Factors influencing farmers׳ adoption of energy-based water pumps and impacts on crop productivity and household income in Pakistan

The current study is based on comprehensive cross sectional data set collected through field survey from all the four major provinces of Pakistan i.e. Punjab, Sindh, KPK and Balochitan. In total 950 farmers were interviewed. This paper attempts to examine the factors that influence farmers׳ choice of water pumps (e.g. electric, diesel, solar photovoltaic (PV) or biogas), and to assess the impact of these water pumps on crop productivity, household income, and poverty. The paper uses the multivariate probit model and propensity score matching approach in order to achieve these objectives. The empirical results indicate that educated, younger, and wealthier farmers are more likely to adopt alternate energy-based water pumps for irrigation. Access to credit facilities and frequent hours of load shedding are key factors influencing a farmer׳s decision to adopt alternative energy-based water pumps rather than relying on electricity. Alternative energy sources have positive and significant impacts on the productivity of wheat, rice and maize crops and on household income. The use of alternative energy sources for water pumping has resulted in the reduction of poverty in the range of 11–20%. The study has important policy implications. The current energy crisis in Pakistan has adversely affected farming operations and in turn crop yield, and the use of water pumps for irrigation based on alternative energy sources has increased crop productivity. Access to these renewable energy technologies for water pumping should be encouraged through subsidies and easy availability of credit facilities, as the majority of farmers in Pakistan are resource-poor with small landholdings.