IDEAS home Printed from https://ideas.repec.org/a/eee/ecolec/v209y2023ics0921800923000897.html
   My bibliography  Save this article

Will adoption occur if a practice is win-win for profit and the environment? An application to a rancher's grazing practice choices

Author

Listed:
  • Che, Yuyuan
  • Feng, Hongli
  • Hennessy, David A.

Abstract

Rotational grazing has the potential to provide both economic and environmental benefits; however, the set of ranchers that adopts is much smaller than the set that regards rotational grazing as a win-win practice. To investigate this adoption gap and learn about adoption decisions and motivations, we survey 874 ranchers on the U.S. Great Plains. We find that a large proportion of surveyed ranchers who view rotational grazing as win-win for both profit and the environment do not adopt the practice. We also find that win-win non-adopters are a constrained group for most potential challenges to rotational grazing adoption, especially regarding high initial costs, water resource limitations, and ranch conditions. Some of these impediments could be relieved by capital to which, however, win-win non-adopters have limited access. Win-win non-adopters are more likely to adopt rotational grazing than others when a one-time subsidy is offered, suggesting that win-win non-adopters hold promise as a target group for subsidies to reduce the cost of adoption. Our analysis shows the importance of understanding the specifics of an adoption gap when making and implementing policies.

Suggested Citation

  • Che, Yuyuan & Feng, Hongli & Hennessy, David A., 2023. "Will adoption occur if a practice is win-win for profit and the environment? An application to a rancher's grazing practice choices," Ecological Economics, Elsevier, vol. 209(C).
    • Handle: RePEc:eee:ecolec:v:209:y:2023:i:c:s0921800923000897
    DOI: 10.1016/j.ecolecon.2023.107826
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0921800923000897
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ecolecon.2023.107826?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kenneth Gillingham & Karen Palmer, 2014. "Bridging the Energy Efficiency Gap: Policy Insights from Economic Theory and Empirical Evidence," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 8(1), pages 18-38, January.
    2. Kristen Nelson & Rachel Brummel & Nicholas Jordan & Steven Manson, 2014. "Social networks in complex human and natural systems: the case of rotational grazing, weak ties, and eastern US dairy landscapes," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 31(2), pages 245-259, June.
    3. Todd D. Gerarden & Richard G. Newell & Robert N. Stavins, 2017. "Assessing the Energy-Efficiency Gap," Journal of Economic Literature, American Economic Association, vol. 55(4), pages 1486-1525, December.
    4. Angelo Antoci & Simone Borghesi & Giulio Galdi & Sergio Vergalli, 2022. "Adoption Gaps of Environmental Adaptation Technologies with Public Effects," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 83(2), pages 313-339, October.
    5. Seon-Ae Kim & Jeffrey M. Gillespie & Krishna P. Paudel, 2008. "Rotational grazing adoption in cattle production under a cost-share agreement: does uncertainty have a role in conservation technology adoption?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(3), pages 235-252, September.
    6. Roger Claassen & Eric N. Duquette & David J. Smith, 2018. "Additionality in U.S. Agricultural Conservation Programs," Land Economics, University of Wisconsin Press, vol. 94(1), pages 19-35.
    7. Franklin Simtowe & Solomon Asfaw & Tsedeke Abate, 2016. "Determinants of agricultural technology adoption under partial population awareness: the case of pigeonpea in Malawi," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 4(1), pages 1-21, December.
    8. Gillespie, Jeffrey M. & Wyatt, Wayne & Venuto, Brad & Blouin, David & Boucher, Robert W., 2008. "The Roles of Labor and Profitability in Choosing a Grazing Strategy for Beef Production in the U.S. Gulf Coast Region," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 40(1), pages 1-13, April.
