Analyzing technology adoption using microstudies: limitations, challenges, and opportunities for improvement

Policy makers and interest groups have many questions about the use of improved technologies in developing country agriculture. These include the roles of policies, institutions, and infrastructure in the adoption of improved technologies and their impact on productivity and welfare. Most micro‐level adoption studies, however, cannot address these important policy issues. Drawing on an extensive review of the literature on the adoption of agricultural technologies, this article suggests alternative approaches for designing technology adoption studies to make them useful for policy makers. It explores the generic limitations of cross‐sectional adoption studies carried out in small numbers of communities and discusses some problems faced in conducting such studies. Recommendations include the use of sampling approaches that allow data from microstudies to be generalized to higher levels of aggregation, adherence to clearly defined terms that are standardized across studies, and careful examination of the assumptions that often underlie such studies.     

The ‘Direct Costs’of Livestock Disease: The Development of a System of Models for the Analysis of 30 Endemic Livestock Diseases in Great Britain

The ‘direct costs’attributable to 30 different endemic diseases of farm animals in Great Britain are estimated using a standardised method to construct a simple model for each disease that includes consideration of disease prevention and treatment costs. The models so far developed provide a basis for further analyses including cost‐benefit analyses for the economic assessment of disease control options. The approach used reflects the inherent livestock disease information constraints, which limit the application of other economic analytical methods. It is a practical and transparent approach that is relatively easily communicated to veterinary scientists and policy makers. The next step is to develop the approach by incorporating wider economic considerations into the analyses in a way that will demonstrate to policy makers and others the importance of an economic perspective to livestock disease issues.     

The adoption of intensive monocrop horticulture in southern Cameroon

Results from a 1997 survey of 208 households in the humid forest zone of southern Cameroon indicate that African policy makers seeking to intensify agricultural production should focus attention on the horticultural sub‐sector. The survey, which gathered information on horticultural production practices, found that the average expenditure on agro‐chemical inputs by horticultural producers using monocrop production systems was 190US$/ha, which greatly exceeds the FAO reported national average expenditure of 6.50 US$/ha. A logit model of monocrop adoption indicated that the size of land holding per household had a negative effect on adoption, congruent with population‐driven technical change and that increases in unit transportation costs significantly decreased the probability of adoption. These findings suggest that policy makers should target horticultural intensification in areas of higher population density and promote investment in rural roads. The age of the household head had a significant negative and elastic effect on adoption, which in combination with an increase in the cohort of younger farmers in the rural population induced by macro‐economic events contributed to the spread of intensified horticulture. In the study area, roughly two‐thirds of rural households also produce cocoa and the quantity of cocoa produced was positively associated with adoption of intensive horticultural systems suggesting that export crop promotion indirectly facilitated diversification of agriculture. Women's participation in intensive monocrop production was limited and efforts to promote their greater involvement are recommended.     

Farmers’ intrinsic motivations,barriers to the adoption of conservation practices and effectiveness of policy instruments: Empirical evidence from northern Australia

The rate and extent of adoption of conservation practices by farmers is influenced, in principle, by characteristics of the practices and those of the farmers. Governments use policy instruments to increase the rate of adoption of practices which generate public benefits if it is deemed that privately optimal adoption rates will not lead to publicly optimal conservation outcomes. Recent nation-wide conservation programs in Australia have attracted criticism for low levels of effectiveness and efficiency. Could it be that program design has ignored key adoption factors, in particular characteristics of the target audience? If adoption is subject to personal factors, such as the motivations for farming, then it is likely that so are farmers’ responses to policy approaches and instruments. In this case study, surveys were conducted of farmers in three regions within the tropical savannas of northern Australia, where land-use systems are characterized by large-scale broad-acre beef grazing enterprises. Inter alia, these surveys collected data on graziers’ motivations, impediments to adoption of conservation practices, and perceived effectiveness of policy instruments in overcoming impediments. The research found that graziers had a very high level of conservation and lifestyle motivation and were motivated to lesser extents by financial/economic and social considerations, pointing to a strong stewardship ethic of graziers, or altruistic motif. Motivational profiles were significantly correlated with farmers’ perceptions about what constrained them from implementing conservation based management systems. Motivational profiles also explained differences in farmers’ perceptions of and stated propensity to interact with policy instruments, particularly at a regional scale and in the context of historical government interventions. On the basis of the empirical evidence presented, governments would be well advised to harness the diverse set of aspirations and motivations of farmers when designing conservation programs rather than. In particular, conservation programs need to take advantage of farmers’ stewardship ethic for maximum effectiveness and efficiency, and minimize the risk of crowding out intrinsic motivation and altruistic behaviours.     

