Renewable Energy 167 (2021) 433e439

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Renewable Energy
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Financial and factors demand analysis of solar powered irrigation

system in Boro rice production: A case study in Meherpur district of
Bangladesh
Jaber Rana a, *, M. Kamruzzaman a, Moinul Hosain Oliver b, Kaynath Akhi a
a
Department of Agricultural Economics, Bangabandhu Sheikh Mujibur Rahman Agricultural University, Gazipur, 1706, Bangladesh
b
Department of Agricultural Engineering, Bangabandhu Sheikh Mujibur Rahman Agricultural University, Gazipur, 1706, Bangladesh

a r t i c l e i n f o a b s t r a c t

Article history: Solar powered irrigation system (SPIS) has emerged as a promising technology in Bangladesh. The aim of
Received 24 April 2020 this study to find the financial and environment importance of SPIS. This study also analyzes the factor
Received in revised form demand and elasticity of substitute for SPIS irrigation in Boro rice production. The financial analysis
26 October 2020
indicate that SPIS user had significantly higher gross return, net return and benefit cost ratio (BCR) than
Accepted 18 November 2020
Available online 20 November 2020
diesel powered irrigation system (DPIS) user. The value of BCR for SPIS user was found 1.313 and 1.029 for
DPIS user. Replacing half of diesel powered irrigation system can reduce more than one million carbon
emission in environment from agricultural source. The result also revealed that irrigation system is
Keywords:
Solar powered irrigation system
highly inelastic and the result showed that an increase and decrease in price of irrigation wouldn’t have
Boro rice significant impact on demand of irrigation. The result indicates that for Boro rice production farmer had
Financial impact to use required amount of irrigation in field. Complementary relationship was found between seed and
Carbon dioxide emission human labour, irrigation and human labour. Substitute relationship was found between machinery and
Translog cost function seed, machinery and irrigation, machinery and human labour, machinery and fertilizer, seed and irri-
gation, seed and fertilizer, irrigation and fertilizer, human labour and fertilizer.
© 2020 Elsevier Ltd. All rights reserved.

1. Introduction
Over the last few decades, Bangladesh has made considerable
progress in increasing agricultural production despite extreme
population pressures, limited land resources, and frequent natural
disasters. Significant improvement has been made in food security
by increasing annual rice production from 151 kg per capita in 1995,
to 217 kg per capita in 2010 [1]. This increase in production can be
credited to greater utilization of irrigation to ensure water avail-
ability and increased cropping intensity rather than increase in
cultivated land [2]. Field irrigation systems are energy intensive,
depending upon the system selected, cropping calendar, and agri-
cultural land. ln Bangladesh, diesel is used to power about 90% of
irrigation pumps and irrigates 70% of the area. This amounts to 1
million tons of diesel costing more than 900 million [3]. A large
amount of agricultural areas which require irrigation especially
* Corresponding author. Bangabandhu Sheikh Mujibur Rahman Agricultural
University, Gazipur, 1706, Bangladesh.
E-mail address: Jaberrana3403@gmail.com (J. Rana).
Char lands, coastal areas and hilly areas do not have access to grid
electricity. In Bangladesh, during the rainy season, demand for
electricity increase by almost a quarter and It is regarded as peak
season of electricity. Over 25% of total electricity used in irrigation
purpose in Bangladesh [4].
All the countries of the world are looking for new source of
energy such as renewable (Solar, wind, geo thermal and wave en-
ergies) and nuclear due to the scarcity of conventional energy.
Whereas developed countries working on nuclear energy, but a
developing country like Bangladesh have not enough resource to
work on expensive source of energy. So, the developing country like
Bangladesh are working mainly on renewable resource as a new
means of energy source [5]. In Bangladesh, Government introduced
solar powered irrigation system in some specific area. According to
a study, panel cost was major cost (45%) followed by installation
(18%), motor (16%), pump (10%) and pipe and fittings (4%) cost [6].
According to Infrastructure Development Company Limited,
installing 50 000 solar irrigation pumps in Bangladesh could save
the country 450 million liters of diesel, and reduce emissions by a
million tons of CO2 per annum [7]. Another advantage of solar
powered system is that it uses rechargeable battery in system. Thus,

