Agric. Econ. - Czech, X:X | DOI: 10.17221/473/2024-AGRICECON

Can sustainable practices optimise fertiliser use and economic efficiency? A micro-panel analysisOriginal Paper

Faruque As Sunny ORCID...1, Juping Lan ORCID...2, Mohammad Ariful Islam ORCID...3
1 School of Management, Zhejiang University, Hangzhou, P.R. China
2 School of Two Mountains, Lishui University, Lishui, P.R. China
3 Agricultural Economics Division, Bangladesh Rice Research Institute, Gazipur, P.R. Bangladesh

The intensification of agricultural practices in Bangladesh has caused significant environmental challenges. This has also undermined farmers' economic sustainability, mainly due to the excessive use of subsidised chemical fertilisers. To address these issues and align with the United Nations Sustainable Development Goals (SDGs), Bangladesh has prioritised the adoption of sustainable farming practices, including the recommended fertiliser application (RFA). However, whether the adoption of RFA ensures economic sustainability remains uncertain. This study evaluates how the Bangladesh Rice Research Institute's (BRRI) proposed RFA affects fertiliser use and cost-efficiency. Drawing on five years (2017–2021) of panel data from 2 025 households across three acidic soil regions in Dinajpur, the findings reveal that RFA adoption reduces fertiliser use by 12% while improving cost efficiency by 4.9–5.1%. These results highlight the potential of RFA to mitigate environmental degradation while enhancing economic outcomes, thereby supporting the SDG agenda. In light of these benefits, the study offers key insights for policymakers and development practitioners, emphasising the need for targeted interventions to accelerate RFA adoption and promote sustainable agriculture.

Keywords: Bangladesh; control function; correlated random effects; efficiency; stochastic frontier cost function; sustainable agriculture

Received: December 10, 2024; Revised: August 25, 2025; Accepted: September 11, 2025; Prepublished online: January 9, 2026 

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