Adoption impact of solar based irrigation facility by water-scarce northwestern areas farmers in Bangladesh: Evidence from panel data analysis

Abstract

Introduction: Fossil fuel and electricity-based irrigation practices contribute to greenhouse gases and add substantial costs to water access. Solar-powered irrigation is spreading globally, notably in developing countries, as a solution to the rising energy and climate concerns related to agriculture. This policy perspective devoted to examining the impact of the solar irrigation facilities (SIF) adoption on irrigation cost and return on investment (ROI) based on seven years of panel data seeks to contribute to the efforts to propel solar irrigation toward delivering on the myriad of promises. Methods: Panel logistic regression was employed to analyze adoption determinants, while adoption impact was evaluated through the propensity score matching with the difference-in-difference (PSM-DID) method. In addition, the time and panel fixed effect DID and doubly robust DID model was also used for robustness check. Results: The result reveals that SIF adoption significantly increased ROI by 20% to 30% and reduced irrigation costs by 21% to 30%. Conclusion: The findings call for further research and analysis on evidence-based best practices for solar irrigation solutions at the farm level so that the dissemination of this revolutionary technology, apart from contributing to the advancement of the energy sector, also plays a vital role in driving us towards establishing a more equitable and sustainable world.