Does Solar-Powered Irrigation System Usage Increase the Technical Efficiency of Crop Production? New Insights from Rural Areas

Abstract

Fossil fuel and electricity-powered irrigation techniques boost the water availability expense and increase greenhouse gas emissions. Especially in developing countries, solar-powered irrigation is becoming more popular as a response to the growing energy and environmental issues associated with agriculture systems. The existing study used data from 1080 wheat farmers in Balochistan, Pakistan, to investigate the impact of solar-powered irrigation system (SPIS) usage on the technical efficiency (TE) of wheat production. The TE of wheat production is estimated using a stochastic frontier production function, and the potential self-selectivity bias is addressed using an endogenous switching regression model. The findings indicated that 13.7% of the wheat cultivators assessed used SPISs to produce their crops. Using an endogenous switching regression model shows that SPIS usage increases the TE of wheat growers by 6.657%, after controlling for self-selection bias. While using SPISs, wheat farmers with large farms and farming familiarity had stronger positive effects on TE. The results highlight the need for more investigation and research into evidence-based good practice for SPIS solutions at the site level to ensure that the rollout of modern equipment not only drives the energy sector forward but also contributes significantly to our level playing field and sustainable environment.