Microeconomics of Technology Adoption

Social Capital and Adoption of Alternative Conservation Agricultural Practices in South-Western Nigeria

The major concern of most African countries, including Nigeria, in recent times is how to increase food production because of food insecurity issues, which by extension, is a major contributing factor to the prevalence of poverty. Therefore, adoption of conservation agricultural practices is regarded as a pathway to drive the achievement of food and nutrition security, as well as the needed optimal performance in the agri-food sector. Reportedly, scaling up of the limited adoption of these practices could be facilitated through kinship ties, peer influence, and social networks that govern mutual interactions among individuals; therefore, this motivated the study. Using cross-sectional data obtained from 350 sample units selected from South-Western Nigeria through a multistage sampling technique, this study applied descriptive statistical tools and cross-tabulation techniques to profile the sampled subjects while count outcome models were used to investigate the factors driving counts of conservative agriculture (CA) adoption. Similarly, a marginal treatment effects (MTEs) model (parametric approach) using local IV estimator was applied to examine the effects of CA adoption on the outcome (log of farmers’ farm income). Additionally, appropriate measures of fit tests statistics were used to test the reliabilities of the fitted models. Findings revealed that farmers’ years of farming experience (p < 0.1), frequency of extension visits (p < 0.05), and social capital viz-a-viz density of social group memberships (p < 0.05) significantly determined the count of CA practices adopted with varying degrees by smallholder farmers. Although, social capital expressed in terms of membership of occupational group and diversity of social group members also had a positive influence on the count of CA practices adopted but not significant owing largely to the “information gaps” about agricultural technologies in the study area. However, the statistical tests of the MTEs indicated that the treatment effects differed significantly across the covariates and it also varied significantly with unobserved heterogeneity. The policy relevant treatment effect estimates also revealed that different policy scenarios could increase or decrease CA adoption, depending on which individuals it induces to attract the expected spread and exposure.

Impact of adoption of drought-tolerant maize varieties on total maize production in south Eastern Zimbabwe

Drought is a huge limiting factor in maize production, mainly in the rain-fed agriculture of sub-Saharan Africa. In response to this threat, drought-tolerant (DT) maize varieties have been developed with an aim to ensure maize production under mild drought conditions. We conducted a study to assess the impact of smallholder farmers' adoption of DT maize varieties on total maize production. Data for the study came from a survey of 200 randomly sampled households in two districts of Chiredzi and Chipinge in southeastern Zimbabwe. The study found that 93% of the households were growing improved maize varieties and that 30% of the sampled households were growing DT maize varieties. Total maize yield was 436.5 kg/ha for a household that did not grow DT maize varieties and 680.5 kg/ha for households that grew DT maize varieties. We control for the endogeneity of the DT adoption variable, by using the control function approach to estimate total maize production in a Cobb-Douglas model. The results show that households that grew DT maize varieties had 617 kg/ha more maize than households that did not grow the DT maize varieties. Given that almost all farmers buy their seeds in the market, a change in varieties to DT maize seeds gives an extra income of US$240/ha or more than nine months of food at no additional cost. This has huge implications in curbing food insecurity and simultaneously saving huge amounts of resources at the household and national levels, which are used to buy extra food during the lean season.

A recipe for success? Learning from the rapid adoption of improved chickpea varieties in Ethiopia

Many studies detail constraints deemed responsible for the limited adoption of new technologies among smallholder farmers in sub-Saharan Africa. By contrast, here we study the conditions that led to the remarkably fast spread of improved chickpea varieties in Ethiopia. Within just seven years, the adoption rate rose from 30 to 80% of the farmers. A combination of factors explains the rapid uptake. Their attraction lay in superior returns and disease resistance. Chickpea was already an important crop for rural households in the studied districts, for both cash income and consumption. Good market access and an easy accessibility of extension services advanced the adoption process. Thus, an attractive technology suitable for rural households in a conducive environment enabled adoption. Our findings prompt us to stress the importance of tailoring agricultural innovations to the realities and demands of rural households, and the need to design and deploy interventions on the basis of ex-ante knowledge on factors potentially determining their success or failure.