Determinants of farm diversification in the Netherlands

Farm diversification has been prominently supported by agricultural policy makers aiming to support rural development. To increase the understanding of determinants influencing diversification and hence to increase the efficiency of policies aiming to support farm diversification this paper presents the results of an analysis of diversification determinants. The research investigates Dutch farms diversification strategies using Farm Structural Survey (FSS) data of 2011 including 70,392 farms. The study uses a binary logit model to determine the characteristics influencing the diversification decision in general. Furthermore, an in-depth analysis for six diversification strategies was conducted. Additionally the study categorised the specific diversification activities in order to estimate a multinomial probit model, analysing three choice categories simultaneously. This enables us to compare determinants of farm diversification in general with determinants of specific activities. The analysis includes socio- demographic, economic and geophysical farm characteristics assumed to influence the diversification decision. Even though diversification is largely influenced by similar determinants, we find differences that are most pronounced for the adoption of nature conservation strategies. Consequently, it is important for policy makers to target policies at specific diversification activities in order to increase efficiency.     

At‐home meat consumption in China: an empirical study*

The remarkable economic changes occurring within China since 1978 have resulted in a striking alteration in food consumption patterns, and one marked change is the increasing consumption of meat. Given China’s large population, a small percentage change in per capita meat consumption could lead to a dramatic impact on the production and trade of agricultural products. Such changes have major implications for policy makers and food marketers. This paper concentrates on meat consumption patterns in the home in China. A censored linear approximate almost ideal demand system model was employed in the study, and major economic parameters were estimated for different meat items. Data used in this study were collected from two separate consumer surveys – one urban and one rural in 2005.     

Biodiversity and Green Infrastructure in Europe: Boundary object or ecological trap?

The concept of green infrastructure is widely used in environmental planning, but so far it has no standard definition. Planners, conservationists and scientists tend to welcome the term because it can serve as a boundary object, providing links among policy makers, developers and different academic disciplines. However, the concept of green infrastructure creates risks for biodiversity conservation in its adoption. It can be used to water down biodiversity conservation aims and objectives as easily as it can be used to further them because of the different ideas associated with it and the multiple interests pursued. In this paper, we address such risks by looking, among others, at the European Union’s Green Infrastructure Strategy and we suggest how planners and conservationists might deal with its growing importance in environmental policy and planning to enhance its value for biodiversity conservation.     

Household Determinants of the Adoption of Improved Cassava Varieties using DNA Fingerprinting to Identify Varieties in Farmer Fields: A Case Study in Colombia

We examine factors affecting the adoption of improved cassava varieties of 217 households in the Cauca Department in southwest Colombia. Using DNA fingerprinting through Single Nucleotide Polymorphisms (SNPs), we identified different cultivars in farmers fields. We also used this information to remove possible bias in the adoption model that could have resulted from a misclassification of improved varieties (IVs). As a result, we found that farmers substantially overestimate their use of IVs and there are important differences in the determinants of adoption between farmer self‐identification and DNA fingerprinting. This finding implies that the incorporation of DNA fingerprinting in IV adoption studies is important to ensure the accuracy of future agricultural economic research and the relevance of subsequent policy recommendations.     

Use of the single factoral terms of trade to analyse agricultural production*

The aim in this note is to reintroduce the single factoral terms of trade into the policy arena. This economic concept has scarcely been used by analysts or policy makers over the past three decades. It is defined and compared favourably with other terms of trade concepts in terms of their usefulness to agricultural policy makers in Australia. A distinction is made between the single factoral terms of trade from the viewpoint of the farm business and from the viewpoint of the farm household, but only slightly different indices are specified in each case because of the very high positive correlation between farm prices paid and consumer prices. Developing industry‐level indices appears to be a more attractive way to proceed given the substantially different rates of growth in total factor productivity (TFP) between agricultural industries. Despite its usefulness, challenges lie ahead in accurately estimating each of the two components of the single factoral terms of trade, the net barter terms of trade and TFP, and the relations between these two components.     

