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Are There Spatial Spillovers in the Adoption of Clean Technology? The Case of Organic Dairy Farming

  • David J. Lewis
  • Bradford L. Barham
  • Brian Robinson

This paper examines spatial spillovers associated with the adoption of organic dairy farming. We hypothesize that neighboring farmers can help to reduce the uncertainty of organic conversion by lowering the fixed costs of learning about the organic system. A spatially explicit 10-year panel dataset of more than 1,900 dairy farms in southwestern Wisconsin is used as input into a reduced-form econometric model of the decision to convert to organic production. Using an identification strategy that exploits the panel aspect of the micro dataset, we find evidence that the presence of neighboring organic dairy farms affects the conversion decision.

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File URL: http://le.uwpress.org/cgi/reprint/87/2/250
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Article provided by University of Wisconsin Press in its journal Land Economics.

Volume (Year): 87 (2011)
Issue (Month): 2 ()
Pages: 250-267

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Handle: RePEc:uwp:landec:v:87:y:2011:ii:1:p:250-267
Contact details of provider: Web page: http://le.uwpress.org/

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  1. Newburn, David A. & Berck, Peter, 2006. "Modeling suburban and rural residential development beyond the urban fringe," CUDARE Working Paper Series 1008R, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy, revised May 2006.
  2. Nancy Bockstael, 2008. "An Empirical Examination of the Timing of Land Conversions in the Presence of Farmland Preservation Programs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(3), pages 613-626.
  3. Lewis, David J. & Provencher, Bill & Butsic, Van, 2009. "The dynamic effects of open-space conservation policies on residential development density," Journal of Environmental Economics and Management, Elsevier, vol. 57(3), pages 239-252, May.
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  6. Janis M. Carey & David Zilberman, 2002. "A Model of Investment under Uncertainty: Modern Irrigation Technology and Emerging Markets in Water," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(1), pages 171-183.
  7. Marra, Michele & Pannell, David J. & Abadi Ghadim, Amir, 2003. "The economics of risk, uncertainty and learning in the adoption of new agricultural technologies: where are we on the learning curve?," Agricultural Systems, Elsevier, vol. 75(2-3), pages 215-234.
  8. Just, Richard E & Zilberman, David, 1983. "Stochastic Structure, Farm Size and Technology Adoption in Developing Agriculture," Oxford Economic Papers, Oxford University Press, vol. 35(2), pages 307-28, July.
  9. Parker, Dawn C. & Munroe, Darla K., 2007. "The geography of market failure: Edge-effect externalities and the location and production patterns of organic farming," Ecological Economics, Elsevier, vol. 60(4), pages 821-833, February.
  10. Avinash K. Dixit & Robert S. Pindyck, 1994. "Investment under Uncertainty," Economics Books, Princeton University Press, edition 1, volume 1, number 5474.
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