Making Virtue Out of Necessity: Managing the Citrus Waste Supply Chain for Bioeconomy Applications

The efficient use of agricultural wastes and by-products, which essentially transforms waste materials into value-added products, is considered as pivotal for an effective bioeconomy strategy for the rural development. Within this scope, citrus waste management represents a major issue for citrus processors. However, it also represents a potentially unexploited resource for rural sustainable development. This study focuses on analyzing the current management of citrus waste in South Italy, and on identifying the determinants and barriers that may affect an entrepreneur’s choice in the destination of citrus waste. This study investigates the preferences of citrus processors regarding the contract characteristics necessary to take part in a co-investment scheme. Both analyses are preliminary steps in designing an innovative and sustainable citrus by-product supply chain. Results show that the distance between the citrus processors and the citrus by-products plant is one of the main criteria for choosing alternative valorization pathways. Moreover, guaranteed capital, a short duration of the contract, and reduced risk are contract scheme characteristics that improve entrepreneurs’ willingness to co-invest in the development of a citrus waste multifunctional plant. The overall applied approach can be extended to other contexts for designing new and innovative by-product supply chains, thereby enhancing the implementation of bioeconomy strategies.

Adoption of Sustainable Agriculture Practices among Farmers in Kentucky, USA

Promoting the sustainable agricultural practices at an individual farm level is essential to ensure agricultural sustainability. This study analyzed whether and how various factors related to farm or farmers' characteristics influence the adoption intensity of sustainable agriculture practices. We used a negative binomial regression model to fit the data collected from a mail survey of farmers in Kentucky, USA. Our results showed that the adoption intensity of sustainable agriculture practices varied significantly among agricultural districts in Kentucky. Farmers who grew row crops, had irrigation facilities, and were in favor of crop diversification were significantly more likely than their respective counterparts to adopt more sustainable agriculture practices. Similarly, having a college education and participating in the Tobacco Buyout Program also positively and significantly affected the intensity of adopting sustainable agriculture practices among Kentucky farmers. In contrast, a lack of adequate knowledge about sustainable farming and an unfamiliarity with technology significantly and negatively related to less adoption of sustainable agriculture practices.

Investigating Key Factors Influencing Farming Decisions Based on Soil Testing and Fertilizer Recommendation Facilities (STFRF)—A Case Study on Rural Bangladesh

Proper nourishment is fundamental for satisfactory crop growth and production. However, for efficient crop production, it is important to understand the soil environment, to recognize the limitations of that environment, and to ameliorate them where possible without damaging the soil quality. Soil testing and fertilizer recommendation facilities (STFRF) can help farmers to achieve environmental and economic sustainability by assisting them in recognizing their soil condition, reducing agrochemicals usage, using an appropriate amount of fertilizer, minimizing input costs, and achieving higher yield. These facilities are not new in the context of Bangladesh, yet the adoption rate among farmers is low and its determinants have rarely been empirically tested based on microlevel data. Therefore, this study examined those factors underlying the adoption of soil testing and fertilizer recommendation facilities using field surveyed data of 176 individual farmers. Our evidence shows that young farmers with less farming experience are more likely to adopt these facilities. Additionally, being small-scale farmers, having higher education, having more farming income, and having more knowledge about these facilities and the fees of these facilities were found to have a significant effect on the adoption. On the other hand, gender, land ownership, and secondary income were found to be insignificant with regard to the adoption of soil testing and fertilizer recommendation facilities. Our results also revealed that most adopter farmers not only focused on profitability, but were additionally concerned with environmental well-being.

The impact of the use of new technologies on farmers' wheat yield in Ethiopia: evidence from a randomized control trial

In 2013, Ethiopia's Agricultural Transformation Agency introduced the Wheat Initiative to increase smallholder productivity. In this article, we measure the impacts of the Wheat Initiative package of technologies, and its marketing assistance component alone, on yields among a promotional group of farmers. The package includes improved techniques, improved inputs, and a guaranteed market for the crop. Relying on crop-cut measures and farmers' own assessments, we find that full package led to an average 14% higher yields. Implementation of the Wheat Initiative was successful in making certified seed and fertilizer accessible to farmers and increasing their uptake, though only 61% of the intervention group adopted row planting and few farmers received marketing assistance. The measured yield difference may underestimate the true yield difference associated with the technology because of incomplete adoption of the recommended practices by intervention farmers and adoption of some practices by control farmers.