Roundup Ready soybeans in Argentina: farm level and aggregate welfare effects

Although adoption rates of genetically modified crops have been staggering in some countries, there is still comparatively little evidence about biotechnology impacts under diverse agroecological and institutional conditions. These knowledge gaps lead to an overly precautious attitude among policy makers and the public. This article analyzes the effects of Roundup Ready (RR) soybeans in Argentina, the country with the second biggest transgenic area worldwide. Based on recent survey data, it is shown that the technology increases total factor productivity by 10% on average, with cost savings being somewhat more pronounced for smaller than for larger farms. The reduction in use of toxic herbicides and of tillage operations entails positive environmental repercussions. Aggregate welfare effects are computed over the 1996–2001 period with a three-region, partial equilibrium model, comprising Argentina, the United States, and the rest of the world. In 2001, RR soybeans created more than US$1.2 billion of economic surplus at the global level. The largest share went to consumers (53%), followed by seed and biotechnology firms (34%), and agricultural producers (13%). Due to comparatively weak intellectual property protection, and thus only small technology mark-ups in seed prices and widespread adoption, Argentine soybean growers receive 90% of the benefits in that country. This demonstrates that farmers in developing countries can gain considerably when they obtain access to suitable foreign innovations through technology spill-overs.     

Farmers' perceptions of benefits and factors affecting the adoption of improved dual-purpose cowpea in the dry savannas of Nigeria

This study links participatory research methods, geographic information systems (GIS) techniques, village and household‐level surveys, and a tobit analysis to examine the adoption and impact issues related to a new technology, improved varieties of dual‐purpose cowpea (IDPC), developed by International Institute of Tropical Agriculture (IITA) and International Livestock Research Institute (ILRI) and recently released in Nigeria. The article analyzes factors affecting the adoption and impact of the technology across different socioeconomic domains as defined by degree of market access and population density. The results show multiple benefits from this flexible leguminous crop, many of which relate to the fodder and soil fertility‐enhancing aspects of IDPC rather than higher grain yields per se. The intensity of adoption was affected by different village‐ and household‐level factors in each socioeconomic domain, allowing more sharply defined recommendation domain‐targeting strategies. The multiple research approaches taken also provided useful lessons at different system levels regarding the benefits of, and perceived problems with, this technology for researchers, development practitioners, and policy makers. The collaborative research approaches taken in this study are helping to close the “feedback loop” from farmers back to researchers and others attempting to disseminate the technology, and by doing so, should contribute to faster and more widespread uptake of this technology.     

Toward farm-based policy analysis: concepts applied in Haiti

Many policies – on the delivery of inputs or on marketing systems, credit, or extension – influence the potential utilization of new technologies. Through 'farm-based policy analysis' it is possible to use data generated in on-farm research (OFR) to identify policy constraints to the use of new technologies, and to effectively communicate that information to policy makers. This paper describes a tentative framework for farm-based policy analysis and suggests a sequence of five steps for the analysis: (1) identify the policy-induced constraints; (2) determine the rationale behind the policy; (3) identify the decision makers to whom the results should be communicated; (4) identify solutions or policy options; and (5) communicate results to decision makers. A case of farm-based policy analysis from Haiti illustrates the concepts and methods described in the first part of the paper. On-farm experiments in Les Cayes, Haiti, confirmed a response to nitrogen in maize, but adoption of the recommended practice and consequent gains in productivity and income were constrained by the scarcity of urea in the local market. An analysis of local supply and potential local demand for urea and the potential benefits of urea application was conducted, and results communicated to two target groups of decision makers: representatives of the Ministry of Agriculture responsible for fertilizer distribution policy, and representatives of private fertilizer enterprises. These groups responded by making larger supplies of urea available to local farmers. Adoption of the fertilizer recommendation and urea sales increased. The case demonstrates the potential value of farm-based policy analysis building upon data from OFR.     

A Selective Review of the Economic Analysis of Animal Health Management

Economists and veterinarians use similar approaches to analyse animal health threats, but veterinarians are concerned primarily with providing practical guidelines to peers and/or policy‐makers, while economists focus more on understanding the benefits to society as a whole and often provide only general guidelines to policy‐makers and little specific direction to practicing veterinarians. Despite the benefits of working together, differences in perspective and analytical approach often cause economists and veterinarians to struggle in dialogue and to lose some of the mutual gains that could be achieved through collaboration. This article discusses the use of economics in animal health management, identifies several useful literature reviews, and analyses a number of recent studies to explore the advantages and disadvantages of different conceptual and methodological approaches.     

