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An Inertia Model for the Adoption of New Farming Practices

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  • Anastasiadis, Simon

Abstract

Nutrient emissions from agricultural land are now widely recognized as one of the key contributors to poor water quality in local lakes, rivers and streams. Nutrient trading has been suggested as a regulatory tool to improve and protect water quality. However, farmers’ attitudes suggest that they are resistant to making the changes required under such a scheme. This paper develops a model of farmers’ resistance to change and their adoption of new management practices under nutrient trading regulation. We specify resistance as a bound on the adoption of new practices and allow this bound to relax as farmers’ resistance to change weakens. This paper reflects current work in progress as part of the author’s Master’s Thesis. Future work will extend and build upon the material presented here. We request that readers refer to this paper only in the absence of a more recent version. This paper has been prepared for the purposes of the New Zealand Agricultural and Resource Economics Society conference August 2012.

Suggested Citation

  • Anastasiadis, Simon, 2012. "An Inertia Model for the Adoption of New Farming Practices," 2012 Conference, August 31, 2012, Nelson, New Zealand 136038, New Zealand Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:nzar12:136038
    DOI: 10.22004/ag.econ.136038
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    References listed on IDEAS

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    1. 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.
    2. Jonathan Skinner & Douglas Staiger, 2007. "Technology Adoption from Hybrid Corn to Beta-Blockers," NBER Chapters, in: Hard-to-Measure Goods and Services: Essays in Honor of Zvi Griliches, pages 545-570, National Bureau of Economic Research, Inc.
    3. Connor, Jeffery D. & Ward, John & Clifton, Craig & Proctor, Wendy & Hatton MacDonald, Darla, 2008. "Designing, testing and implementing a trial dryland salinity credit trade scheme," Ecological Economics, Elsevier, vol. 67(4), pages 574-588, November.
    4. Berger, Thomas, 2001. "Agent-based spatial models applied to agriculture: a simulation tool for technology diffusion, resource use changes and policy analysis," Agricultural Economics, Blackwell, vol. 25(2-3), pages 245-260, September.
    5. Simon Anastasiadis & Marie-Laure Nauleau & Suzi Kerr & Tim Cox & Kit Rutherford, 2011. "Does Complex Hydrology Require Complex Water Quality Policy? NManager Simulations for Lake Rotorua," Working Papers 11_14, Motu Economic and Public Policy Research.
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    Keywords

    Agribusiness; Environmental Economics and Policy; Farm Management; Land Economics/Use; Research and Development/Tech Change/Emerging Technologies;
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