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Organic Disaster

by Alex Tabarrok

Marginal Revolution

7 Sep 2021
1

Sri Lanka’s President abruptly banned chemical fertilizers earlier this year in a bid to become 100% organic. The ban has resulted in reduced production and soaring prices that, together with declining tourism and the pandemic, have created an economic crisis.

The government has responded to the soaring prices not by reversing its decree but in the usual way by imposing price controls, attacking “hoarders” and seizing stocks of agricultural commodities like sugar.

Organic farming has its place but it takes a lot of human capital to make it work and overall it results in lower yield and thus more land used. Nor is organic farming less polluting per unit of output. See this piece from the Annual Review of Resource Economics.

Photo Credit: "Tea plantations near Kandy Sri Lanka" by Mal B is licensed under CC BY-ND 2.0

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1 comment

  • Greg Youll
    Your analysis of organic farming is flawed. It's incomplete. You looked at output per acre, knowledge required (human capital??). Where do you examine the environmental cost and damage of fertilizer production, where do you examine the environmental…
    See more
    • 36 w
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