https://doi.org/10.1016/j.renene.2020.11.100
0960-1481/© 2020 Elsevier Ltd. All rights reserved.
J. Rana, M. Kamruzzaman, M. Hosain Oliver et al. Renewable Energy 167 (2021) 433e439

the solar photovoltaic (PV) water pumping system is one of the
reliable, efficient and cost-effective irrigation systems that meet
energy demands and contribute to the socio-economic develop-
ment of Bangladesh [8]. But, main advantages of solar pumping
systems for a farmer include unattended operation, low operating
cost, easy installation, low maintenance, and long life. On the other
hand, high fuel and maintenance cost have been long-standing
problems with diesel engine [9]. In case of looking beyond the
installation price, solar powered irrigation cost 22e56% lower than
diesel powered irrigation system. At remote places, solar pump can
provide a clever solution for low cost irrigation system. While the
initial capital cost of solar pump may be far greater than a generator
but because of low maintenance and zero fuel costs, solar power
system can be cheaper option at a long run [10]. On the other hand,
solar power irrigation system can greatly reduce the water wastage
and human intervention in irrigation system [11]. For the first 5
years, the life cycle cost was lower for diesel powered pump. But
after five years, the life cycle cost of solar powered cost was lower
than diesel powered pump. Net present value benefit cost ratio, and
internal rate of return of solar pump were found higher than diesel-
operated pump [6]. A study in Bangladesh found that Upfront cost
of the solar pumping systems potentially hinders to popularize the
systems in rural areas but private companies, bank and government
can come forward for a solution that can fit to rural people of
Bangladesh [8]. Though solar powered irrigation is a prominent
technology in Bangladesh, there was little study on the farmers’
aspect, who will purchase water from the solar powered irrigation
system vendors. Therefore, it was crucial to do more specific
research on this field for understanding of the use of solar powered
irrigation on the small scale farmers. This paper highlight the
financial impact of solar powered irrigation system on Boro rice
production as well as comparative analysis between solar powered
and diesel powered irrigation system in Carbon dioxide emission.
This study also finds out farmers’ production behavior doing factors
demand elasticity analysis.
The reminder of this paper is arranged as follow. Details
research material and method are discussed in section 2. Section 3
present the result of this study and section 4 cover the conclusion
and discussion of this study.
Null Hypothesis: Total cost, total return, BCR, gross margin and
net margin do not significantly differ between solar powered irri-
gation system and diesel powered irrigation system.
To test the null hypothesis, an independent t-test was conducted
between solar powered irrigation user and diesel powered irriga-
tion system user.
2.2.2. Calculation of carbon dioxide emission
To study the impact of diesel powered irrigation system in
environment, carbon dioxide emission was calculated from diesel
powered irrigation pump during 2009-10 to 2018-19. Carbon di-
oxide (CO2) emission for diesel powered irrigation system were
calculated from total diesel consumed by diesel irrigation pump in
a year. In Bangladesh three type of diesel powered irrigation pump
are used viz. Deep tube well, Shallow tube well and low lift pump.
Information about total number of these three type of pump in each
year were collected from Bangladesh Agriculture Development
Corporation. Quantity of diesel required by each type of diesel
operated irrigation pump was calculated by using operation data in
Table 1 [6,15].
Total diesel requirement and total carbon dioxide emission were
calculated using following formula. This following formula used by
different author [6,16] in estimating carbon dioxide emission.
So, Total diesel used for different type of irrigation pump, DU
(DTW, STW and LLP) ¼ TP  DS  HD  DR.
Here, DU ¼ Diesel used in irrigation Pump (liter), TP ¼ Total
pump, DS ¼ Pump used total days per season, HD ¼ Total operated
hour, DR ¼ Diesel required in each hour (liter).
Now, total diesel used for irrigation purpose in a year, TDU ¼
DUDTW þ DUSTW þ DULLP.
Here, TDU ¼ Total diesel used for irrigation purpose (liter);
DUDTW ¼ Diesel used in operating deep tube well pump,
DUSTW ¼ Diesel used in operating shallow tube well pump and
DULLP ¼ Diesel used in operating low lift pump.
Total quantity of carbon dioxide emission was estimated
multiplying 2.6 kg with the total amount of diesel (liter) used for
irrigation purpose by diesel powered irrigation pump. As one liter
of diesel fuel produce 2.6 kg CO2. [16,17].