Farm-Level Modeling for Bigger Issues

The purpose of this paper is to discuss how farm-level modelers can best extend their research to address issues broader than just farm income. The paper describes how trade-off curves are a valuable tool for summarizing the missing information to policy makers on economic problems related to sustainability issues and agriculture. We outline steps an economic researcher could follow in developing an integrated farm-level model that successfully links changes in environmental quality with agricultural practices so that the relevant trade-offs for policy analysis can be quantified.     

Energy Productivity Growth in the Dutch Greenhouse Industry

Profitability of Dutch greenhouse firms is largely dependent on energy costs, and policy makers focus on reducing the use of energy by these firms. This article uses Russell measures of TE to develop indicators of energy productivity growth. Results show that energy productivity grew by 2.8% annually in the period 1976–95, with technical progress being the key factor driving the process of productivity growth. From this we conclude that policies aiming at enhancing the adoption of technological innovations are more effective, if due attention is paid to measures for improving TE.     

A discussion of the market and policy failures associated with the adoption of herbicide-tolerant crops

Weed control in the U.S. Midwest has become increasingly herbicide-centric due to the adoption of herbicide-tolerant (HT) crops in the 1990s. That integrated weed management (IWM) practices, including ecological and mechanical controls, are scarcely used is concerning. IWM would be a more sustainable form of farming for two reasons. First, it would reduce the negative health and environmental externalities associated with herbicide use. Second, it would reduce the selection pressure on weed populations and the development of weed resistance to some herbicides, thereby reducing the uncertainty of the long-term effectiveness of herbicidal weed control. In this context, we develop an economic framework to clarify the interplay among the different market failures that either contribute to the herbicidal ‘lock-in’ or make it problematic. We then analyse the evidence for and perceptions of these market failures based on twenty-four semi-structured interviews with farmers and experts conducted in 2017, as well as on discussions in the academic literature. To this end, we put into perspective the possible self-reinforcing effects in the adoption path of HT crops, such as increasing farm size, changes in farm equipment, increasing incentives for simplified crop rotations, and the loss of practical knowledge of IWM practices.     

Adoption of Multiple Sustainable Agricultural Practices in Rural Ethiopia

The adoption and diffusion of sustainable agricultural practices (SAPs) has become an important issue in the development‐policy agenda for sub‐Saharan Africa, especially as a way to tackle land degradation, low agricultural productivity and poverty. However, the adoption rates of SAPs remain below expected levels. This study analyses the factors that facilitate or impede the probability and level of adoption of interrelated SAPs, using recent data from multiple plot‐level observations in rural Ethiopia. Multivariate and ordered probit models are applied to the modelling of adoption decisions by farm households facing multiple SAPs, which can be adopted in various combinations. The results show that there is a significant correlation between SAPs, suggesting that adoptions of SAPs are interrelated. The analysis further shows that both the probability and the extent of adoption of SAPs are influenced by many factors: a household’s trust in government support, credit constraints, spouse education, rainfall and plot‐level disturbances, household wealth, social capital and networks, labour availability, plot and market access. These results imply that policy‐makers and development practitioners should seek to strengthen local institutions and service providers, maintain or increase household asset bases and establish and strengthen social protection schemes in order to improve the adoption of SAPs.     

Assessing the effectiveness of rural credit policy on the adoption of integrated crop-livestock systems in Brazil

This study analyzes the effectiveness of rural credit policy to increase the adoption of ICLS. Analyzes are based on a survey with 175 farmers in the State of São Paulo, Brazil. Our estimates suggest that rural credit has positive and relevant impacts on the adoption of ICLS. In turn, the adoption of these systems may also involve investments in fixed capital and increases in operational costs, which create additional demand for rural credit. Other factors, such as access to extension policy, production scale, ex-ante perceptions, and market infrastructure also explain ICLS adoption. The access to rural credit policy is also determined by dependence on farm income, farmer’s perception of transaction costs, and supply of credit in the municipality. The study finally discusses important implications for the devising of rural credit policies and the diffusion of sustainable production systems in developing countries.     

