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Economic Impact Assessment of Oilseed IPM Programs

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Technological Innovations in Major World Oil Crops, Volume 2

Abstract

This chapter focuses on economic assessment of oilseed integrated pest management (IPM) programs. It provides an integrated approach for assessing potential economic impacts of oilseed IPM with an application to olive IPM program in Albania. The assessment approach includes: (1) assessing potential farm-level economic impacts; (2) assessing countrywide, market-level impacts; and (3) examining factors that influence the likely rate of IPM adoption. Economic benefits are projected for producers, consumers, and the country as a whole. Economic surplus analysis of technical change in the Albanian olive market is used to estimate the size and distribution of research benefits, incorporating simultaneous shifts in olive supply and demand due to IPM research-induced changes in per unit costs and in product quality, and research-induced spillovers to nontarget zones. With slight modifications, the assessment approach described in this chapter can be easily applied to evaluating IPM on various oilseed crops in different regions of the world.

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Notes

  1. 1.

    Multiyear plan for crop protection.

  2. 2.

    Olive statistics reported in this section are taken from the FAOSTAT online database unless otherwise cited.

  3. 3.

    Of which \( {P}_{0}^{\prime }fa{P}_{0}\)is a transfer from consumers.

  4. 4.

    Norton et al. (1987) estimated the effects of an exogenous shift in demand due to population and income growth.

  5. 5.

    Mission funds were channeled through the USAID-funded IPM Collaborative Research Support Program (IPM CRSP).

  6. 6.

    A horizontal (quantity direction) supply shift can be converted to an equivalent vertical (price direction) shift by dividing by the supply elasticity, i.e., k  =  j/ε, where j is the percentage shift in the quantity direction (j percent increase in yield) and ε is the supply elasticity. As discussed by Alston et al. (1995), unreasonably large k shifts may be implied by combining a j shift with a very small elasticity. Yield shifts translate into price direction shifts most naturally when supply elasticity is one.

  7. 7.

    The pesticide-based baseline scenario can be thought of representing what Albanian olive production would soon be, without IPM research in the country.

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Acknowledgments

The authors would like to thank Doug Pfeiffer, Josef Tedeschini, and Charlie Pitts for advice and assistance with the study on which this paper is based, and George McDowell, Greg Luther, and Darrell Bosch for comments on the research. The financial assistance of the US Agency for International Development (USAID) and its Albania mission through IPM CRSP Grant No. LAG-G-00-93-00053-00 is gratefully acknowledged.

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Authors and Affiliations

  1. Virginia Polytechnic Institute and State University, Blacksburg, VA, 2406, USA

    Lefter Daku, George W. Norton & Daniel B. Taylor

  2. Sher-e-Kashmir University of Agricultural Sciences and Technology of Jammu, FOA, Main Campus, Chatha, Jammu, 180009, India

    Rajinder Peshin

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  1. Lefter Daku
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Correspondence to Lefter Daku .

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  1. Agricultural Sciences & Technology, FOA Chatha, Sher-e-Kashmir University of, Jammu, 180009, India

    S.K. Gupta

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Daku, L., Peshin, R., Norton, G.W., Taylor, D.B. (2012). Economic Impact Assessment of Oilseed IPM Programs. In: Gupta, S. (eds) Technological Innovations in Major World Oil Crops, Volume 2. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-0827-7_7

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