Technology Adoption under Production Uncertainty: Theory and Application to Irrigation Technology

2006/07/20 by Phoebe Koundouri, Céline Nauges, Vangelis Tzouvelekas · 9 citations
Agricultural and Biological Sciences · Economics, Econometrics and Finance · #Agricultural Innovations and Practices #Agricultural risk and resilience #Economic Growth and Productivity

paper · doi:10.1111/j.1467-8276.2006.00886.x

Abstract

We propose a theoretical framework to analyze the conditions under which a farmer facing production uncertainty (due to a possible water shortage) and incomplete information will adopt a more efficient irrigation technology. A reduced form of this model is empirically estimated using a sample of 265 farms located in Crete, Greece. The empirical results suggest that farmers choose to adopt the new technology in order to hedge against production risk. In addition, we show that the farmer's human capital also plays a significant role in the decision to adopt modern, more efficient irrigation equipment.

Citations

• Specification Tests in Econometrics

Cited by

• The effect of heat stress on risk and efficiency in dairy farming
• Water conservation and saving technologies for irrigation. A structured literature review of econometric studies on the determinants of adoption
• Exploring the Adoption of High Tunnel System among Specialty Crop Growers: Perceptions, Use Experiences, Willingness to Pay, and Influencing Factors
• Exploring the Adoption of Precision Agriculture for Irrigation in the Context of Agriculture 4.0: The Key Role of Internet of Things. [europepmc]
• Agricultural Water Use Efficiency and Rebound Effect: A Study for China. [europepmc]
• Analysis on outsourcing service behavior of rice pest and disease control based on Heckman selection model-A case study of ten counties in Fujian Province. [europepmc]
• Evaluating Brazilian Agriculturalists' IoT Smart Agriculture Adoption Barriers: Understanding Stakeholder Salience Prior to Launching an Innovation. [europepmc]
• The role of social interaction in farmers' water-saving irrigation technology adoption: testing farmers' interaction mechanisms. [europepmc]
• Can Digital Human Capital Promote Farmers' Willingness to Engage in Green Production? Exploring the Role of Online Learning and Social Networks. [europepmc]

Related

• Irrigation Advisory Services: Farmers preferences and willingness to pay for innovation
• Information Transmission in Irrigation Technology Adoption and Diffusion: Social Learning, Extension Services, and Spatial Effects
• Investigating Technological Solutions for Addressing Water Scarcity in Agricultural Production
• Adoption of agricultural technology in the developing world: A meta-analysis of the empirical literature
• The Adoption and Impact of Soil and Water Conservation Technology: An Endogenous Switching Regression Application