Policy distortions, farm size, and the overuse of agricultural chemicals in China

Overuse of agricultural chemicals has resulted in enormous damages to environmental quality and human health in China. Reducing the use of agricultural chemicals to an optimal level is a crucial challenge for the sustainable development of agriculture. We demonstrate that small farm size (in China, typically ∼0.1 ha for each parcel) is strongly related to overuse of agricultural chemicals. Farm size increases with economic development in many other countries, but this is not observed in China due to national policies. Increasing farm size by removing policy distortions would substantially decrease both the use of agricultural chemicals and their environmental impact, while increasing rural income in China.

Understanding the reasons for overuse of agricultural chemicals is critical to the sustainable development of Chinese agriculture. Using a nationally representative rural household survey from China, we found that farm size is a strong factor that affects the use intensity of agricultural chemicals across farms in China. Statistically, a 1% increase in farm size is associated with a 0.3% and 0.5% decrease in fertilizer and pesticide use per hectare (P < 0.001), respectively, and an almost 1% increase in agricultural labor productivity, while it only leads to a statistically insignificant 0.02% decrease in crop yields. The same pattern was also found using other independently collected data sources from China and an international panel analysis of 74 countries from the 1960s to the 2000s. While economic growth has been associated with increasing farm size in many other countries, in China this relationship has been distorted by land and migration policies, leading to the persistence of small farm size in China. Removing these distortions would decrease agricultural chemical use by 30–50% and the environmental impact of those chemicals by 50% while doubling the total income of all farmers including those who move to urban areas. Removing policy distortions is also likely to complement other remedies to the overuse problem, such as easing farmer’s access to modern technologies and knowledge, and improving environmental regulation and enforcement.

Receptiveness to advice, cognitive ability, and technology adoption☆

We construct a model of technology adoption with agents differing on two dimensions: their cognitive ability and their receptiveness to advice. While cognitive ability unambiguously speeds adoption, receptiveness to advice may speed adoption for individuals with low cognitive ability, but slow adoption for individuals with high cognitive ability. We conduct economic experiments measuring US farmers' cognitive ability and receptiveness to advice and examine how these characteristics impact their speed of adoption of genetically modified (GM) corn seeds. The empirical analysis shows that early adopters are those who are both quite able cognitively and not receptive to advice.

Designing an agricultural vegetative waste-management system under uncertain prices of treatment-technology output products

Setting up a sustainable agricultural vegetative waste-management system is a challenging investment task, particularly when markets for output products of waste-treatment technologies are not well established. We conduct an economic analysis of possible investments in treatment technologies of agricultural vegetative waste, while accounting for fluctuating output prices. Under a risk-neutral approach, we find the range of output-product prices within which each considered technology becomes most profitable, using average final prices as the exclusive factor. Under a risk-averse perspective, we rank the treatment technologies based on their computed certainty-equivalent profits as functions of the coefficient of variation of the technologies' output prices. We find the ranking of treatment technologies based on average prices to be robust to output-price fluctuations provided that the coefficient of variation of the output prices is below about 0.4, that is, approximately twice as high as that of well-established recycled-material markets such as glass, paper and plastic. We discuss some policy implications that arise from our analysis regarding vegetative waste management and its associated risks.