Adoption of soil conservation practices in Belgium: An examination of the theory of planned behaviour in the agri-environmental domain

Soil erosion is a problem with serious on-site and off-site consequences. There exists a broad series of measures to mitigate soil erosion, unfortunately policy makers observe little voluntary adoption. This paper reports on a study to elicit the factors explaining adoption of soil erosion control practices in Belgium. Following a socio-psychological approach, the theory of planned behaviour (TPB), adoption of cover crops, reduced tillage and buffer strips is evaluated using linear regression techniques. Results show that the most explaining factor is attitude towards the soil conservation practice. The TPB adapted to include perceived control and difficulty appears to provide a suitable framework for evaluating adoption of erosion control measures in Belgium. Future interventions directed at promoting erosion control measures should be directed at changing the attitude of farmers. Further study is, however, required in order to elucidate the cognitive foundations of the negative attitude of a majority of farmers towards the implementation of erosion control practices.     

Review - Thomas Sterner (2003): Policy Instruments for Environmental and Natural Resource Management

RFF Press, Washington D. C. ISBN 1-891853-12-0As research in environmental policy has accumulated, and the number of applications of policy instruments for environmental and natural resource management has grown, so has the arsenal of different instruments available for the policy maker. This development has continued up to a point where it now becomes difficult for the individual researcher or policy maker to survey this vast field. With this in mind, there are many that have reason to be grateful for Thomas Sterner's effort in his new book, Policy Instruments for Environmental and Natural Resource Management. This book not only details the economic principles behind environmental policy, but also presents a wide range of examples of practical policy design in areas such as road transportation, industrial pollution and the management of natural resources and ecosystems.In the preface Thomas Sterner states that the book is intended for academicians, like university professors, graduate and undergraduate students, as well as analysts who advice policy makers. In particular, the book turns towards people of these categories in countries who have not to date made extensive use of market-based policy instruments. Presumably, this includes countries in the developing world and former planned economies. The book is non-technical in the sense that only a small amount of mathematical formulas are presented to not deter reader with a less solid background in maths.The book is divided into seven sections. The first part (entitled: The Need for Environmental and Natural Resource Policy) details the causes behind environmental degradation and introduces important concepts in environmental economics, such as externalities and public goods. The section also gives an outline of bioeconomics and the evolution of rights. The material is similar to other textbooks, and should be well known to the environmental economist. Part 2 (Review of Policy Instruments) presents the most important policy tools in the economists tool box, including direct regulation, taxes, tradeable permits, subsidies and property rights related instruments. This material is presented in an accessible, non-technical manner. Part 3 (Selection of Policy Instruments) concentrates on how to choose between different policy instruments, taking into account aspects such as efficiency, uncertainty, equilibrium effects, cost distribution, etc. This section should be particularly useful for analysts who advice policy makers. The information in this section is also neatly summarized in a “Policy Selection Matrix” in Chapter 18.In Parts 4, 5 and 6 the book becomes really unique and interesting for an academic audience. In these sections the author analyses a wealth of examples of policy design in areas such as road transportation, industrial pollution and the management of natural resources and ecosystems. Part 4 (Policy Instruments for Road Transportation) describes the policy experience in areas such as road pricing, fuel taxation and vehicle standards. In Part 5 (Policy Instruments for Industrial Pollution) the attention is turned to a “classic” area for environmental policy. The examples from both developed and developing countries are numerous. Policies for natural resource management is the focus of Part 6 (Policy Instruments for the Management of Natural Resources and Ecosystems), which deals with water, waste, fisheries, agriculture, forestry and ecosystems. Readers of JFE are perhaps most interested in the chapter on forestry (Chapter 30), and I would have to argue that this chapter is rather short, although that cannot be regarded as a major shortcoming of the book as a whole. However, a reader with a deeper interest in forest policy might want to complement with the book by Boyd & Hyde (1989).What then can be said about the usefulness of the book for its intended audiences? Well, for at least one of the intended audiences, analysts who advice policy makers, this book is simply indispensable. It is also very useful as a reference text for researchers who specialize in environmental policy. I would perhaps not suggest this book as a textbook for undergraduate students, partly because of its sheer size and partly because the wealth of examples diverts attention from the need for undergraduates to focus on basic economic principles. It's better suited for graduate students, but then I would supplement it with a more technical volume, such as the book by Baumol & Oates. Overall, my impression is that the main field of application of the book is as a reference text on environmental policy instruments, and it should be of particular interest for people in developing countries and former planned economies. For the forest economist interested in forest policy the forest chapter feels somewhat like an appetizer, but the book gives a good opportunity to learn about policy instruments applied to other areas that could be applicable to forest related problems. Put simply, a good source of inspiration.Göran BostedtDeptartment of Forest EconomicsSwedish University of Agricultural SciencesUmeå