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Innovation in Irrigation Technologies for Sustainable Agriculture: An Endogenous Switching Analysis on Italian Farms’ Land Productivity

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  • Sabrina Auci

    (University of Palermo, Department of Political Science and International Relations)

  • Andrea Pronti

    (University of Ferrara, Department of Economics and Management)

Abstract

This paper aims to analyse how the farmer’s choice on adopting innovative and sustainable irrigation systems such as water conservation and saving technologies (WCSTs), induced also by the climatic variability, would shape the economic resilience of the Italian agricultural farms by improving land productivity. A proper water management would increase efficiency in the agricultural activities by improving the use of water endowments and rising agricultural economic performances to address a sustainable development. We used an endogenous switching regression model considering two sources of endogeneity: the selection indicator and a continuous endogenous explanatory variable. By applying the control function method, a correlated random effects probit model for the selection equation and a correlated random effects model for the outcome equation are estimated in a panel data context based on a detailed micro-level dataset of all the Italian farms. Our results confirm that adopting WCSTs increases land productivity of adopters significantly.

Suggested Citation

  • Sabrina Auci & Andrea Pronti, 2020. "Innovation in Irrigation Technologies for Sustainable Agriculture: An Endogenous Switching Analysis on Italian Farms’ Land Productivity," SEEDS Working Papers 1220, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Dec 2020.
    • Handle: RePEc:srt:wpaper:1220
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    Keywords

    Water scarcity; Innovation; Micro irrigation; Sustainable agriculture; Italian farms;
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