Impact Evaluation of Alternative Irrigation Technology in Crete: Correcting for Selectivity Bias

The interest in promoting food and water security through development projects has led to the need to evaluate the impact of these projects. This study evaluates the impact from transitioning to a modern irrigation technology. Deciding to adopt or not an alternative irrigation technology (sprinklers...

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Bibliographic Details
Published in:Environmental & resource economics 2021-07, Vol.79 (3), p.551-574
Main Authors: Vrachioli, Maria, Stefanou, Spiro E, Tzouvelekas, Vangelis
Format: Article
Language:English
Subjects:
Adoption of innovations
Alternative technology
Averages
Bias
Development programs
Development projects
Economic Policy
Economics
Economics and Finance
Environmental Economics
Environmental Law/Policy/Ecojustice
Environmental Management
Farm buildings
Farmers
Farms
Food security
Impact evaluation
Irrigation
Irrigation technology adoption
Sample selection
Selection bias
Selectivity
Sprinkler irrigation
Sprinklers
Stochastic frontier
Technical efficiency
Technology
Water
Water conservation
Water security
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Summary:The interest in promoting food and water security through development projects has led to the need to evaluate the impact of these projects. This study evaluates the impact from transitioning to a modern irrigation technology. Deciding to adopt or not an alternative irrigation technology (sprinklers) is not necessarily a random determination. Therefore, selection bias can be present and this can lead to biased estimates. In this study, we apply methodological specifications to correct for self-selectivity biases. Then, we measure and compare the technical efficiency scores from adopters and non-adopters. The empirical application uses data covering 56 small-scale greenhouse farms in Crete (Greece) for the cropping years 2009-2013. The results reveal that the average technical efficiency for farmers who adopted sprinkler irrigation is lower than the group of non-adopters, when the presence of selectivity bias cannot be rejected. This implies that either the farmers need more time to incorporate the know-how of the newly acquired technology or they become less motivated after the adoption. Consequently, agricultural water saving technologies need to be promoted in combination with support to the farmers, so they can cope with the lower performance in the first years after adoption.
ISSN:1573-1502
0924-6460
1573-1502
DOI:10.1007/s10640-021-00572-y