2. Materials and method 2.2.3. Factor demand analysis

In order to investigate, the effect of solar powered irrigation
2.1. Selection of sample area and samples system in the cost of production, translog cost function analysis was
used. Duality in production economics, linking production and cost
The paper is based on survey data where the study was con- relationships, has permitted researchers to estimate parameters of
ducted during 2019 in Meherpur sadar upazila of Bangladesh. To a cost function and relay the information to the underlying pro-
collect data, a well-designed questionnaire was used about Boro duction function. Cost-function estimation has generally been
rice production using solar powered irrigation system. The study limited to the computation of input demand elasticities and elas-
area was selected based on existence of solar powered irrigation ticities of substitution [18e23]. The translog cost function
practices. In addition, the study area is rural and basically agrarian
communities. This also facilitated easy access to farmers for data Table 1
collection. Simple random sampling was used in the selection of Average operation, fuel and capacity of different type diesel operated irrigation
respondent who participated in the study. Total 70 farmers of solar pump.
powered irrigation system user and 60 diesel powered irrigation Pump Type Parameter Average
system user (DPIS) were interviewed for conducting this study. In
Low lift pump Capacity 7.5 hp
addition, no secondary data were used in this study. Operation time per day 8h
Operation per Season 80 days
2.2. Analytical tool Fuel Used 1.00 L/h
Shallow tube well Capacity 12.50 hp
Operation time per day 12 h
2.2.1. Financial analysis
Operation per Season 80 days
Net margin and benefit cost ration are used in many compara- Fuel Used 1.25 L/h
tive financial analysis [12e14]. Here, in the study, net margin and Deep tube well Capacity 55 hp
BCR were considered to conduct financial analysis. Net margin was Operation time per day 15 h
calculated by deducting total cost (TC) from total revenue (TR). Operation per Season 80 days
Fuel Used 4.5 L/h
Benefit cost ratio was calculated following way: BCR ¼ TR/TC.
434
J. Rana, M. Kamruzzaman, M. Hosain Oliver et al.
approximates the true minimum cost function with a second order
logarithmic Taylor series expansion around variable levels of
output, Y, and input cost, Pi, (i ¼ 1 …. . n). Expressed mathemati-
cally, a cost function, C, in logarithms is of the form:
InC ¼ f (ln Pi, …,lnPn,; InY) where C is cost of production, Y is
output (tons/hectare), Pi are input prices, and In is the natural log.
Here, Pm ¼ price of machinery (power tiller þ bullock cost) (tk/
hectare), Ps ¼ price of seed (tk/hectare), Pw ¼ price of human labour
(tk/hectare), Pi ¼ price of irrigation (tk/hectare), Pf ¼ price of fer-
tilizer (tk/hectare), Po ¼ price of others (tk/hectare).
An explicit translog cost function for Boro rice production
imposing homogeneity (deflating by the cost of insecticide) and
symmetry condition is given below:
lnC ¼ a0 þ am lnPmþ as lnPsþ ai lnPi þ aw lnPwþ af lnPfþ aolnPo þ ay
lnYþ ½ bmm lnP2mþ ½ bss ln Ps 2þ ½ bii ln P2i þ ½ bww ln Pw 2þ ½ bff ln
P2f þ ½ boo ln P20 þ½ byy lnY2þ bms ln Pm * lnPs þ bmi ln Pm * ln
Pi þ bmw ln Pm * ln Pwþ bmf ln Pm * ln Pf þ bmo ln Pm * ln Po þ dmy ln
Pm * lnYþ bsi ln Ps * ln Pi þ bsw ln Ps * ln Pw þ bsf ln Ps * ln Pf þ bsfoln
Ps * ln Po þ dsy ln Ps * lnYþ biw ln Pi * ln Pw þ bif ln Pi * ln Pf þ bio ln Pi
