Toward an Understanding of Technology Adoption: Risk, Learning, and Neighborhood Effects
Agricultural pollution frequently is addressed through economic incentives for adopting alternative management practices. Designing efficient incentives requires understanding technology adoption behavior. This study estimates an adoption model incorporating risk preferences, endogenous learning, and peer-group influence to examine the importance of these behavioral drivers. Results suggest risk preferences and learning are key determinants, and that peer-group influence is less relevant. Thus the impact of a policy may depend more on the ability of the incentive to compensate producers for anticipated losses, and the extent to which information is shared, rather than on the “bandwagon” effect produced by early adopters or targeted incentives.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Joseph Eisenhauer, 1997. "Risk aversion, wealth, and the DARA hypothesis: A new test," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 3(1), pages 46-53, February.
- Jensen, Richard, 1982. "Adoption and diffusion of an innovation of uncertain profitability," Journal of Economic Theory, Elsevier, vol. 27(1), pages 182-193, June.
- Abhijit V. Banerjee, 1992. "A Simple Model of Herd Behavior," The Quarterly Journal of Economics, Oxford University Press, vol. 107(3), pages 797-817.
- Mark Rosenzweig & Andrew D. Foster, .
"Learning by Doing and Learning from Others: Human Capital and Technical Change in Agriculture,"
_068, University of Pennsylvania.
- Foster, Andrew D & Rosenzweig, Mark R, 1995. "Learning by Doing and Learning from Others: Human Capital and Technical Change in Agriculture," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1176-1209, December.
- Kaplan, Jonathan D. & Howitt, Richard E. & Farzin, Y. Hossein, 2003. "An information-theoretical analysis of budget-constrained nonpoint source pollution control," Journal of Environmental Economics and Management, Elsevier, vol. 46(1), pages 106-130, July.
When requesting a correction, please mention this item's handle: RePEc:uwp:landec:v:81:y:2005:i:1:p1-19. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.