    9. Backlund, Sandra & Thollander, Patrik & Palm, Jenny & Ottosson, Mikael, 2012. "Extending the energy efficiency gap," Energy Policy, Elsevier, vol. 51(C), pages 392-396.
    10. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    11. Awudu Abdulai & Wallace Huffman, 2014. "The Adoption and Impact of Soil and Water Conservation Technology: An Endogenous Switching Regression Application," Land Economics, University of Wisconsin Press, vol. 90(1), pages 26-43.
    12. Wang, Tong & Richard Teague, W. & Park, Seong C. & Bevers, Stan, 2018. "Evaluating long-term economic and ecological consequences of continuous and multi-paddock grazing - a modeling approach," Agricultural Systems, Elsevier, vol. 165(C), pages 197-207.
    13. Daxini, Amar & O'Donoghue, Cathal & Ryan, Mary & Barnes, Andrew & Buckley, Cathal & Daly, Karen, 2018. "Which factors influence farmers’ intentions to adopt nutrient management planning?," 92nd Annual Conference, April 16-18, 2018, Warwick University, Coventry, UK 273498, Agricultural Economics Society.
    14. Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680, Decembrie.
    15. Hunt Allcott & Michael Greenstone, 2012. "Is There an Energy Efficiency Gap?," Journal of Economic Perspectives, American Economic Association, vol. 26(1), pages 3-28, Winter.
    16. Marshall, Graham R., 2009. "Polycentricity, reciprocity, and farmer adoption of conservation practices under community-based governance," Ecological Economics, Elsevier, vol. 68(5), pages 1507-1520, March.
    17. Aliou Diagne & Matty Demont, 2007. "Taking a new look at empirical models of adoption: average treatment effect estimation of adoption rates and their determinants," Agricultural Economics, International Association of Agricultural Economists, vol. 37(2‐3), pages 201-210, September.
    18. Li, Dongqing & Hou, Lingling & Zuo, Alec, 2021. "Informal institutions and grassland protection: Empirical evidence from pastoral regions in China," Ecological Economics, Elsevier, vol. 188(C).
    19. Elizabeth Canales & Jason S. Bergtold & Jeffery R. Williams, 2020. "Conservation practice complementarity and timing of on‐farm adoption," Agricultural Economics, International Association of Agricultural Economists, vol. 51(5), pages 777-792, September.
    20. Teague, W.R. & Kreuter, U.P. & Grant, W.E. & Diaz-Solis, H. & Kothmann, M.M., 2009. "Economic implications of maintaining rangeland ecosystem health in a semi-arid savanna," Ecological Economics, Elsevier, vol. 68(5), pages 1417-1429, March.
    21. Konc, Théo & Savin, Ivan & van den Bergh, Jeroen C.J.M., 2021. "The social multiplier of environmental policy: Application to carbon taxation," Journal of Environmental Economics and Management, Elsevier, vol. 105(C).
    22. Tong, Benjamin H. & Boyer, Tracy A. & Sanders, Larry D., 2017. "Externalities, Profit, And Land Stewardship: Conflicting Motives For Soil And Water Conservation Adoption Among Absentee Landowners And On-Farm Producers," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 49(4), pages 491-513, November.
    23. Valeria Piñeiro & Joaquín Arias & Jochen Dürr & Pablo Elverdin & Ana María Ibáñez & Alison Kinengyere & Cristian Morales Opazo & Nkechi Owoo & Jessica R. Page & Steven D. Prager & Maximo Torero, 2020. "A scoping review on incentives for adoption of sustainable agricultural practices and their outcomes," Nature Sustainability, Nature, vol. 3(10), pages 809-820, October.
    24. Meredith J. Soule & Abebayehu Tegene & Keith D. Wiebe, 2000. "Land Tenure and the Adoption of Conservation Practices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(4), pages 993-1005.
    25. Windh, Jessica L. & Ritten, John P. & Derner, Justin D. & Paisley, Steven I. & Lee, Brian P., 2019. "Economic cost analysis of continuous-season-long versus rotational grazing systems," Western Economics Forum, Western Agricultural Economics Association, vol. 17(1), April.