* ln Po þ diy ln Pi * lnY þ bwf ln Pw * ln Pf þ bwo ln Pw * ln Po þ dwy ln
Pw * lnYþ bfo ln Pf * ln Po þ dfy ln Pf * lnY þ doy ln Po * lnY. …. .(III)
In this study, the translog cost equations are estimated with the
following restrictions imposed:
(1) Adding up criteria implying that sum of the cost-shares must
equal unity.
P 2.2.4. Monotonicity conditions
Symbolically, ai ¼ 1
i
X
bij ¼ 0
i input cost share function should be greater than zero (Si ¼ a > 0) at
P the point of approximation. To check monotonicity condition, we
dij$ ¼ $0
i
(2) Zero-degree homogeneity in cost implying that proportional
changes in all input cost leave the factor shares unaltered.
P
Symbolically, bij ¼ 0.
j have any clear economic meaning, but these form the basis for
(3) Symmetry implying that typical properties of neoclassical
production theory are satisfied
Вij ¼ bji
Considering the above-stated restrictions which are placed on
share equation different production structures can be reflected.
(4) Concavity in input price: This implies that the partial elas-
ticity of own price must be negative.
2.2.3. The cost-share equations
According to Ref. [24]; the share of an input in total cost can be
viewed as its share in the total product. This is called Shephard’s
Lemma. Following the Shephard’s Lemma, the cost-minimizing
share equations for the various inputs can be obtained by loga-
rithmically differentiating equation (1II) with respect to input cost.
Now the derived demand equations and the cost share equations
can be presented as.
Sm ¼ am þ bmm lnPm þ bms lnPsþ bmi lnPi þ bmw lnPwþ bmf lnPfþ
dmy lnY …. . (IV)
435
Renewable Energy 167 (2021) 433e439
Ss ¼ as þ bsm lnPmþ bss lnPsþ bsi lnPi þ bsw lnPwþ bsf lnPfþ dsy lnY …
……… (V)
Si ¼ ai þ bim lnPmþ bis lnPsþ bii lnPi þ bwi lnPwþ bfi lnPfþ dyi lnY …
………… (VI)
Sw ¼ aw þ bmw lnPmþ bsw lnPsþ biw lnPi þ bww lnPwþ bfw lnPfþ dwy
lnY … …. (VII)
Sf ¼ af þ bmf lnPmþ bsf lnPsþ bif lnPi þ bwf lnPwþ bff lnPfþ dfy lnY …
… … ….. (VIII)
where Si ¼ Share of the i-th input in total cost.
Several parameters appeared more than once in the cost share
equation and again of all the parameter of the cost share equation
appeared in the translog cost function. The equality of these
parameter is a necessary condition for the system of the equation to
be consistent with the cost minimizing behavior. All the costs
function of rice production was normalized by the other cost that’s
why the six cost shares reduced at five cost shares and all the terms
with other cost were vanished.
The share function was estimated with an iterative seemingly
unrelated regression (ISUR) method, which adjusts for cross
equation contemporaneous correlation. This procedure ensures
that estimates are invariant to the excluded equation and that they
also converge asymptotically to maximum likelihood estimates
[25].
Production theory requires a cost function to be monotonic in
input price [26]. The monotonicity condition requires cost to be non
decreasing in input price. Monotonicity in input price refers that
need co-efficient of all input variable. The coefficient of others
variable can be found by using equation (1) restriction. Mono-
tonicity condition are checked using share function equation.
2.2.5. Factors demand elasticity and elasticity of substitution
In the cost shares equations, the estimated coefficients do not
deriving the estimate of elasticities of substitution and demand
[27]. has demonstrated that the AES between two inputs i and j can
be expressed as.
CiCij
sij ¼ (IX)
CiCj
where Ci ¼ dC=dPi

