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Do fertilizer subsidies crowd out organic manures? The case of Malawi
Article first published online: 10 APR 2012
© 2012 International Association of Agricultural Economists
Volume 43, Issue 3, pages 303–314, May 2012
How to Cite
Holden, S. and Lunduka, R. (2012), Do fertilizer subsidies crowd out organic manures? The case of Malawi. Agricultural Economics, 43: 303–314. doi: 10.1111/j.1574-0862.2012.00584.x
Data Appendix Available OnlineA data appendix to replicate main results is available in the online version of this article. Please note: Wiley-Blackwell, Inc. is not responsible for the content or functionality of any supporting information supplied by the authors. Any queries (other than missing material) should be directed to the corresponding author for the article.
- Issue published online: 19 APR 2012
- Article first published online: 10 APR 2012
- Received 7 February 2011; received in revised form 8 September 2011; accepted 31 October 2011
- Input subsidies;
- Organic manure;
- Input substitution
We assess the impacts of the Malawian Farm Input Subsidy Program on manure use at the farm plot level using more than 3,000 farm plot observations from six districts in central and southern Malawi over three years (2006, 2007, and 2009). The probabilities and intensities of manure use were investigated with the correlated random effects (CRE) probit and tobit models. The endogeneity of access to fertilizer subsidies and fertilizer use intensity was controlled for with a control function approach. Both the probability of manure use and intensity of manure use were positively correlated with the intensity of fertilizer use. A 1% increase in fertilizer use intensity is associated with a 1.94%–1.96% increase in the intensity of manure use outside the subsidy program and a 0.62%–1.66% increase in manure use with the subsidy program. A 1% increase in average fertilizer price was associated with a 0.43%–0.76% increase in the probability of manure use and a 3.5%–5.3% increase in the intensity of manure use.