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Understanding Producers’ Motives for Adopting Sustainable Practices: The Role of Expected Rewards, Risk Perception, and Risk Tolerance

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  • Hofenk, Dianne
  • Pennings, Joost M.E.
  • Trujillo-Barrera, Andres

Abstract

This paper examines producers’ motives underlying the adoption of sustainable practices. In particular, we focus on expected economic, social, and personal rewards, and examine the role of producers’ risk perception and risk tolerance. Results from personal computer-guided interviews with164 hog producers show that the adoption of sustainable practices is affected by expected economic rewards but not by social and personal rewards. Further, while perceived risk is a barrier to the adoption of sustainable practices, risk tolerance is a positive moderator of the relationship between economic rewards and adoption. In addition, higher income and tax benefits have a significant a positive relationship with adoption. Other characteristics of the firm and the owner, such as leverage and education, do not seem to play a role.

Suggested Citation

  • Hofenk, Dianne & Pennings, Joost M.E. & Trujillo-Barrera, Andres, 2014. "Understanding Producers’ Motives for Adopting Sustainable Practices: The Role of Expected Rewards, Risk Perception, and Risk Tolerance," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170624, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea14:170624
    DOI: 10.22004/ag.econ.170624
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    1. Hoffmann, Arvid O.I. & Post, Thomas & Pennings, Joost M.E., 2013. "Individual investor perceptions and behavior during the financial crisis," Journal of Banking & Finance, Elsevier, vol. 37(1), pages 60-74.
    2. Rosseel, Yves, 2012. "lavaan: An R Package for Structural Equation Modeling," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 48(i02).
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