and sij ¼ d2 C dPidPjwhere sij denotes AES between inputs i and
j. It is seen from the definition that the elasticities of substitution
between any two inputs are symmetric. Above equation has been
given in general terms. Now, for the translog function, the AES and
own price elasticity are given by,
bii þ SiðSi  1Þ
sii ¼ for all i
Si2
bij þ SiSj
sij ¼ for all Isj
SiSj
where i, j ¼ M, B, S, F, I, O.
Positive APES between i and j implies that the factors i and j are
substitutes while that of the negative APES implies that factors i
J. Rana, M. Kamruzzaman, M. Hosain Oliver et al.
and j are complements.
Factors demand elasticity
d ln Xi bii þ SiðSi  1Þ
Eii ¼ ¼ ¼ Si sii
d ln Pi Si
dlnXi bij þ SiSj
Eij ¼ ¼ ¼ Sj sij
dlnPj Si
where Eii and Eij are the own price elasticity and cross price elas-
ticity respectively.
APES between factor i and j measures the normalized response
of a change in the price of the jth factor on the amount demanded of
the ith factor when output held constant but when quantities of all
others factors permitted to vary. Positive APES between input i and j
implies that the factors i and j are substitute. If the value of APES is
negative than it can be interpreted that the factors i and j are
complement. The sign of the partial elasticity of derived demand
also depends on the value of the price elasticity for output demand.
dlnXi=dlnPj and sij take the same sign only if sij > Eij (where Eij > 0 by
a decreasing demand law).
3. Result
3.1. Financial impact of solar powered irrigation system
Financial comparison between solar powered irrigation system
user and diesel powered irrigation system user is given in Table 2.
The result show that BCR of the solar powered system user (1.313) is
higher than diesel power system user (1.096). As well as net margin
of is also higher for solar powered irrigation system user. An in-
dependent sample t-test proved that there have a significant
different exist between solar powered irrigation system user and
diesel powered system irrigation user in BCR, NM, GM analysis.
3.2. Carbon dioxide emission
Carbon dioxide emission during 2009-10 to 2018-19 from diesel
powered irrigation system are presented in Fig. 1. It is observed
from the figure that highest amount carbon emission from diesel
powered irrigation system was during 2011-12 (4.39 million tons)
and lowest amount emission was during 2017-18 (3.64 million
tons). Total number of operational diesel powered irrigation pump
(DTW, STW and LLP) were 1467 thousands during 2011-12 and
1238 thousand during 2017-18. It can be concluded from the Fig. 1
that the effect of diesel pump irrigation on CO2 emission is very
prominent (average 3.65 million tons CO2 added into the Atmo-
sphere of Bangladesh from diesel powered irrigation pump during
2018-19). One of the effective solution for this problem can be solar
powered irrigation pump. Solar powered irrigation system is
pollution free and can be used to mitigate this CO2 emission. If
these diesels powered irrigation system may be replaced with solar
Table 2
Financial comparison between solar powered user and diesel powered user. (tk/hectare).
Component Solar Powered Irrigation system
Variable Cost 84 352
Fixed Cost 28 707
Total Cost 113 059 (6.40***)
Total Return 148 553 (1.95*)
BCR 1.313 (4.263***)
Gross Margin (GM) 51 145 (3.363***)
Net margin (NM) 35 494 (3.88***)
(*, ** & *** indicate 10%, 5% and 1% level of significance respectively).
436
Renewable Energy 167 (2021) 433e439
powered irrigation system, Bangladesh can mitigate huge amount
of CO2 from the agricultural sector. Therefore, solar powered irri-
gation system can be used for sustainable green agriculture in
Bangladesh.
3.3. Cost function estimate
The model suggested for the estimation of the effect of different
cost item in production structure was a logarithmic total cost
translog function which was estimated using SURE. The results of
the estimation of total cost function were presented in Table 3.
These coefficients include the normalized price of machinery,
normalized price of the labor, normalized price of seed, normalized
price of irrigation, normalized price of fertilizer and output. The
coefficient also includes the multiplication of all input with each
other and the square of each input. From the Table 3, the model
shows that price of machinery, price of irrigation, price of fertilizer,
price of seed and price of human labour had positive and significant
impact on total cost. That’s means if the price of machinery, irri-
gation, fertilizer, seed and human labour increase, then the total
cost of rice production will significantly rise. The result wass
comparable with the authors [28e30]. They all found that input
cost variable have normally had a positive relationship with the
total cost. The square of machinery, seed, irrigation, human labour,
fertilizer and human labour price were positive and significant and
also interaction of machinery and irrigation price, machinery and
human labour price, machinery and fertilizer price, seed and irri-
gation price, seed and fertilizer price, irrigation and human labour
price, irrigation price and fertilizer price, human labour price and
fertilizer price have significant and negative impact on the total
cost. The negative sign of interaction co-efficient can be compare
with the [31]; and [28]. They also conducted his research using
ISURE method and found most of the interaction co-efficient
negative sign.
Homotheticity condition were satisfied using effectively with
cross equation symmetry and homogeneity condition. The nega-
tivity condition was also satisfied as the own price allen partial
elasticities were negative. Furthermore, Monotonicity condition
were tested and found satisfied result. The findings of monotonicity
condition result were presented in Table 4.
From the Table 5, tabulated value indicated that there was a
substitute relationship between machinery and seed, machinery
and irrigation, machinery and human labour, machinery and fer-
tilizer, seed and irrigation, seed and fertilizer, irrigation and fertil-
izer, human labour and fertilizer but there was a complementary
relationship between seed and human labour, irrigation and hu-
man labour. Complementary means if the price of irrigation
increased than the demand of human labour decrease, in the same
way if the price of seed the demand of human labour decrease.
Substitute relationship means if the machinery price increases the
demand of irrigation increase. In the same way if the price of fer-
tilizer increases the demand of human labour increase. In case of
Diesel powered Irrigation System
95 435
30 115
125 550
137 626
1.096
35 028
12 076
J. Rana, M. Kamruzzaman, M. Hosain Oliver et al. Renewable Energy 167 (2021) 433e439