Biofortification, Crop Adoption and Health Information: Impact Pathways in Mozambique and Uganda

Biofortification is a promising strategy to combat micronutrient malnutrition by promoting the adoption of staple food crops bred to be dense sources of specific micronutrients. Research on biofortified orange-fleshed sweet potato (OFSP) has shown that the crop improves the vitamin A status of children who consume as little as 100 grams per day, and intensive promotion strategies improve dietary intakes of vitamin A in field experiments. However, little is known about OFSP adoption behavior, or about the role that nutrition information plays in promoting adoption and changing diet. We report evidence from similar randomized field experiments conducted in Mozambique and Uganda to promote OFSP. We further use causal mediation analysis to study impact pathways for adoption and dietary intakes. Despite different agronomic conditions and sweet potato cropping patterns across the two countries, the project had similar impacts, leading to adoption by 61% to 68% of farmers exposed to the project, and doubling vitamin A intakes in children. In both countries, two intervention models that differed in training intensity and cost had comparable impacts relative to the control group. The project increased the knowledge of key nutrition messages; however, added knowledge of nutrition messages appears to have minimally affected adoption, conditional on assumptions required for causal mediation analysis. Increased vitamin A intakes were largely explained by adoption and not by nutrition knowledge gained, though in Uganda a large share of impacts on vitamin A intakes cannot be explained by mediating variables. Similar impacts could likely have been achieved by reducing the scope of nutrition trainings. JEL codes: I15, O12, O13, Q12.

The impact of a mosquito net voucher subsidy programme on incremental ownership: The case of the Tanzania National Voucher Scheme

The subsidisation of mosquito nets has been widely used to increase ownership in countries where malaria represents a public health problem. However, an important question that has not been addressed empirically is how far net subsidy programmes increase ownership above the level that would have prevailed in the absence of the subsidy (i.e., incremental ownership). This study addresses that gap by investigating the impact of a large-scale mosquito net voucher subsidy--the Tanzania National Voucher Scheme (TNVS)--on short-term demand for unsubsidised commercial nets, estimating a household demand model with nationally representative household survey data. The results suggest that, despite the TNVS using a categorical targeting approach that did not discriminate by wealth, it still led to a large increase in incremental ownership of mosquito nets, with limited evidence of displacement of unsubsidised sales. Although no evidence is found of an additional TNVS voucher decreasing the number of unsubsidised sales in the same period, results indicate that an additional TNVS voucher reduced the probability of purchasing any unsubsidised net in the same period by 14%. The findings also highlight the critical role played by social learning or campaign messaging in increasing mosquito net ownership.

Farm family effects of adopting improved and hybrid sorghum seed in the Sudan Savanna of West Africa

Uptake of improved sorghum varieties in the Sudan Savanna of West Africa has been limited, despite the economic importance of the crop and long-term investments in sorghum improvement. One reason why is that attaining substantial yield advantages has been difficult in this harsh, heterogeneous growing environment. Release in Mali of the first sorghum hybrids in Sub-Saharan Africa that have been developed primarily from local germplasm has the potential to change this situation. Utilizing plot data collected in Mali, we explain the adoption of improved seed with an ordered logit model and apply a multivalued treatment effects model to measure impacts on farm families, differentiating between improved varieties and hybrids. Since farm families both consume and sell their sorghum, we consider effects on consumption patterns as well as productivity. Status within the household, conferred by gender combined with marital status, generation, and education, is strongly related to the improvement status of sorghum seed planted in these extended family households. Effects of hybrid use on yields are large, widening the range of food items consumed, reducing the share of sorghum in food purchases, and contributing to a greater share of the sorghum harvest sold. Use of improved seed appears to be associated with a shift toward consumption of other cereals, and also to greater sales shares. Findings support on-farm research concerning yield advantages, also suggesting that the use of well-adapted sorghum hybrids could contribute to diet diversification and the crop's commercialization by smallholders.

Effects of successful adoption of information technology enabled services in proposed smart cities of India

Purpose

The purpose of this paper is to understand the effects of successful adoption of information technology (IT)-enabled services to be provided in the proposed smart cities of India from end-user-experience perspective.

Design/methodology/approach

This paper has taken a sincere endeavor to understand to what extent the success of the smart cities depends on the users’ experience of the IT-enabled services, the backbone of smart cities, and how using IT-enabled services can improve the quality of the users’ lifestyle. Initially, few hypotheses have been developed from literature review, followed by structured questionnaires. Once the data were collected, they were analyzed using different statistical tools. This paper will be useful for the policymakers, specifically those who are involved in technology and IT-governance-related areas, in policymaking for the proposed smart cities in India.

