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Toward an Understanding of Technology Adoption: Risk, Learning, and Neighborhood Effects

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  • Kenneth A. Baerenklau
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    Abstract

    Agricultural pollution frequently is addressed through economic incentives for adopting alternative management practices. Designing efficient incentives requires understanding technology adoption behavior. This study estimates an adoption model incorporating risk preferences, endogenous learning, and peer-group influence to examine the importance of these behavioral drivers. Results suggest risk preferences and learning are key determinants, and that peer-group influence is less relevant. Thus the impact of a policy may depend more on the ability of the incentive to compensate producers for anticipated losses, and the extent to which information is shared, rather than on the “bandwagon” effect produced by early adopters or targeted incentives.

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    File URL: http://le.uwpress.org/cgi/reprint/81/1/1
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    Bibliographic Info

    Article provided by University of Wisconsin Press in its journal Land Economics.

    Volume (Year): 81 (2005)
    Issue (Month): 1 ()
    Pages:

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    Handle: RePEc:uwp:landec:v:81:y:2005:i:1:p1-19

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    Web page: http://le.uwpress.org/

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    Cited by:
    1. Waters, James, 2013. "The influence of information sources on inter- and intra-firm diffusion: evidence from UK farming," MPRA Paper 50955, University Library of Munich, Germany.
    2. Ihli, Hanna Julia & Musshoff, Oliver, 2013. "Investment Behavior of Ugandan Smallholder Farmers: An Experimental Analysis," Discussion Papers 154775, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    3. Matuschke, Ira, 2008. "Evaluating the impact of social networks in rural innovation systems: An overview," IFPRI discussion papers 816, International Food Policy Research Institute (IFPRI).
    4. Wollni, Meike & Lee, David R. & Thies, Janice E., 2009. "Effects of Participation in Organic Markets and Farmer-based Organizations on the Adoption of Soil Conservation Practices among Small-scale Farmers in Honduras," 2009 Conference, August 16-22, 2009, Beijing, China 51669, International Association of Agricultural Economists.
    5. Magnan, Nicholas & Spielman, David J. & Gulati, Kajal, 2013. "Female social networks and learning about a new technology in eastern Uttar Pradesh, India," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150688, Agricultural and Applied Economics Association.
    6. Baerenklau, Kenneth A., 2005. "Some Simulation Results for a Green Insurance Mechanism," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 30(01), April.
    7. Wollni, Meike & Lee, David R. & Thies, Janice E., 2008. "Effects of participation in organic markets and farmer-based organizations on adoption of soil conservation practices among small-scale farmers in Honduras," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6423, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Yoo, Do-il, 2012. "Individual and Social Learning in Bio-technology Adoption: The Case of GM Corn in the U.S," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124975, Agricultural and Applied Economics Association.

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