2018
DOI: 10.1002/fes3.156
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Estimating returns to fertilizer adoption with unobserved heterogeneity: Evidence from Ethiopia

Abstract: This paper examines the relationship between chemical fertilizer adoption and agricultural productivity in Ethiopia. Our results suggest that average returns to fertilizer adoption are high. Further, we find substantial heterogeneity across farm households in returns to fertilizer adoption, with comparative advantage playing a significant role in the adoption decision of farmers. While the adoption decision of farmers was largely rational, fertilizer use across plots was sub‐optimal. The results of this paper … Show more

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Cited by 11 publications
(16 citation statements)
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“…An improvement in rice productivity and production through producing and developing improved rice varieties is a vital strategy in addressing this shortfall. This is important in achieving a more comprehensive economic development, food security and poverty reduction in the country (Sheahan & Barrett, 2017; Shiferaw, Kassie, Jaleta, & Yirga, 2014; Wossen, Gatiso, & Kassie, 2019).…”
Section: Introductionmentioning
confidence: 99%
“…An improvement in rice productivity and production through producing and developing improved rice varieties is a vital strategy in addressing this shortfall. This is important in achieving a more comprehensive economic development, food security and poverty reduction in the country (Sheahan & Barrett, 2017; Shiferaw, Kassie, Jaleta, & Yirga, 2014; Wossen, Gatiso, & Kassie, 2019).…”
Section: Introductionmentioning
confidence: 99%
“…Soil conservation practices offer smallholder farmers an opportunity to improve soil fertility and sustainably increase yields while also conserving the environment, i.e., these are considered as climate-smart practices [12][13][14][15]. The adoption of agricultural technologies and management practices is widely recognized in improving the productivity and welfare of farmers, as exemplified in the Asian green revolution [16][17][18][19]. Despite the importance of agricultural technologies, particularly conservation practices, such as animal manure, crop residue retention, intercropping, and crop rotation for soil fertility management and climate-smart agriculture, farmers adoption decisions have not been adequately understood.…”
Section: Introductionmentioning
confidence: 99%
“…Many studies have shown that crop yield per N fertilizer use is relatively low in African countries [45,56,61,74,75]. Therefore, as has been realized in developed countries (Figure 9), developing countries need to increase the use of organic fertilizer, as this is the best alternative to offset the economic and environmental costs of using inorganic fertilizers [43,44,46,120]. Organic fertilizer (from animal and plant residues) is currently the most sustainable means of improving soil fertility and increasing food supply.…”
Section: Organic Fertilizer Use As a Sustainable Tool For Bioeconomymentioning
confidence: 99%
“…Many recent studies have reported that organic fertilizer significantly increased the soil pH and the concentrations of nitrogen, phosphorus, potassium, calcium, and magnesium when compared with inorganic fertilizer (46,72). On the contrary, some authors advise against the total eradication of inorganic fertilizer, especially in regions that have poor soils, including Africa, and recommend that organic fertilizer be supplemented with a minimal amount of inorganic fertilizer in order to achieve optimal production [44,46]. This has been supported by other scholars, who reported that the best proportion of fertilizer application for the African Savannah soils, for instance, is 1 organic to 3 inorganic fertilizers [49,50].…”
Section: Organic Fertilizer Use As a Sustainable Tool For Bioeconomymentioning
confidence: 99%
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