Details

Autor(en) / Beteiligte

• Michelson, Hope
• Fairbairn, Anna
• Ellison, Brenna
• Maertens, Annemie
• Manyong, Victor

Titel

Misperceived quality: Fertilizer in Tanzania

Ist Teil von

• Journal of development economics, 2021-01, Vol.148, p.102579, Article 102579

Ort / Verlag

Elsevier B.V

Erscheinungsjahr

2021

Link zum Volltext

Quelle

Elsevier ScienceDirect Journals Complete

Beschreibungen/Notizen

• Fertilizer use remains below recommended rates in most of Sub-Saharan Africa, contributing to low crop yields and poverty. We explore the role of fertilizer quality. We interviewed fertilizer sellers in an important agricultural region in Tanzania and sampled their fertilizer to establish that the nutrient content of fertilizers is good, meeting industry standards. However, we find farmers’ beliefs to be inconsistent with this reality. Beliefs about adulteration push down farmer willingness-to-pay for fertilizer; with farmers willing to pay more if quality is verified. In addition, we find some evidence of a quality inference problem: many fertilizers have degraded appearance, and farmers appear to rely on these observable attributes to (incorrectly) assess unobservable nutrient content. Market prices reflect neither nutrient content nor degradation in appearance, even in competitive markets. Our results suggest the existence of an equilibrium where farmer beliefs about fertilizer are inconsistent with the truth, and seller incentives to invest to alter beliefs are limited, motivating future research into the origins and persistence of such an equilibrium. •Tests of fertilizer procured from local shops indicate that it is good quality - meeting nitrogen content standards.•Farmer WTP for fertilizer increases in response to information that the nutrient quality has been verified.•Farmers lower their WTP for fertilizer when it looks bad, when it is visibly clumped, powdered, and discolored.•Market prices reflect neither observable nor unobservable fertilizer quality.•Findings suggest existence of an equilibrium where farmers' beliefs about fertilizer diverge from the truth.