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Estimation of Technical Efficiency of Small Scale Biogas Plants in Bangladesh by Using Data Envelopment Analysis

Humayun Kabir
Assistant Professor
Assistant Professor, Dept. of Agricultural Economics, Bangladesh .Agricultural University, Mymensingh-2202

Abstract/ Executive Summary:

The main objective of the study is to estimate technical efficiency of biogas plants in Bangladesh by using data envelopment analysis (DEA). The study employed farm level cross section data from five major biogas producing areas of Bangladesh. The non-parametric DEA approach applied to estimate the technical efficiency of biogas plants in the study areas. This paper developed a theoretical framework of DEA approach. The average technical efficiency of biogas plants in Bangladesh is 86 percent. This indicates a good potential for increasing biogas production by 14 percent with the present technology and level of inputs. Only five farms achieved efficient score 1.00 and remaining fifty five farms having chance to promote their efficiency score with the help of peer groups through DEA approach. Peers groups of perfect efficient farms could be playing a vital role on inefficient farms to direct their inputs for efficiently producing biogas

Keywords: Estimation, Technical efficiency,Biogas plants

Location: Noakhali, Mymensingh, Khulna, Manikganj and Rangpur.

Start Date: 01-04-2000

End Date: 07-05-2000

Program Area: Socio-economic and Policy

Commodity: Bio fertilizer

Objectives:

To estimate technical efficiencies of biogas farms of different regions in Bangladesh though DEA approach

Methodology:

Study area: The purpose would be better served where there were various types of biogas plants are available. Five districts selected from four divisions for this study namely: Noakhali, Mymensingh, Khulna, Manikganj and Rangpur. A number of villages had been selected from each district where biogas plants were available. All the biogas service provider agencies have been working in the study areas and also regionally, chosen these areas for representation of the country. These five districts selected due to having good representation of biogas plants across Bangladesh. There have some regional variation on the basis of education, farming system, adoption of technology, cultural and economic status, etc. Sample technique Considering the time and resource constraints, sixty samples were taken for the study. Purposive random sampling technique was chosen for collection of data because it was difficult to collect data from biogas users. Twelve sampled farmers have been selected from each district. Thus, the study was based a set of field level primary data collected from the sampled farmers by direct interview with a set of interview schedule designed for the research during l April to 7 May, 2009. Secondary data were collected from internet, different organization and even some expert persons who are evolved in biogas activities.

Source of Information: Bangladesh J. Agric. Econs. XXXI, 1(2008) 69-80

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

Comparatively, Khulna districts performed comparatively better than other selected areas. The socio-economic behavior of biogas users in Khulna was differed than others districts in terms of education, farm size, age of the family head and education, However, the differences of technical efficiencies of all districts were not so large due to using of manure and labors were not quite different. It is quite good result response to all farms but having a question on total volume of biogas production. The farmers are given the effort to produce biogas by 86 percent efficient level but the total volume of biogas production was not too much due to adoption of low technology in study areas. Thus, this DEA technique follows the Schultz (1964) model on `poor but efficient' in the developing countries. GOs, NGOs, private entrepreneurship and international funding organization have to take initiative to implement high technology based biogas plants that could be mitigated the existing gas as well as electricity problems.

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