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CABI Book Chapter

Natural resource management in agriculture: methods for assessing economic and environmental impacts.

Book cover for Natural resource management in agriculture: methods for assessing economic and environmental impacts.


This book examines methodological difficulties and presents practical methods that can be used in the assessment of the economic and environmental impacts of natural resource management (NRM) in agriculture. Following an introduction, part II (chapters 2-5) examines the valuation of ecosystem services and the measurement of biophysical indicators of NRM impacts. Part III (chapters 6-8) introduces ...


Chapter 11 (Page no: 245)

Assessing economic and environmental impacts of NRM technologies: an empirical application using the economic surplus approach.

This chapter addresses methodological and empirical complexities in assessing the economic and environmental impacts of crop and resource management research through a case study of groundnut production technology (GNPT) in central India. The GNPT package is described. Data was collected from 355 farm households in Maharashtra for the 1994/95 crop season. To quantify the returns to investment on research and technology exchange, three aspects were examined: (1) benefits (both economic and environmental) accruing from the research and technology exchange programme; (2) adoption rates and the spread of different components of GNPT; and (3) research and technology exchange cost involving research partnerships among international and national research programmes as the extension sector. Economic surplus and distribution welfare gains were estimated by assuming a parallel shift in the supply function due to investment in the research and technology development. Internal rates of return, net present values and benefit-cost ratios were computed under three options: (1) full adoption of the GNPT package; (2) adoption of only management practices; (3) and adoption of only land management with other practices remaining the same. Because environmental effects were not measured in monetary terms, two sensitivity analyses were carried out under scenarios related to net positive and negative environmental effects. The case study illustrates the critical importance and use of qualitative information in understanding additional environmental and long-term effects due to adoption of natural resource management technologies. The results show that if environmental effects reduced fully-accounted unit costs by just 10% more than market effects, the net present value of the GNPT would increase by US$0.4 million and the internal rate of return would increase by 1%.

Other chapters from this book

Chapter: 1 (Page no: 3) Assessing the impacts of natural resource management interventions in agriculture: concepts, issues and challenges. Author(s): Freeman, H. A. Shiferaw, B. Swinton, S. M.
Chapter: 2 (Page no: 19) Valuation methods and approaches for assessing natural resource management impacts. Author(s): Shiferaw, B. Freeman, H. A. Navrud, S.
Chapter: 3 (Page no: 53) Measurable biophysical indicators for impact assessment: changes in soil quality. Author(s): Pathak, P. Sahrawat, K. L. Rego, T. J. Wani, S. P.
Chapter: 4 (Page no: 75) Measurable biophysical indicators for impact assessment: changes in water availability and quality. Author(s): Sahrawat, K. L. Padmaja, K. V. Pathak, P. Wani, S. P.
Chapter: 5 (Page no: 97) Biophysical indicators of agro-ecosystem services and methods for monitoring the impacts of NRM technologies at different scales. Author(s): Wani, S. P. Piara Singh Dwivedi, R. S. Navalgund, R. R. Ramakrishna, A.
Chapter: 6 (Page no: 127) Econometric methods for measuring natural resource management impacts: theoretical issues and illustrations from Uganda. Author(s): Pender, J.
Chapter: 7 (Page no: 155) Assessing economic impacts of natural resource management using economic surplus. Author(s): Swinton, S. M.
Chapter: 8 (Page no: 175) Bioeconomic modelling for natural resource management impact assessment. Author(s): Holden, S. T.
Chapter: 9 (Page no: 199) Valuing soil fertility change: selected methods and case studies. Author(s): Drechsel, P. Giordano, M. Enters, T.
Chapter: 10 (Page no: 223) Evaluating the impacts of watershed management projects: a practical econometric approach. Author(s): Kerr, J. M. Chung, K. R.
Chapter: 12 (Page no: 269) Assessing the economic and environmental impacts of conservation technologies: a farm-level bioeconomic modelling approach. Author(s): Shiferaw, B. Holden, S. T.
Chapter: 13 (Page no: 295) Assessing the impacts of natural resource management policy interventions with a village general equilibrium model. Author(s): Holden, S. T. Lofgren, H.
Chapter: 14 (Page no: 321) The concept of integrated natural resource management (INRM) and its implications for developing evaluation methods. Author(s): Douthwaite, B. Ekboir, J. M. Twomlow, S. J. Keatinge, J. D. H.
Chapter: 15 (Page no: 341) NRM impact assessment in the CGIAR: meeting the challenge and implications for CGIAR centres. Author(s): Kelley, T. G. Gregersen, H. M.
Chapter: 16 (Page no: 361) Towards comprehensive approaches in assessing NRM impacts: what we know and what we need to know. Author(s): Swinton, S. M. Shiferaw, B. Freeman, H. A.

Chapter details

  • Author Affiliation
  • International Crops Research Institute for the Semi-Arid Tropics (ICRISAT), Patancheru 502 324, Andhra Pradesh, India.
  • Year of Publication
  • 2005
  • ISBN
  • 9780851998282
  • Record Number
  • 20043206493