Findings

This study tries to find how the IT-enabled services would transform the lives of residents both socially and technologically; to what extent the prospective citizens will be engaged to use the modern services; to what extent the threat of privacy and security issues affects the overall performance of the proposed smart cities of India; and how gaining trust of the citizens could help in successful adoption of IT services. This paper tries to find out few of these questions from the city residents’ perspective.

Research limitations/implications

This study is undertaken keeping Indian smart cities in perspective. However, in India, the proposed smart cities are in different states. In fact, the respondents selected by the authors are not the true representatives of the whole population, which is spread covering all parts of India. This paper could have implications for policymakers in drafting the smart city policy in India especially from IT-governance and user-experience perspective.

Practical implications

As this study discusses proposed smart cities of India from IT-enabled services and from the citizens’ perspective, it will have a huge practical implication once these smart cities become operational in India.

Social implications

This study discusses the IT-enabled services expected to be provided to the citizens of the proposed smart cities of India. As the paper discusses about the citizens’ perspective and the proposed smart cities of India, it definitely has social implications especially since the study is related to the citizens of proposed smart cities of India.

Originality/value

The research reported in this manuscript is the outcome of in-depth study on proposed Indian smart cities especially from IT adoption and from users’ perspective. Very few studies have been carried out on proposed Indian smart cities from IT adoption perspective and how that could improve the lifestyle of the residents.

Social epidemiology of hypertension in Buffalo City Metropolitan Municipality (BCMM): cross-sectional study of determinants of prevalence, awareness, treatment and control among South African adults

OBJECTIVES

This study examined hypertension prevalence, awareness, treatment and control and their determinants among adults attending health facilities in Buffalo City Metropolitan Municipality (BCMM) in the Eastern Cape.

DESIGN

A cross-sectional analytical study.

SETTINGS

The three largest outpatient clinics in BCMM.

PARTICIPANTS

Ambulatory adults (aged 18 years and over) attending the study settings during the study period (n=998).

PRIMARY OUTCOME MEASURE

The prevalence of hypertension (systolic blood pressure (BP) of ≥140 mm Hg and/or a diastolic BP of ≥90 mm Hg or current medication for hypertension), the awareness of it (prior diagnosis of it) and its treatment and control (Eighth Joint National Committee Criteria of BP <140/90/90 mm Hg).

SECONDARY OUTCOME MEASURE

Associated factors of hypertension, hypertension unawareness and uncontrolled hypertension.

RESULTS

Of the 998 participants included, the prevalence of hypertension was 49.2%. Hypertension unawareness was reported by 152 participants (23.1%) with significant gender difference (p=0.005). Male sex, age <45 years, higher level of education, single status, current employment, higher monthly income, current smoking, alcohol usage, absence of diabetes and non-obese were significantly associated (p<0.05) with hypertension unawareness.Of the participants who were aware of having hypertension (n=339), nearly all (91.7%, n=311) were on antihypertensive medication and only 121 participants (38.9%) achieved the BP treatment target. In the multivariate logistic regression model analysis, ageing (95% CI 1.9 to 4.4), being married (95% CI 1.0 to 2.0), male sex (95% CI 1.2 to 2.3), concomitant diabetes (95% CI 1.9 to 3.9), lower monthly income (95% CI 1.2 to 2.2), being unemployed (95% CI 1.0 to 1.9) and central obesity (95% CI 1.5 to 2.8) were the significant and independent determinants of prevalent hypertension.

CONCLUSION

The prevalence and awareness of hypertension was high in the study population. In addition, the suboptimal control of BP among treated individuals, as well as the significant cardiovascular risk factors, warrant the attention of health authorities of BCMM and the country.

