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Switching costs in transient technology use: Panel evidence from Kenyan maize production

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  • Maolong Chen
  • Chaoran Hu
  • Robert J. Myers

Abstract

The idea of switching costs and how they affect agricultural technology adoption has received little attention in the literature. We employ a dynamic switching model to show that switching costs generally discourage the adoption of new technologies by farmers, but the extent of the effect depends on the level of switching costs, as well as farmer perceptions and foresight. We provide an empirical strategy to identify switching costs and estimate their effects on adoption under different farmers’ perceptions about adoption uncertainty. An application to hybrid seed adoption in Kenya confirms the existence of switching costs. The correlated‐random‐effects probit results suggest there is heterogeneity in dominant farmer types across agro‐ecological zones in Kenya. Area‐specific policies are suggested to promote technology adoption in different environments. L'idée des coûts de changement et de leur impact sur l'adoption des technologies agricoles a reçu peu d'attention dans la littérature. Nous utilisons un modèle dynamique de changement pour montrer que les coûts de changement découragent généralement l'adoption de nouvelles technologies par les agriculteurs, mais l'ampleur de cet effet dépend du niveau des coûts de changement, ainsi que des perceptions et de la prévoyance des agriculteurs. Nous proposons une stratégie empirique pour identifier les coûts de changement et estimer leurs effets sur l'adoption en fonction des différentes perceptions des agriculteurs concernant l'incertitude de l'adoption. Une application à l'adoption de semences hybrides au Kenya confirme l'existence des coûts de changement. Les résultats du modèle Probit à effets aléatoires corrélés suggèrent qu'il existe une hétérogénéité des types d'agriculteurs dominants selon les zones agroécologiques du Kenya. Des politiques spécifiques à chaque zone sont proposées pour promouvoir l'adoption de technologies dans différents environnements.

Suggested Citation

  • Maolong Chen & Chaoran Hu & Robert J. Myers, 2025. "Switching costs in transient technology use: Panel evidence from Kenyan maize production," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 73(1), pages 105-120, March.
    • Handle: RePEc:bla:canjag:v:73:y:2025:i:1:p:105-120
    DOI: 10.1111/cjag.12376
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