Fig. 1. Carbon dioxide emission from diesel powered irrigation pump in Bangladesh in different year.

Table 3
Translog cost function using seemingly unrelated regression estimate.

Variable Estimate Standard Error Variable Estimate Standard Error

Price of Machinery .161*** .024 Price of Machinery  Price of Human Labour -.023* .009
Price of Seed .092*** .012 Price of Machinery  Price of Fertilizer -.013*** .003
Price of Irrigation .200*** .006 Price of Machinery  Output -.009* .005
Price of Human Labour .166*** .014 Price of Seed  Price of Irrigation -.015*** .002
Price of Fertilizer .193*** .004 Price of Seed  Price of Human Labour -.008 .006
Output -.028* .010 Price of Seed  Price of Fertilizer -.005* .002
½ Price of Machinery  Price of Machinery .063*** .010 Price of Seed  Output -.001 .002
½ Price of Seed  Price of Seed .035*** .005 Price of Irrigation  Price of Human Labour -.085*** .002
½ Price of Irrigation  Price of Irrigation .177*** .001 Price of Irrigation  fertilizer cost -.036*** .001
½ Price of Human Labour  Price of Human Labour .216*** .009 Price of Irrigation  output -.001 .001
½ Price of Fertilizer  Price of Fertilizer .109*** .001 Price of Human Labour  Price of Fertilizer -.036*** .002
½ Output  Output .005*** .002 Price of Human Labour  Output .002 .003
Price of Machinery  Price of Seed -.012* .007 Price of Fertilizer  Output -.004*** .001
Price of Machinery  Price of Irrigation -.016** .004 Constant 1.79 .023

(*, ** & *** indicate 10%, 5% and 1% level of significance respectively).

