Urea Subsidies and the Decision to Allocate Land to a New Fertilizing Technology: Ex-ante Analysis in Ecuador

Jorge J. Avila-Santamaria and Maria P. Useche

No 229851, 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas from Southern Agricultural Economics Association

Abstract: This ex-ante study examines how urea subsidies affect the adoption of a more efficient but labor-intensive existing alternative, Urea Deep Placement (UDP), in some of the major growing regions of Ecuador (Daule and Santa Lucia cantons, Guayas province). A government subsidy covers around 30% of urea fertilizer cost since 2007. Such a public intervention may be favoring to the traditional broadcasting fertilization method, which demands urea more intensively, crowding out improved innovations (i.e. UDP) and becoming an adverse selection mechanism.

Keywords: Agricultural and Food Policy; Institutional and Behavioral Economics; International Development; Land Economics/Use; Public Economics; Research and Development/Tech Change/Emerging Technologies (search for similar items in EconPapers)
Pages: 27
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:ags:saea16:229851

DOI: 10.22004/ag.econ.229851

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