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Technology Adoption and Agricultural Price Policy

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  • Tracy Miller
  • George Tolley

Abstract

Market interventions such as price supports or fertilizer subsidies can lead to gains from speeding up adoption of new technologies, but the policies distort resource allocation. A framework is developed for optimizing policies in light of the adoption-allocation trade off. Based on adoption coefficients and production parameters from third world agriculture, levels and duration of policies are estimated. Sensitivity analyses are performed. Gains are small at best and may be zero or negative in view of farmer costs of adjustment and deadweight losses from taxes.

Suggested Citation

  • Tracy Miller & George Tolley, 1989. "Technology Adoption and Agricultural Price Policy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(4), pages 847-857.
    • Handle: RePEc:oup:ajagec:v:71:y:1989:i:4:p:847-857.
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    File URL: http://hdl.handle.net/10.2307/1242662
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    Cited by:

    1. Seojin Cho & John M. Antle, 2024. "Price‐endogenous technology, producer welfare, and ex ante impact assessment: The case of industrial hemp," American Journal of Agricultural Economics, John Wiley & Sons, vol. 106(2), pages 883-903, March.
    2. Foster, William E. & Babcock, Bruce A., 1993. "Commodity Policy, Price Incentives, and the Growth in Per-Acre Yields," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 25(1), pages 253-265, July.
    3. Avila-Santamaria, Jorge J. & Useche, Maria P., 2016. "Urea Subsidies and the Decision to Allocate Land to a New Fertilizing Technology: Ex-ante Analysis in Ecuador," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 229851, Southern Agricultural Economics Association.
    4. Bohorova, Svetlana & Scrimgeour, Frank G., 2000. "Evaluating The Potential Productivity Gains Associated With Biotechnological Improvement: The Case Of Kiwifruit In New Zealand," Transitions in Agbiotech: Economics of Strategy and Policy, June 24-25, 1999, Washington, D.C. 25995, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    5. Hoffmann, Vivian & Jones, Kelly, 2021. "Improving food safety on the farm: Experimental evidence from Kenya on incentives and subsidies for technology adoption," World Development, Elsevier, vol. 143(C).
    6. Qiaoni Yang & Ningning Zhang & Qianwen Lu & Xinru Han, 2023. "Family Net Income, Input Factor Prices and Agriculture Services Selection Behavior of Maize Farmers," Agriculture, MDPI, vol. 14(1), pages 1-15, December.
    7. Adenle, Ademola A. & Wedig, Karin & Azadi, Hossein, 2019. "Sustainable agriculture and food security in Africa: The role of innovative technologies and international organizations," Technology in Society, Elsevier, vol. 58(C).
    8. Mutanyagwa, Ange Pacifique, 2017. "Smallholder Farmers’ Preferences For Improved Maize Seeds Varieties In Tanzania," Research Theses 265536, Collaborative Masters Program in Agricultural and Applied Economics.
    9. Jian Chen & Xiaohui Tian & Jialing Yu, 2024. "How a price‐support policy can hurt the environment: Empirical evidence from Northeast China," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 72(2), pages 131-148, June.
    10. Michael Harris & Alan Lloyd, 1991. "The Returns to Agricultural Research and the Underinvestment Hypothesis ‐ A Survey," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 24(3), pages 16-27, July.
    11. Weaver, Robert D. & Rauniyar, Ganesh, 1993. "The Economics of Adoption of Environmentally Beneficial Agricultural Practices: (EBAPs): An Analytical Review of Evidence," Staff Paper Series 256847, Pennsylvania State University, Department of Agricultural Economics and Rural Sociology.
    12. Radhakrishnan, Manju & Islam, Nazrul & Ward, Glynn, 2009. "Measuring the benefits from R&D investment beyond the farm gate: the case of the WA wine industry," 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia 48169, Australian Agricultural and Resource Economics Society.

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