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Risk Preferences and Climate Smart Technology Adoption: A Duration Model Approach for India

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  • Ray, M.
  • Maredia, M.
  • Shupp, R.

Abstract

This paper examines the role of individual risk preferences in the decision of a climate smart technology in two northern states of India. We conducted a household survey and a field experiment using real cash with Indian farmers to elicit their risk preferences, and used them to explain their adoption of laser land leveler. The analysis extended the measurement of risk preferences beyond the expected utility theory to incorporate prospect theory. We use duration analysis approach to model the time to adoption and find that risk averse farmers and farmers who overvalue smaller probabilities adopt his technology sooner than others. Acknowledgement : We are really thankful to strengthening Impact Assessment in the CGIAR and Michigan State University's Asian Study Center for thier generous funding for this study.

Suggested Citation

  • Ray, M. & Maredia, M. & Shupp, R., 2018. "Risk Preferences and Climate Smart Technology Adoption: A Duration Model Approach for India," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277502, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae18:277502
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    References listed on IDEAS

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    Keywords

    Research and Development/ Tech Change/Emerging Technologies;

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