Risk And Ambiguity Preferences And The Adoption Of New Agricultural Technologies
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Risk and Ambiguity Preferences and the Adoption of New Agricultural Technologies by Ward, Patrick S.,Singh, Vartika Pdf
Advances in agricultural development have largely been a direct result of increased usage of new technologies. Among other important factors, farmers perceptions of risks associated with the new technology as well as their ability or willingness to take risks greatly influences their adoption decisions. In this paper we conduct a series of field experiments in rural India in order to measure preferences related to risk, potential loss, and ambiguity. Disaggregating by gender, we find that on average women are significantly more risk averse and loss averse than men, though the higher average risk aversion arises due to a greater share of women who are extremely risk averse.
Managing Risk in Agriculture by Ashok K. Mishra,Subal C. Kumbhakar,Gudbrand Lien Pdf
The book addresses and documents farmers' risks in developing and emerging economies. It draws lessons from experimental economics on measuring risk preferences, attitudes, gender differences in managing risks, and risk management strategies in countries across Africa and Asia. It argues policy makers, especially in emerging economies, need a better understanding of farmers' attitudes toward risk and choices of risk management strategies when designing policies to support production agriculture. The book includes chapters on three themes: understanding risk attitudes and preferences; using experimental economics to measure risk, preferences, and risk management strategies; and understanding climate change, risk, and risk management. The book critically examines the currently held beliefs about risk preference, attitudes, and empirical estimation of risk management strategies, emphasizing developing and emerging economies (DEE). This book is ideal for students and researchers in universities and research organizations who conduct applied research on public policy, community development, and rural development, and will also be of interest to policy-makers in those fields.
The role of learning in technology adoption: Evidence on hybrid rice adoption in Bihar, India by Gars, Jared,Ward, Patrick S. Pdf
Much empirical research has shown that individuals’ decisions to adopt a new technology are the result of learning–both through personal experimentation through observing the experimentation of others. Yet even casual observation would suggest significant heterogeneity of learning processes, manifesting itself in widely varying patterns of adoption over space and time. This paper explores this heterogeneity in the context of early adoption of hybrid rice in rural India. Using specially designed experiments conducted as part of a primary survey in the field, we identify which of four broad learning heuristics most accurately reflects individuals’ information processing strategies. Linking these learning heuristics with observed use of rice hybrids, we demonstrate that pure Bayesian learning is well suited for the tinkering and marginal adjustments that are required to learn about a technology like hybrid rice, but it is also more cognitively taxing than other learning styles requiring a longer memory and more complex updating processes. Consequently, only about 25 percent of the farmers in our sample can be characterized as pure Bayesian learners. Present-biased learning and relying on first impressions will likely hinder adoption of a technology like hybrid rice, even after controlling for access to credit and a rudimentary proxy for intelligence.
Agricultural Adaptation to Climate Change in Africa by Cyndi Spindell Berck,Peter Berck,Salvatore Di Falco Pdf
A changing climate is likely to have a drastic impact on crop yields in Africa. The purpose of this book is to document the effects of climate change on agriculture in Africa and to discuss strategies for adaptation to hotter weather and less predictable rainfall. These strategies include promoting opportunities for farmers to adopt technologies that produce optimal results in terms of crop yield and income under local agro-ecological and socioeconomic conditions. The focus is on sub-Saharan Africa, an area that is already affected by changing patterns of heat and rainfall. Because of the high prevalence of subsistence farming, food insecurity, and extreme poverty in this region, there is a great need for practical adaptation strategies. The book includes empirical research in Ethiopia, Kenya, South Africa, Tanzania, and other Sub-Saharan countries, and the conclusion summarizes policy-relevant findings from the chapters. It is aimed at advanced students, researchers, extension and development practitioners, and officials of government agencies, NGOs, and funding agencies. It also will provide supplementary reading for courses in environment and development and in agricultural economics.
Intellectual property rights, technology diffusion, and agricultural development by Spielman, David J.,Ma, Xingliang Pdf
The role of intellectual property rights (IPRs) has been extensively debated in the literature on technology transfers and agricultural production in developing countries. However, few studies offer cross-country evidence on how IPRs affect yield growth, for example, by incentivizing private-sector investment in cultivar improvement. We address this knowledge gap by testing technology diffusion patterns for six major crops using a unique dataset for the period 19612010 and an ArellanoBond linear dynamic panel-data estimation approach. Findings indicate that both biological and legal forms of IPRs tend to promote yield gap convergence between developed and developing countries, although effects vary between crops.
