Is Organic Agriculture and Fair Trade Certification a way out of Crisis? Evidence from Black Pepper Farmers in India

Priyanka Parvathi and Hermann Waibel

No 209209, 55th Annual Conference, Giessen, Germany, September 23-25, 2015 from German Association of Agricultural Economists (GEWISOLA)

Abstract: This article examines the impact of a joint organic and fair trade certification on productivity and material costs based on data collected from 277 smallholder black pepper farmers in India. We estimate a multinomial endogenous switching regression along with a counterfactual analysis to ascertain the effects of certification. Our results indicate that certified farmers have higher yields. Counterfactual study shows that conventional farmers can increase their yields by 35% with less than half the costs by venturing into organic and fair trade networks. Further, treatment and transitional heterogeneity effects reveal that a joint organic and fair trade certification has the strongest effect on productivity for the less successful farmers.

Keywords: Crop Production/Industries; Environmental Economics and Policy; Productivity Analysis (search for similar items in EconPapers)
Pages: 28
Date: 2015
New Economics Papers: this item is included in nep-agr, nep-dcm, nep-eff and nep-int
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:gewi15:209209

DOI: 10.22004/ag.econ.209209

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