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Production risk and adoption of irrigation technology: evidence from small-scale farmers in Chile

Author

Listed:
  • César Salazar

    () (University of Bio–Bio)

  • John Rand

    () (University of Copenhagen)

Abstract

Abstract In most developing countries non-irrigation status often dominates adoption of traditional and modern irrigation technology. In this paper, we study the effect of production risk on irrigation technology choice among small-scale farmers in Chile, applying sample selection and discrete choice models. We find that more educated farmers, with credit access, receiving extension services, and living in communes with more adopters are more likely to use modern irrigation techniques. Moreover, production risk is often associated with adoption of traditional irrigation, and this risk often undermines a shift to more modern irrigation systems. Controlling for pre-conditions that determine irrigation choices clearly improves our understanding of small-scale farmer irrigation adoption decisions and we argue that weaker knowledge about and lower automatic diffusion of modern irrigation is a main obstacle for improving small-scale farmer productivity.

Suggested Citation

  • César Salazar & John Rand, 2016. "Production risk and adoption of irrigation technology: evidence from small-scale farmers in Chile," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 25(1), pages 1-37, December.
  • Handle: RePEc:spr:laecrv:v:25:y:2016:i:1:d:10.1007_s40503-016-0032-3
    DOI: 10.1007/s40503-016-0032-3
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    References listed on IDEAS

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    More about this item

    Keywords

    Production risk; Irrigation; Technology adoption;

    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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