Table 4
Checking the monotonicity conditions.

Variable Observation Mean Standard deviation Minimum Maximum

Machinery 120 0.126 0.007 0.108 0.141

Seed 120 0.040 0.004 0.030 0.047
Irrigation 120 0.243 0.037 0.161 0.313
Human labour 120 0.336 0.019 0.293 0.382
Fertilizer 120 0.150 0.022 0.058 0.189
Others 120 0.183 0.008 0.163 0.207

Table 5 complementary relationship, relatively strong complementary

Allen Partial Own Price Elasticities and Allen Partial Elasticities of substitution at relationship exists between irrigation and human labour (0.041)
mean level.
than Seed and human labour (0.005). In case of substitute rela-
Machinery Seed Irrigation Human labour fertilizer tionship, relatively strong substittory relationship exists between
Machinery e e e e seeds and machinery (0.220) than other substittory relationship
Seed 0.220 e e e that, machinery and irrigation (0.006), machinery and human la-
Irrigation 0.006 0.005 e e e bour (0.046), machinery and fertilizer (0.108), seed and irrigation
Human labour 0.046 0.005 0.014 e e
(0.005), seed and fertilizer (0.084), irrigation and fertilizer (0.053),
Fertilizer 0.108 0.084 0.053 0.097 e
human labour and fertilizer (0.097). In modern agriculture

