This study examined soybean insecticide demand in Java and assessed the impact of integrated pest management (IPM) on insecticide use using aggregate regional data. The report includes an overview of the IPM program and technology transfer including a detailed outline of Farmer Field Schools. Data was collected from various sources and analysed using recursive and simultaneous equation models, the construction of which is detailed in the report. Results from each model are reported and compared, consistently attributing significant reductions in soybean insecticide use in Jogjakarta and Central Java to IPM technology. Results are discussed in terms of how well the variables explain variation in insecticide use and outline the relationship between insecticide use and other variables such as relative pesticide price, pest infestation and IPM technology. The greater accuracy of the simultaneous model was highlighted due to its ability to capture the reversible relationship between pest infestation and insecticide use. In concluding, the authors attribute the reduction in soybean insecticide use to the elimination of the insecticide subsidy which resulted in increased insecticide prices and dissemination of IPM technology.

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