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Risk Preferences and Pesticide Use by Cotton Farmers in China

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  • Elaine Liu

    ()
    (University of Houston)

  • JiKun Huang

    (Center for Chinese Agricultural Policy)

Abstract

Despite insect-resistant Bt cotton has been lauded for its ability to reduce the use of pesticides, studies have shown that Chinese Bt cotton farmers continue to use excessive amounts of pesticides. Using results from a survey and an artefactual field experiment, we find that farmers who are more risk averse use greater quantities of pesticides. We also find that farmers who are more loss averse use lesser quantities of pesticides. This result is consistent with our conceptual framework and suggestive evidence where farmers behave in a loss averse manner in the health domain and place more weight on the importance of health over money in the loss domain.

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Bibliographic Info

Paper provided by Department of Economics, University of Houston in its series Working Papers with number 201310920.

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Date of creation: 19 Apr 2013
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Handle: RePEc:hou:wpaper:201310920

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Postal: Houston TX 77023
Web page: http://www.uh.edu/class/economics/
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Keywords: Risk Preferences; Prospect Theory; Pesticide Use;

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Citations

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Cited by:
  1. Chen, Ruijian & Huang, Jikun & Qiao, Fangbin, 2013. "Farmers' knowledge on pest management and pesticide use in Bt cotton production in china," China Economic Review, Elsevier, vol. 27(C), pages 15-24.
  2. Vieider, Ferdinand M. & Truong, Nghi & Martinsson, Peter & Pham Khanh Nam & Martinsson, Peter, 2013. "Risk preferences and development revisited: A field experiment in Vietnam," Discussion Papers, WZB Junior Research Group Risk and Development SP II 2013-403, Social Science Research Center Berlin (WZB).
  3. 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.
  4. Xiaodong Du & Hongli Feng & David A. Hennessy, 2014. "Rationality of Choices in Subsidized Crop Insurance Markets," Center for Agricultural and Rural Development (CARD) Publications 14-wp545, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  5. Liebenehm, Sabine & Waibel, Hermann, 2013. "Risk and Time Preferences of West African Cattle Farmers," 53rd Annual Conference, Berlin, Germany, September 25-27, 2013 156110, German Association of Agricultural Economists (GEWISOLA).

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