We propose a theoretical framework to analyze the conditions under which a farmer facing production uncertainty (due to a possible water shortage) and incomplete information, will adopt a more efficient irrigation technology. A reduced form of this model is empirically estimated using a sample of 265 farms located in Crete, Greece.The empirical results suggest that farmers choose to adopt the new technology in order to hedge against production risk. In addition, we show that the farmer's human capital also plays a significant role in the decision to adopt modern more efficient irrigation equipment.
In this article we investigate the role of information transmission in promoting agricultural technology adoption and diffusion through extension services and social learning. We develop a theoretical model of technology adoption and diffusion, which we then empirically apply, using duration analysis, on a micro-dataset of olive-producing farms from Crete, Greece. Our findings suggest that both extension services and social learning are strong determinants of technology adoption and diffusion, while the effectiveness of each of the two informational channels is enhanced by the presence of the other.
A better understanding of household water use in less developed countries (LDCs) is necessary to manage and expand water systems more effectively. Several meta-analyses have and may use more than one of several types of water sources. We describe the different modeling strategies that researchers have adopted to estimate water demand in LDCs, and discuss issues related to data collection. The findings from the literature on the main determinants of water demand in LDCs suggest that despite heterogeneity in places and time periods studied, most estimates of own price elasticity of water from private connections are in the range of -0.3 to -0.6, close to what is usually reported for industrialized countries. The empirical findings on household water source decisions are much less robust and should be a high priority for future research.
Using unique survey data of 10,000 households from 10 OECD countries, we identify the driving factors of household adoption of water-efficient equipment by estimating Probit models of a household's probability to invest in such equipment. The results indicate that the adoption of water-efficient equipment is the most strongly affected by ownership status, by being metered and charged a volumetric charge on water consumption, and by behavioural factors. Environmental attitudes are strong predictors of adoption of water-efficient equipment, with a marginal effect that exceeds ownership status in some cases. In terms of policy, we find that households that were both metered and charged for their water individually had a much higher probability to invest in water-efficient equipment compared to households that were not charged for their water.
This paper addresses the issue of price negotiation between a municipality and a private water utility operator, and its implications for residential water demand estimation. Because negotiated price may depend on municipality's specific characteristics, competing forms of price endogeneity have to be considered when using panel data. The impact of variables such as average income, housing and system features is investigated both on municipal consumption and price. We use efficient procedures to estimate a water demand equation on a panel of French municipalities. Estimated price and income elasticities are significant and close to previous, household-level studies.
Adoption of agricultural innovations has been an important factor affecting the welfare of farmers, the productivity of agriculture and the economics of the food sector. This paper reviews the literature on technology adoption in agriculture with a focus on the role of uncertainty and learning. It examines the factors affecting adoption benefits for farmers and their linkages with the innovation process. It also discusses the welfare implications of innovation and adoption for farmers and consumers.
This paper presents a model of residential water demand based on the Stone-Geary utility function, which explicitly considers a threshold of water that is insensitive to price and a quantity that can adapt instantaneously to price changes. First, the threshold is assumed constant, being then allowed to vary according to past levels of consumption, a proxy for households' water-using equipment and habits. A measure of the depreciation rate of habits is derived and the effectiveness of price and non-price conservation measures are compared. The results provide useful policy recommendations for the studied case of Seville (Spain).
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