Organic certification, agro-ecological practices and return on investment: Farm level evidence from Ghana

Type Working Paper
Title Organic certification, agro-ecological practices and return on investment: Farm level evidence from Ghana
Author(s)
Publication (Day/Month/Year) 2012
URL https://www.econstor.eu/bitstream/10419/68448/1/733245927.pdf
Abstract
The recent empirical literature on economic sustainability of certified export crops shows that
certification standards that enhance yields are important for improving farm revenues and
farmer welfare. However, limited evidence exists on the impact of organic certification on the
adoption of agro-ecological practices. In this study, we use unique farm-level data from
Ghana to examine the impact of organic certification on the use of agro-ecological practices
to improve environmental conditions, as well as how using these measures affect farm
outcomes such as return on investment. In the former, we utilize an endogenous switching
regression approach to account for selection bias due to unobservable factors. Our empirical
results reveal that organic certification increases agro-ecological practice use, although from a
very low starting point. Using a generalized propensity score approach, we show that there is
a nonlinear relationship between the intensity of agro-ecological practice use and return on
investment.

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