, vol. 94(3), pages 622-636, June.
    3. Shiferaw, B. A., 2003. "Watershed management and farmer conservation investments in the semi-arid tropics of India: analysis of determinants of resource use decisions and land productivity benefits," IWMI Working Papers H038335, International Water Management Institute.
    4. John E. Lee, 1965. "Allocating Farm Resources between Farm and Nonfarm Uses," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 47(1), pages 83-92.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. S. Nedumaran & Beleke Shiferaw & M. Bantilan & K. Palanisami & Suhas Wani, 2014. "Bioeconomic modeling of farm household decisions for ex-ante impact assessment of integrated watershed development programs in semi-arid India," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 16(2), pages 257-286, April.
    2. Pepijn Schreinemachers & Thomas Berger & Aer Sirijinda & Suwanna Praneetvatakul, 2009. "The Diffusion of Greenhouse Agriculture in Northern Thailand: Combining Econometrics and Agent‐Based Modeling," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 57(4), pages 513-536, December.
    3. Schreinemachers, Pepijn & Berger, Thomas & Aune, Jens B., 2007. "Simulating soil fertility and poverty dynamics in Uganda: A bio-economic multi-agent systems approach," Ecological Economics, Elsevier, vol. 64(2), pages 387-401, December.
    4. Bohan, A. & Shalloo, L. & Malcolm, B. & Ho, C.K.M. & Creighton, P. & Boland, T.M. & McHugh, N., 2016. "Description and validation of the Teagasc Lamb Production Model," Agricultural Systems, Elsevier, vol. 148(C), pages 124-134.
    5. Veysset, P. & Lherm, M. & Bébin, D., 2010. "Energy consumption, greenhouse gas emissions and economic performance assessments in French Charolais suckler cattle farms: Model-based analysis and forecasts," Agricultural Systems, Elsevier, vol. 103(1), pages 41-50, January.
    6. Haberli, Caetano, Jr. & Oliveira, Tiago & Yanaze, Mitsuru, 2017. "Understanding the determinants of adoption of enterprise resource planning (ERP) technology within the agri- food context: the case of the Midwest of Brazil," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 20(5).
    7. Stefano Gaudino & Pytrik Reidsma & Argyris Kanellopoulos & Dario Sacco & Martin K. Van Ittersum, 2018. "Integrated Assessment of the EU’s Greening Reform and Feed Self-Sufficiency Scenarios on Dairy Farms in Piemonte, Italy," Agriculture, MDPI, vol. 8(9), pages 1-27, September.
    8. Serrao, Amilcar & Coelho, Luis, 2004. "Cumulative Prospect Theory: A Study Of The Farmers' Decision Behavior In The Alentejo Dryland Region Of Portugal," 2004 Annual meeting, August 1-4, Denver, CO 20245, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Kevin T. McNamara & Lewell F. Gunter, 1989. "Off-Farm Earnings: the Impact of Economic Structure," The Review of Regional Studies, Southern Regional Science Association, vol. 19(3), pages 37-45, Fall.
    10. Chopin, Pierre & Blazy, Jean-Marc & Guindé, Loïc & Wery, Jacques & Doré, Thierry, 2017. "A framework for designing multi-functional agricultural landscapes: Application to Guadeloupe Island," Agricultural Systems, Elsevier, vol. 157(C), pages 316-329.
    11. Wang Cheng, 2022. "The Impact of Enterprise Digital Transformation on Service Innovation Performance -- Taking the construction enterprises in the Yangtze River Delta as the research object," International Journal of Science and Business, IJSAB International, vol. 14(1), pages 155-172.
    12. Maxwell Mkondiwa & Jeffrey Apland, 2022. "Inter-district food flows in Malawi," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 14(6), pages 1553-1568, December.
    13. Hutchings, Timothy R., 2009. "A financial analysis of the effect of the mix of crop and sheep enterprises on the risk profile of dryland farms in south-eastern Australia – Part 1," AFBM Journal, Australasian Farm Business Management Network, vol. 6(01), pages 1-16, October.
    14. Jarisch, Isabelle & Bödeker, Kai & Bingham, Logan Robert & Friedrich, Stefan & Kindu, Mengistie & Knoke, Thomas, 2022. "The influence of discounting ecosystem services in robust multi-objective optimization – An application to a forestry-avocado land-use portfolio," Forest Policy and Economics, Elsevier, vol. 141(C).
    15. Schreefel, L. & de Boer, I.J.M. & Timler, C.J. & Groot, J.C.J. & Zwetsloot, M.J. & Creamer, R.E. & Schrijver, A. Pas & van Zanten, H.H.E. & Schulte, R.P.O., 2022. "How to make regenerative practices work on the farm: A modelling framework," Agricultural Systems, Elsevier, vol. 198(C).
    16. Parisa Aghajanzadeh-Darzi & Pierre-Alain Jayet & Athanasios Petsakos, 2017. "Improvement of a Bio-Economic Mathematical Programming Model in the Case of On-Farm Source Inputs and Outputs," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 15(3), pages 489-508, September.
    17. Jacquet, Florence & Butault, Jean-Pierre & Guichard, Laurence, 2011. "An economic analysis of the possibility of reducing pesticides in French field crops," Ecological Economics, Elsevier, vol. 70(9), pages 1638-1648, July.
    18. Mugurel Ionel JITEA & Diana Elena DUMITRAȘ & Vasile Alexandru SIMU, 2015. "An ex-ante impact assessment of the Common Agricultural Policy reform in the North-Western Romania," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 61(2), pages 88-103.
    19. Robinson, Chris & McMahon, Pat J., 1981. "Off-Farm Investment and Employment in the Australian Grazing Industry: A Preliminary Analysis," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 49(01), pages 1-21, April.
    20. Lee, Heera & Bogner, Christina & Lee, Saem & Koellner, Thomas, 2016. "Crop selection under price and yield fluctuation: Analysis of agro-economic time series from South Korea," Agricultural Systems, Elsevier, vol. 148(C), pages 1-11.

    More about this item

    Keywords

    Environmental Economics and Policy; Farm Management; International Development; International Relations/Trade; Research and Development/Tech Change/Emerging Technologies;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aare13:152171. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaresea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.