Do grassroots interventions relax behavioral constraints to the adoption of nutrition-sensitive food production systems? by Alvi, Muzna,Ward, Patrick S.,Makhija, Simrin,Spielman, David J. Pdf
In many developing countries, agricultural policies and programs are often designed in a way to promote productivity growth with modern inputs and technologies, and with limited reference to the nutrition gains that can be made through production diversification. We test whether grassroots programs can relax behavioral constraints inhibiting the adoption of diversified nutrition-sensitive production systems. We use a series of lab-in-field experiments and survey instruments in Odisha, India to elicit male and female farmers’ preferences for risk, aversion to loss, empowerment and aspirations for one’s self and children. We find that respondents in villages where grassroots interventions were promoted showed significantly lower levels of risk aversion, higher levels of loss aversion and higher aspirations for themselves and their children, along with improvements in production and consumption diversity. Insights into the prevalence of behavioral constraints and interventions that relax such constraints fills an important knowledge gap in how to design programs that promote more nutrition-sensitive food production systems.
Agriculture Innovation Systems in Asia by Lakhwinder Singh,Anita Gill Pdf
This book looks at agricultural systems and rural economies in Asia through the prism of alternative innovation systems, alternative public policy and institutional changes. The massive shifts within the agricultural economy in Asia, geared towards increasing production, has had a direct effect on the livelihood of a large mass of people in rural societies, causing financial and social distress. This book explores a wide range of solutions, such as the role of education, improving technical skills and human capital, along with interactive learning in R&D, harnessing ICTs and institutional innovations, to see how these problems can be alleviated. The volume looks at how these methods can help formulate alternative ways to build sustainable and inclusive agricultural societies, ensure food security, sustainable growth and agricultural productivity. This book, rich in theoretical and empirical matter, will be useful for academics and researchers interested in agricultural innovation, development studies and agricultural economics. It will also be of interest to policymakers and thinktanks working towards inclusive social development and sustainability in Asia and the Indian subcontinent.
Understanding compliance in programs promoting conservation agriculture by Ward, Patrick S.,Bell, Andrew R.,Droppelmann, Klaus,Benton, Tim Pdf
Land degradation and soil erosion have emerged as serious challenges to smallholder farmers throughout southern Africa. To combat these challenges, conservation agriculture (CA) is widely promoted as a sustainable package of agricultural practices. Despite the many potential benefits of CA, however, adoption remains low. Yet relatively little is known about the decision-making process in choosing to adopt CA. This article attempts to fill this important knowledge gap by studying CA adoption in southern Malawi. Unlike what is implicitly assumed when these packages of practices are introduced, farmers view adoption as a series of independent decisions rather than a single decision. Yet the adoption decisions are not wholly independent. We find strong evidence of interrelated decisions, particularly among mulching crop residues and practicing zero tillage, suggesting that mulching residues and intercropping or rotating with legumes introduces a multiplier effect on the adoption of zero tillage.
The Role of Ecosystem Services in Sustainable Food Systems by Leonard Rusinamhodzi Pdf
The Role of Ecosystem Services in Sustainable Food Systems reveals, in simple terms, the operational definition, concepts and applications of ecosystem services with a focus on sustainable food systems. The book presents case studies on both geographical and production system-wide considerations. Initial chapters discuss concepts, methodologies and the tools needed to understand ecosystem services in the broader food system. Middle and later chapters present different perspectives from case studies of ecosystem services derived from some of the key sustainable food production systems used by farmers, along with discussions on the challenges of deriving full benefits and how they can be overcome. Researchers, students, scientists, development practitioners and policymakers will welcome this reference as they continue their work related to sustainable food systems. Introduces the concept of ecosystem services in simple terms for a wide readership Provides an explanation of sustainable food systems Contains the tools to identify and quantify ecosystem services in sustainable food systems Identifies ecosystem services in specific systems utilized for sustainable food systems Categorizes the challenges of deriving maximum benefits of ecosystem services
Employment risk and job-seeker performance by Godlonton, Susan Pdf
This paper examines the relationship between employment risk and job-seeker performance. To induce exogenous variation in employment risk, the outside options for job seekers undergoing a real recruitment process were randomized by assigning them a 0, 1, 5, 50, 75, or 100 percent chance of real alternative employment of the same duration and wage as the jobs for which they were applying. The findings show that job-seeker performance is highest and effort is lowest among those assigned the lowest employment risk (a guaranteed alternative job), and performance is lowest and effort highest among those facing the highest employment risk (those without any job guarantee). Moreover, a nonlinear relationship exists between employment risk and performance.