    26. Ranjan, Pranay & Wardropper, Chloe B. & Eanes, Francis R. & Reddy, Sheila M.W. & Harden, Seth C. & Masuda, Yuta J. & Prokopy, Linda S., 2019. "Understanding barriers and opportunities for adoption of conservation practices on rented farmland in the US," Land Use Policy, Elsevier, vol. 80(C), pages 214-223.
    27. Daxini, Amar & O’Donoghue, Cathal & Ryan, Mary & Buckley, Cathal & Barnes, Andrew P., 2018. "Factors influencing farmers' intentions to adopt nutrient management planning: accounting for heterogeneity," 166th Seminar, August 30-31, 2018, Galway, West of Ireland 276183, European Association of Agricultural Economists.
    28. Eanes, Francis R. & Singh, Ajay S. & Bulla, Brian R. & Ranjan, Pranay & Fales, Mary & Wickerham, Benjamin & Doran, Patrick J. & Prokopy, Linda S., 2019. "Crop advisers as conservation intermediaries: Perceptions and policy implications for relying on nontraditional partners to increase U.S. farmers’ adoption of soil and water conservation practices," Land Use Policy, Elsevier, vol. 81(C), pages 360-370.
    29. Ulph, Alistair & Ulph, David, 2021. "Environmental policy when consumers value conformity," Journal of Environmental Economics and Management, Elsevier, vol. 109(C).
    30. Thompson, Nathanael M. & Reeling, Carson J. & Fleckenstein, Michelle R. & Prokopy, Linda S. & Armstrong, Shalamar D., 2021. "Examining intensity of conservation practice adoption: Evidence from cover crop use on U.S. Midwest farms," Food Policy, Elsevier, vol. 101(C).
    31. Aliou DIAGNE, 2006. "Diffusion And Adoption Of Nerica Rice Varieties In Côte D’Ivoire," The Developing Economies, Institute of Developing Economies, vol. 44(2), pages 208-231, June.
    32. Daxini, Amar & O'Donoghue, Cathal & Ryan, Mary & Barnes, Andrew & Buckley, Cathal & Daly, Karen, 2018. "Which factors influence farmers’ intentions to adopt nutrient management planning?," 92nd Annual Conference, April 16-18, 2018, Warwick University, Coventry, UK 273494, Agricultural Economics Society.
    33. Park, Jong-Yoon & Ale, Srinivasulu & Teague, W. Richard, 2017. "Simulated water quality effects of alternate grazing management practices at the ranch and watershed scales," Ecological Modelling, Elsevier, vol. 360(C), pages 1-13.
    34. Knowler, Duncan & Bradshaw, Ben, 2007. "Farmers' adoption of conservation agriculture: A review and synthesis of recent research," Food Policy, Elsevier, vol. 32(1), pages 25-48, February.
    35. Wade, Tara & Claassen, Roger, 2017. "Modeling No-Till Adoption By Corn And Soybean Producers: Insights Into Sustained Adoption," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 49(2), pages 186-210, May.
    36. Timothy D. Searchinger & Stefan Wirsenius & Tim Beringer & Patrice Dumas, 2018. "Assessing the efficiency of changes in land use for mitigating climate change," Nature, Nature, vol. 564(7735), pages 249-253, December.
    37. Aydin Basarir & Jeffrey M. Gillespie, 2006. "Multidimensional goals of beef and dairy producers: an inter‐industry comparison," Agricultural Economics, International Association of Agricultural Economists, vol. 35(1), pages 103-114, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Che, Yuyuan & Feng, Hongli & Hennessy, David, 2021. "Assessing Peer Effects and Subsidy Impacts in Technology Adoption: Application to Grazing Management Choices with Farm Survey Data," 2021 Conference, August 17-31, 2021, Virtual 315123, International Association of Agricultural Economists.
    2. Elizabeth Canales & Jason S. Bergtold & Jeffery R. Williams, 2020. "Conservation practice complementarity and timing of on‐farm adoption," Agricultural Economics, International Association of Agricultural Economists, vol. 51(5), pages 777-792, September.
    3. Giraudet, Louis-Gaëtan, 2020. "Energy efficiency as a credence good: A review of informational barriers to energy savings in the building sector," Energy Economics, Elsevier, vol. 87(C).
    4. Zengwei Xu & Jing Li & Jiliang Ma, 2022. "Impacts of Extension Contact on the Adoption of Formulated Fertilizers and Farm Performance among Large-Scale Farms in Rural China," Land, MDPI, vol. 11(11), pages 1-19, November.
