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

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

Abstract

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.

Suggested Citation

  • David J. Lewis & Bradford L. Barham & Brian Robinson, 2011. "Are There Spatial Spillovers in the Adoption of Clean Technology? The Case of Organic Dairy Farming," Land Economics, University of Wisconsin Press, vol. 87(2), pages 250-267.
  • Handle: RePEc:uwp:landec:v:87:y:2011:ii:1:p:250-267
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    References listed on IDEAS

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    Cited by:

    1. repec:gam:jsusta:v:9:y:2017:i:11:p:2024-:d:117595 is not listed on IDEAS
    2. Mooney, Daniel F. & Barham, Bradford L. & Lian, Chang, 2013. "Sustainable Biofuels, Marginal Agricultural Lands, and Farm Supply Response: Micro-Evidence for Southwest Wisconsin," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150510, Agricultural and Applied Economics Association.
    3. repec:eee:jfpoli:v:74:y:2018:i:c:p:126-137 is not listed on IDEAS
    4. Allan, Corey & Jaffe, Adam B. & Sin, Isabelle, 2014. "Diffusion of Green Technology: A Survey," International Review of Environmental and Resource Economics, now publishers, vol. 7(1), pages 1-33, April.
    5. repec:eee:wdevel:v:96:y:2017:i:c:p:359-374 is not listed on IDEAS
    6. Wollni, Meike & Andersson, Camilla I.M., 2013. "Spatial patterns of organic agriculture adoption: evidence from Honduras," Discussion Papers 146715, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    7. Storm, Hugo & Heckelei, Thomas, 2015. "Local and regional spatial interactions in the analysis of Norwegian farm growth," 150th Seminar, October 22-23, 2015, Edinburgh, Scotland 212648, European Association of Agricultural Economists.
    8. Wollni, Meike & Andersson, Camilla, 2014. "Spatial patterns of organic agriculture adoption: Evidence from Honduras," Ecological Economics, Elsevier, vol. 97(C), pages 120-128.
    9. Deininger, Klaus & Jin, Songqing & Xia, Fang & Huang, Jikun, 2014. "Moving Off the Farm: Land Institutions to Facilitate Structural Transformation and Agricultural Productivity Growth in China," World Development, Elsevier, vol. 59(C), pages 505-520.
    10. Lawley, Chad & Yang, Wanhong, 2015. "Spatial interactions in habitat conservation: Evidence from prairie pothole easements," Journal of Environmental Economics and Management, Elsevier, vol. 71(C), pages 71-89.
    11. Storm, Hugo & Heckelei, Thomas, 2016. "Local and regional spatial interactions of Norwegian farm growth," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235576, Agricultural and Applied Economics Association.
    12. repec:kap:enreec:v:67:y:2017:i:4:d:10.1007_s10640-016-0004-8 is not listed on IDEAS
    13. Yang, Wei, 2016. "spatial analysis of determinants of dairy farmers' adoption of best management practices for water protection," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235434, Agricultural and Applied Economics Association.
    14. repec:gam:jsusta:v:9:y:2017:i:8:p:1438-:d:108365 is not listed on IDEAS
    15. Awudu Abdulai & Wallace Huffman, 2014. "The Adoption and Impact of Soil and Water Conservation Technology: An Endogenous Switching Regression Application," Land Economics, University of Wisconsin Press, vol. 90(1), pages 26-43.
    16. Borchers, Allison M. & Xiarchos, Irene & Beckman, Jayson, 2014. "Determinants of wind and solar energy system adoption by U.S. farms: A multilevel modeling approach," Energy Policy, Elsevier, vol. 69(C), pages 106-115.
    17. Mooney, Daniel F. & Barham, Bradford L., 2013. "What Drives the Adoption of Clean Agricultural Technologies? An Ex Ante Assessment of Sustainable Biofuel Production in Southwestern Wisconsin," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150557, Agricultural and Applied Economics Association.
    18. Storm, Hugo & Heckelei, Thomas, 2016. "Using Multiple Neighboring Interaction Effects In Spatial Regression Specifications To Reduce Omitted Variable Bias," 56th Annual Conference, Bonn, Germany, September 28-30, 2016 244763, German Association of Agricultural Economists (GEWISOLA).
    19. Csonka, Arnold & Fertő, Imre, 2016. "Crisis and Agglomeration in the Hungarian Hog Sector," 149th Seminar, October 27-28, 2016, Rennes, France 244787, European Association of Agricultural Economists.
    20. Wollni, Meike & Andersson, Camilla I.M., 2013. "Spatial effects in organic agriculture adoption in Honduras: the role of social conformity, positive externalities, and information," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149911, Agricultural and Applied Economics Association.
    21. Fertő, Imre & Csonka, Arnold, 2017. "Válság- és agglomerációs hatások a magyarországi sertéstartásban
      [Crisis and agglomeration in Hungary s pig production]
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(2), pages 105-122.

    More about this item

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land

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