How labour organization may affect technology adoption: an analytical framework analysing the case of integrated pest management

Integrated Pest Management (IPM) is an important component of sustainable agriculture. Farmers who switch from a more capital-intensive pesticide-based pest management strategy to IPM have to substitute capital with labour. The adoption of IPM will therefore depend, among other things, on the opportunity costs of labour. A simple model analyses the trade-off between IPM and current farmers' best practice in developing countries. Modifications of the model include different forms of labour organization in pest management, such as owner operated and short- and long-term labour contracts. The implications are that agricultural policies, environmental policies, and labour market policies can go hand in hand. Unfortunately, this will be more likely at a higher level of original pesticide use and hence a higher level of environmental costs.