Quality Health Care and Willingness to Pay for Health Insurance Retention: A Randomized Experiment in Kolkata Slums

The low quality of health care in developing countries reduces the poor's incentives to use quality health services and their demand for health insurance. Using data from a field experiment in India, I show that randomly offering insurance policyholders a free preventive checkup with a qualified doctor has a twofold effect: receiving this additional benefit raises willingness to pay to renew health insurance by 53%, doubling the likelihood of hypothetical renewal; exposed individuals are 10 percentage points more likely to consult a qualified practitioner when ill after the checkup. Both effects are concentrated on poorer households. There is no effect on health knowledge and healthcare spending. This suggests that exposing insured households to quality preventive care can be a cost-effective way of raising the demand for quality health care and retaining policyholders in the insurance scheme. Copyright © 2016 John Wiley & Sons, Ltd.

How Does Gender Affect Sustainable Intensification of Cereal Production in the West African Sahel? Evidence from Burkina Faso

Better understanding of gender differences in the adoption of agricultural intensification strategies is crucial for designing effective policies to close the gender gap while sustainably enhancing farm productivity. We examine gender differences in adoption rates, likelihood and determinants of adopting strategy sets that enhance yields, protect crops, and restore soils in the West African Sahel, based on analysis of cereal production in Burkina Faso. Applying a multivariate probit model to a nationally representative household panel, we exploit the individual plot as unit of analysis and control for plot manager characteristics along with other covariates. Reflecting the socio-cultural context of farming combined with the economic attributes of inputs, we find that female managers of individual cereal fields are less likely than their male counterparts to adopt yield-enhancing and soil-restoring strategies, although no differential is apparent for yield-protecting strategies. More broadly, gender-disaggregated regressions demonstrate that adoption determinants differ by gender. Plot manager characteristics, including age, marital status, and access to credit or extension services do influence adoption decisions. Furthermore, household resources influence the probability of adopting intensification strategy sets differently by gender of the plot manager. Variables expressing the availability of household labor strongly influence the adoption of soil-restoring strategies by female plot managers. By contrast, household resources such as extent of livestock owned, value of non-farm income, and area planted to cotton affect the adoption choices of male plot managers. Rectifying the male bias in extension services along with improving access to credit, income, and equipment to female plot managers could contribute to sustainable agricultural intensification.

Welfare impacts of improved chickpea adoption: A pathway for rural development in Ethiopia?

We analyse the impact of improved chickpea adoption on welfare in Ethiopia using three rounds of panel data. First, we estimate the determinants of improved chickpea adoption using a double hurdle model. We apply a control function approach with correlated random effects to control for possible endogeneity resulting from access to improved seed and technology transfer activities. To instrument for these variables we develop novel distance weighted measures of a household's neighbours' access to improved seed and technology transfer activities. Second, we estimate the impact of area under improved chickpea cultivation on household income and poverty. We apply a fixed effects instrumental variables approach where we use the predicted area under cultivation from the double hurdle model as an instrument for observed area under cultivation. We find that improved chickpea adoption significantly increases household income while also reducing household poverty. Finally, we disaggregate results by landholding to explore whether the impact of adoption has heterogeneous effects. Adoption favoured all but the largest landholders, for who the new technology did not have a significant impact on income. Overall, increasing access to improved chickpea appears a promising pathway for rural development in Ethiopia's chickpea growing regions.

SHORT-RUN SUBSIDIES AND LONG-RUN ADOPTION OF NEW HEALTH PRODUCTS: EVIDENCE FROM A FIELD EXPERIMENT

Short-run subsidies for health products are common in poor countries. How do they affect long-run adoption? A common fear among development practitioners is that one-off subsidies may negatively affect long-run adoption through reference-dependence: People might anchor around the subsidized price and be unwilling to pay more for the product later. But for experience goods, one-off subsidies could also boost long-run adoption through learning. This paper uses data from a two-stage randomized pricing experiment in Kenya to estimate the relative importance of these effects for a new, improved antimalarial bed net. Reduced form estimates show that a one-time subsidy has a positive impact on willingness to pay a year later inherit. To separately identify the learning and anchoring effects, we estimate a parsimonious experience-good model. Estimation results show a large, positive learning effect but no anchoring. We black then discuss the types of products and the contexts inherit for which these results may apply.