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Assessing the Impact of International Natural Resource Management Research - The Case of Zero Tillage in India’s Rice-Wheat Systems

Vijay Laxmi and Olaf Erenstein ()
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Vijay Laxmi: Indira Gandhi Institute of Development Research

Microeconomics Working Papers from East Asian Bureau of Economic Research

Abstract: A conservative ex-ante assessment of supply-shift gains alone (excluding social and environmental gains), shows that the investment in zero tillage (ZT) R&D by the Rice-Wheat Consortium and CIMMYT was highly beneficial with a benefit-cost ratio of 39, a net present value of US$ 94 million and an internal rate of return 57%. Sensitivity analysis highlights the influential role of the yield gain, the contribution of reduced tillage (i.e. partial adoption) and the assumed time-lag. Significant positive spillovers of sunk ZT R&D costs both previous and from elsewhere - also contributed to the high returns. The case thereby highlights the potential gains from successful technology transfer and adaptation. The case however also underscores that international NRM research can have a high return, particularly when it has wide applicability.

Keywords: natural resource management research; impact assessment; economic surplus; zero tillage (search for similar items in EconPapers)
JEL-codes: Q11 Q12 Q16 (search for similar items in EconPapers)
Date: 2006-01
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