437
J. Rana, M. Kamruzzaman, M. Hosain Oliver et al.
production process seed, fertilizer, irrigation is important for any
modern agricultural technology. In Boro seasons, irrigation is
important because Boro rice crop is irrigation based and farmers
would save crops from drought by applying irrigation. From the
study, it was found that irrigation had substitute relationship with
machinery, seed and fertilizer. The substitute relationship between
irrigation and fertilizer implies that if the price of fertilizer increase,
fertilizer demand would fall, where the demand of irrigation would
increase. As now farmers also would use irrigation after applying
fertilizer for efficient use of fertilizer. This situation describes that
farmers of that region were efficient. Most of the farmers were
involved in different training program on fertilizer use. This result
can be related to findings of [32]. They also found substitute rela-
tionship between irrigation and fertilizer. Similarly, if the price of
irrigation increase, then the demand of machinery would increase,
and demand of irrigation would reduce. As now, farmer would like
to use the quality of tillage in the field. The positive relationship
between irrigation and seed indicate that if the price of irrigation
increase then the demand of irrigation use reduced the use of seeds
increase. Complementary relationship between irrigation and hu-
man labour indicate that if the price of irrigation increase then the
demand of irrigation would reduce thus the need of labour for
irrigation purpose also reduced. As now farmer would reduce the
use of irrigation, thus the need of labour will reduced.
The selected inputs had significant influence on the cost of
modem rice production. The price elasticities for the five rice pro-
ducing factor demands elasticity for Boro rice are presented in
Table 6. Own price elasticities of all factors have the correct signs in
the Boro rice production. Own price elasticities of machinery po-
wer, seed, fertilizer, irrigation, and labour are negative and inelastic
as expected in prior economic theory and irrigation is highly in-
elastic compared to other input. Their elasticities show that for 1%
rise in own prices, the demand for machinery power, seed, fertil-
izer, irrigation, and human labour would fall by 0.139, 0.045, 0.0001,
0.003, and 0.076%, respectively. The high price irresponsiveness on
the demand for irrigation may have serious implication for the
profitability. It was clearly indicated that farmer needed to use the
irrigation at sufficient amount to keep the production level high
irrespective of price. So if the cost of irrigation rise, then the cost of
production increase which ultimately affect in farm profitability.
Thus it can ultimately lead unwillingness of farmer in rice pro-
duction for its poor profitability. The cross price of elasticities of
demand had the same sign and explains the same as allen price
elasticity of substitute but magnitude was different.
4. Conclusion and discussion
Ensuring access to irrigation in a reliable and affordable manner
to be most important policy in the developing country. In doing so,
Bangladesh introduced solar powered irrigation system in some
specific district. The financial analysis showed that solar powered
irrigation had higher gross margin and net margin than diesel
powered system user. It also showed that BCR value is higher for
Solar powered irrigation system user than diesel powered irriga-
tion system user. The effect of diesel powered irrigation system on
Table 6
Own price elasticity and cross price elasticity of derived demand at mean level.
Machinery Seed Irrigation Human labour fertilizer
Machinery 0.139 e e e e
Seed 0.008 0.045 e e e
Irrigation 0.001 0.001 0.0001 e e
Human labour 0.015 0.002 0.004 0.03 e
Fertilizer 0.016 0.012 0.007 0.0146 0.076
438
Renewable Energy 167 (2021) 433e439
environment is very much prominent as it added average 3.65
million tons CO2 to the environment during 2018-19. Replacing
these diesels powered irrigation system with solar powered irri-
gation system, Bangladesh can mitigate the CO2 emission from
agriculture source. This paper was also conducted the analysis to
understand the factor demand elasticity of solar power irrigation
system. From factor demand elasticity and elasticity of substitution
analysis, it was found that machinery power, seed, fertilizer, irri-
gation and human labour have expected negative signs. Irrigation
was found highly inelastic that is 0.0001. Complementary rela-
tionship was found between seed and human labour, irrigation and
human labour. Substitute relationship was found between ma-
chinery and seed, machinery and irrigation, machinery and human
labour, machinery and fertilizer, seed and irrigation, seed and fer-
tilizer, irrigation and fertilizer, human labour and fertilizer. The
relationship between input was found to be inelastic which means
that increase of price of any input did not have significant impact on
the other input demand. But highly inelastic nature of irrigation
highlight that farmers used sufficient amount of irrigation water
irresponsiveness of price of irrigation water. The result also
revealed that farmers of the study area become efficient in using
fertilizer after introducing the project of the study area.
Solar powered irrigation system in Bangladesh are producing
positive result in agriculture. Specially, financial outcome in Boro
rice production will encourage farmer to adopt this system. On the
other hand, farmers using solar powered irrigation system using
less fertilizer comparatively than diesel powered irrigation system
user. Also the inelasticity behavior of irrigation variable, clearly
indicate that farmers need to use sufficient amount of irrigation
water in Boro rice production irrespective of the irrigation cost. Low
cost solar powered irrigation system can promote farmer to culti-
vate Boro rice regularly. Government of Bangladesh should
continuously invest in solar powered irrigation system for its long
run and environment friendly economic gain. It is important for the
government to provide highly subsidy to the solar powered irri-
gation system as well as to encourage farmer to adopt this system.
Further study should be taken on solar powered irrigation sys-
tem to understand the commercial feasibility of solar powered
irrigation system. As well as to understand the farmers’ preference
level about the solar powered irrigation system.
CRediT authorship contribution statement
Jaber Rana: Writing - original draft, Investigation, Data collec-
tion, Formal analysis, Software. M. Kamruzzaman: Conceptuali-
zation, Methodology, Funding acquisition, Resources, Supervision,
Writing - review & editing. Moinul Hosain Oliver: Conceptuali-
zation, Resources, critically revision, Writing - review & editing.
Kaynath Akhi: Visualization, Methodology, Writing - review &
editing.
Declaration of competing interest
The authors declare that they have no known competing
financial interests or personal relationships that could have
appeared to influence the work reported in this paper.
Acknowledgement
The authors like to acknowledge the department of extension
for their continuous support during study.
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