    5. Li, Fuduo & Zhang, Kangjie & Ren, Jing & Yin, Changbin & Zhang, Yang & Nie, Jun, 2021. "Driving mechanism for farmers to adopt improved agricultural systems in China: The case of rice-green manure crops rotation system," Agricultural Systems, Elsevier, vol. 192(C).
    6. Zhang, Dayong & Li, Jun & Ji, Qiang, 2020. "Does better access to credit help reduce energy intensity in China? Evidence from manufacturing firms," Energy Policy, Elsevier, vol. 145(C).
    7. David J. Pannell & Roger Claassen, 2020. "The Roles of Adoption and Behavior Change in Agricultural Policy," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(1), pages 31-41, March.
    8. Louis-Gaëtan Giraudet, 2018. "Energy efficiency as a credence good: A review of informational barriers to building energy savings," Working Papers 2018.07, FAERE - French Association of Environmental and Resource Economists.
    9. Caroline Roussy & Aude Ridier & Karim Chaïb, 2014. "Adoption d’innovations par les agriculteurs : rôle des perceptions et des préférences," Post-Print hal-01123427, HAL.
    10. Okumah, Murat & Martin-Ortega, Julia & Chapman, Pippa J. & Novo, Paula & Cassidy, Rachel & Lyon, Christopher & Higgins, Alex & Doody, Donnacha, 2021. "The role of experiential learning in the adoption of best land management practices," Land Use Policy, Elsevier, vol. 105(C).
    11. Martey, Edward & Etwire, Prince M. & Adombilla, Ramson & Abebrese, Samuel O., 2023. "Information constraint and farmers’ willingness to pay for an irrigation scheduling tool," Agricultural Water Management, Elsevier, vol. 276(C).
    12. Laura Abrardi, 2019. "Behavioral barriers and the energy efficiency gap: a survey of the literature," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 46(1), pages 25-43, March.
    13. Dimitris Damigos & Christina Kaliampakou & Anastasios Balaskas & Lefkothea Papada, 2021. "Does Energy Poverty Affect Energy Efficiency Investment Decisions? First Evidence from a Stated Choice Experiment," Energies, MDPI, vol. 14(6), pages 1-17, March.
    14. Jane Musole Kwenye & Xiaoting Hou Jones & Alan Renwick, 2023. "Understanding Land-Use Trade-off Decision Making Using the Analytical Hierarchy Process: Insights from Agricultural Land Managers in Zambia," Land, MDPI, vol. 12(3), pages 1-19, February.
    15. Daxini, Amar & O’Donoghue, Cathal & Ryan, Mary & Buckley, Cathal & Barnes, Andrew P., 2018. "Factors influencing farmers' intentions to adopt nutrient management planning: accounting for heterogeneity," 166th Seminar, August 30-31, 2018, Galway, West of Ireland 276183, European Association of Agricultural Economists.
    16. Cohen, François & Glachant, Matthieu & Söderberg, Magnus, 2017. "Consumer myopia, imperfect competition and the energy efficiency gap: Evidence from the UK refrigerator market," European Economic Review, Elsevier, vol. 93(C), pages 1-23.
    17. Kent D. Daniel & Robert B. Litterman & Gernot Wagner, 2016. "Applying Asset Pricing Theory to Calibrate the Price of Climate Risk," NBER Working Papers 22795, National Bureau of Economic Research, Inc.
    18. Moreno-Cruz, Juan B. & Wagner, Gernot & Keith, David w., 2017. "An Economic Anatomy of Optimal Climate Policy," Working Paper Series rwp17-028, Harvard University, John F. Kennedy School of Government.
    19. Alan Renwick & Robyn Dynes & Paul Johnstone & Warren King & Lania Holt & Jemma Penelope, 2019. "Challenges and Opportunities for Land Use Transformation: Insights from the Central Plains Water Scheme in New Zealand," Sustainability, MDPI, vol. 11(18), pages 1-18, September.
    20. Stadelmann, Marcel & Schubert, Renate, 2018. "How Do Different Designs of Energy Labels Influence Purchases of Household Appliances? A Field Study in Switzerland," Ecological Economics, Elsevier, vol. 144(C), pages 112-123.

    More about this item

    Keywords

    Adoption gap; capital constraints; ecosystem services; rotational grazing;
    All these keywords.

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:209:y:2023:i:c:s0921800923000897. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolecon .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.