Womens individual and joint property ownership by Doss, Cheryl,Kim, Sung Mi,Njuki, Jemimah,Hillenbrand, Emily,Miruka, Maureen Pdf
Increasingly, womens property rights are seen as important for both equity and efficiency reasons. While there has been debate in the literature about women are better off with individual rights in contrast to rights jointly with their husband, little empirical work has analyzed this question. In this paper, the relationship of womens individual and joint property ownership and the level of womens input into household decisionmaking is explored with data from India, Mali, Malawi, and Tanzania. In the three African countries, women with individual landownership have greater input into household decisionmaking than women whose landownership is joint; both have more input than women who are not landowners. The relationship with other household decisions is more mixed, as is the relationship between housing and input into household decisionmaking. No similar relationship is found in Orissa, India.
Can smallholder fruit and vegetable production systems improve household food security and nutritional status of women? by Kabunga, Nassul,Ghosh, Shibani,Griffiths, Jeffrey K. Pdf
This paper aims to empirically infer potential causal linkages between fruit and vegetable (F&V) production, individual F&V intake, household food security, and anemia levels for individual women caregivers of childbearing age. Using a unique and rich dataset recently collected from rural smallholder Ugandan households, we show that the use of a qualitative tool to measure household food insecurity is robust and applicable in other contexts. We also show, using robust econometric methods, that women living in F&V-producer households have a significantly higher intake of F&Vs than those living in nonproducer households. Furthermore, F&V-producer households are potentially more food secure, and women caregivers in producer households have significantly higher levels of hemoglobin, rendering the prevalence rates of anemia lower among F&V-producer households. We argue that these effects, modest as they are, could be further improved if there were deliberate efforts to promote the intensification of smallholder F&V production.
How does climate change alter agricultural strategies to support food security? by Thornton, Philip K.,Lipper, Leslie Pdf
The purpose of the paper is to identify how climate change affects how we should approach the process of transforming agricultural systems (including crops, livestock, fisheries and forestry) to support global food security and poverty reduction in a sustainable way. We also identify implications for FAO (Food and Agriculture Organization of the United Nations) and CGIAR priorities.
Migration, local off-farm employment, and agricultural production efficiency by Yang, Jin,Wang, Hui,Jin, Songqing,Chen, Kevin,Riedinger, Jeffrey,Chao, Peng Pdf
This paper studies the effect of local off-farm employment and migration on rural households technical efficiency of crop production using a five-year panel dataset from more than 2,000 households in five Chinese provinces. While there is not much debate about the positive contribution of migration and local off-farm employment to Chinas economy, there is an increasing concern about the potential negative effects of moving labor away from agriculture on Chinas future food security. This is a critical issue as maintaining self-sufficiency in grain production will be critical for China to feed its huge population in the future. Several papers have studied the impact of migration on production and yield with mixed results. But the impact of migration on technical efficiency is rarely studied. Methodologically, we incorporate the correlated random-effects approach into the standard stochastic production frontier model to control for unobservable that are correlated with migration and off-farm employment decisions and technical efficiency. The most consistent result that emerged from our econometric analysis is that neither migration nor local off-farm employment has a negative effect on the technical efficiency of grain production, which does not support the widespread notion that vast-scale labor migration could negatively affect Chinas future food security.
Gender dimensions on farmers’ preferences for direct-seeded rice with drum seeder in India by Khan, Md. Tajuddin,Kishore, Avinash,Joshi, Pramod Kumar Pdf
This study measures the willingness of male and female farmers to pay for climate-smart technology in rice. Rice is the most important crop in India in terms ofarea, production,and consumption. It is also the biggest source of greenhouse gas emissions among all crops. Direct-seeded rice (DSR)with drum seeder, a climate-smart technology, requires less labor and water and is more climate friendly than transplanted rice; yet,its adoption is slow in India. Theauthors of this studycarried out a discrete choice experiment with 666 farmers from the Palghar and Thane districts of Maharashtra to measure their willingness to pay for drum seeders—a key piece of equipment for adopting DSR. Both male and female farmers were surveyed to capture the heterogeneity in their valuation of the key attributes of drumseeders. Although both male and female farmers prefer cheaper drum seeders, the marginal valuation of different attributes of the drum seeder varies by the farmers’ gender. The authors also used the Women Empowerment in Agriculture Index (WEAI), developed by the International Food Policy Research Institute (IFPRI), to collect self-reported data on the role and say of women in agriculture. The respective gender roles in the family and on the farm seem to explain some of this difference. Men have a greater say over how the family spends the cash. Accordingly, men tend to have a higher willingness to pay for attributes that increase income (increase in yield) or reduce cash costs (reduction in the seedrate). Women contribute a large share of the labor for transplanting rice, much of whichis unpaid work on family farms. Not surprisingly, therefore, women seem to value labor saving significantly more than their male counterparts. Further, theWEAI data show that although men in the family have more say, women do have an influence on decisions regarding crop production and the adoption of new technologies,to an extent. Therefore, to enhance the adoption of drum seeders, the product designers and extension workers should also target women
