Total Factor Energy Productivity and Efficiency Changes of the Gher (Prawn-Carp-Rice) Farming System in Bangladesh: A Stochastic Input Distance Function Approach

Abstract

This paper measures energy performance, Total Factor Energy Productivity (TFEP), technical change (TC) and energy efficiency change (EEC) of the gher (prawn-carp-rice) farming system using a unique panel data of 90 farmers covering a 14 year period (2002–2015) from southwest Bangladesh by employing a stochastic input distance function approach. Results reveal that all inputs contribute significantly to energy productivity of the gher farming system with male labor energy input being the major contributor followed by energy from machineries, seeds and chemicals. Energy performance of the High Yielding Variety (HYV) rice enterprise is highly efficient whereas the prawn enterprise is highly energy inefficient. Furthermore, energy performance of the HYV rice enterprise improved significantly over time. Significant competition exists between HYV rice and prawn enterprises as well as prawn and carp enterprises. Experience and education significantly improve energy efficiency whereas gher area and household size significantly reduces it. TFEP grew at the rate of 2.56% per annum (p.a.) solely powered by technical progress at the rate of 2.57% p.a. Gher system can be sustained in the long-run driven by technical progress and improvements in energy productivity of the HYV rice enterprise. Policy implications include investments in R&D and education targeted at the gher farmers.