Abstract
This study examines the relationship between market experience and the adoption of risky but profitable agricultural technologies and explores the role of demand-side barriers. Using survey and incentivized experimental data, we find that market experience is significantly associated with increased adoption of improved agricultural technologies. Furthermore, we find that market experience is linked to reduced risk aversion and a stronger internal locus of control, which, in turn, are associated with higher technology adoption. Our findings imply that policies aimed at increasing farmers' investment in improved agricultural technologies benefit not only from providing access to these technologies but also from addressing psychological barriers.
| Original language | English |
|---|---|
| Article number | jbae033 |
| Number of pages | 36 |
| Journal | European Review of Agricultural Economics |
| DOIs | |
| Publication status | E-pub ahead of print - 1 Dec 2024 |
JEL classifications
- c93 - Field Experiments
- d91 - "Intertemporal Consumer Choice; Life Cycle Models and Saving"
- q10 - Agriculture: General
- q18 - "Agricultural Policy; Food Policy"
Keywords
- agricultural technology adoption
- locus of control
- market experience
- risk preference
- Ethiopia
- SMALLHOLDER FARMERS
- DISCRETE OUTCOMES
- COTTON FARMERS
- PESTICIDE USE
- PREFERENCES
- IMPACT
- FERTILIZER
- DECISIONS
- BEHAVIOR
- SEARCH