Targeting Technology to Increase Smallholder Profits and Conserve Resources

Experimental Provision of Laser Land-Leveling Services to Indian Farmers

Bibliographic Data

ID4362981
AuthorsTravis J Lybbert (0000-0002-4905-4881, University of California, Davis), Nicholas Magnan (0000-0002-5294-2126), David J Spielman (0000-0002-6889-7358), Anil K Bhargava (0009-0003-3114-8868, University of Michigan), Kajal Gulati (Impaq International (United States))
Year2018
Volume66
Issue2
Pages265-306
Publication date2018-01-01
Open AccessNo
TypeARTICLE
VenueEconomic Development and Cultural Change (JOURNAL)
Journal identifiersISSN: 0013-0079 • E-ISSN: 1539-2988
PublisherUniversity of Chicago Press (PUBLISHER • US)
DOI10.1086/695284
OpenAlexW2776696557
LanguageEN
Citations received7
References cited27

With heterogeneous demand and consumption externalities, market segmentation and targeting can improve social welfare. We use a selective trial for laser land leveling (LLL) in India to understand such targeting strategies. We elicit farmer demand for and benefits from LLL services. LLL reduces groundwater extraction by 24%, with comparable fuel savings from reduced pumping. To leverage positive externalities, we combine farmer demand, LLL pumping effects, and service provider costs to evaluate the cost-effectiveness and other impacts of potential targeting strategies. A first-hour LLL discount—a second-degree price discrimination strategy—emerges as the most cost-effective targeting strategy for reducing groundwater extraction

Agricultural economics · Business · Consumption (sociology) · Economics · Environmental economics · Externality · Industrial organization · Leverage (statistics) · Microeconomics · Natural resource economics · Welfare · Auction Theory and Applications · Computer Science · Smart Parking Systems Research · Water resources management and optimization

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