Economic impacts of fall armyworm and its management strategies: evidence from southern Ethiopia
This paper explores the economic implications of fall armyworm (FAW) and its management strategies by exploiting exogenous variation in FAW exposure amongst households in southern Ethiopia. We find that FAW exposure affects maize yield and sales negatively, but not consumption. Furthermore, we find evidence of crowding-in and intensification of insecticide use in response to FAW exposure. We also find suggestive evidence that existing extension service arrangements lack the capacity to deal with emerging threats such as FAW.