Farmers’ willingness to pay for improved agricultural technologies: Evidence from a field experiment in Tanzania
Initiatives on the sustainable intensification of agriculture have introduced improved technologies tailored to farmers’ local conditions by trial demonstration with free provision of improved seeds and fertilizers. It is not clear, though, whether smallholder farmers would be willing to pay for the...
| Main Authors: | , , |
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| Format: | Journal Article |
| Language: | Inglés |
| Published: |
MDPI
2020
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/113064 |
| _version_ | 1855523426506113024 |
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| author | Shee, Apurba Azzarri, Carlo Haile, Beliyou |
| author_browse | Azzarri, Carlo Haile, Beliyou Shee, Apurba |
| author_facet | Shee, Apurba Azzarri, Carlo Haile, Beliyou |
| author_sort | Shee, Apurba |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Initiatives on the sustainable intensification of agriculture have introduced improved technologies tailored to farmers’ local conditions by trial demonstration with free provision of improved seeds and fertilizers. It is not clear, though, whether smallholder farmers would be willing to pay for these technologies, and what factors determine their informed demand. Using a contingent valuation experiment, combined with information at baseline among 400 households in Northern Tanzania, this study measured farmers’ willingness to pay (WTP) for hybrid maize seed and local inorganic fertilizer. Farmers’ WTP was estimated using a dichotomous contingent valuation with follow-up model. Results showed that the average WTP was 61% higher for hybrid maize seed, and 15% lower for inorganic fertilizer, than their respective average local market prices during the reference period, suggesting that farmers were willing to pay a premium for hybrid maize seed, while they did not seem to be interested in fertilizer purchase at current market price. Moreover, since improved access to extension services was found to positively affect farmers’ WTP, strengthening extension services could be a suitable policy intervention to increase farmers’ demand for improved technologies. On the other hand, farmers’ risk aversion was negatively correlated with WTP for both technologies. This result suggests that encouraging risk reduction options, such as agricultural insurance, could be a useful policy strategy for boosting farmers’ demand for improved agricultural technologies. |
| format | Journal Article |
| id | CGSpace113064 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2020 |
| publishDateRange | 2020 |
| publishDateSort | 2020 |
| publisher | MDPI |
| publisherStr | MDPI |
| record_format | dspace |
| spelling | CGSpace1130642025-08-15T13:21:46Z Farmers’ willingness to pay for improved agricultural technologies: Evidence from a field experiment in Tanzania Shee, Apurba Azzarri, Carlo Haile, Beliyou risk reduction risk management contingent valuation willingness to pay seed fertilizers agricultural extension farmers technology innovation systems agriculture sustainable intensification intensification fertilizer technology farming systems seed technology Initiatives on the sustainable intensification of agriculture have introduced improved technologies tailored to farmers’ local conditions by trial demonstration with free provision of improved seeds and fertilizers. It is not clear, though, whether smallholder farmers would be willing to pay for these technologies, and what factors determine their informed demand. Using a contingent valuation experiment, combined with information at baseline among 400 households in Northern Tanzania, this study measured farmers’ willingness to pay (WTP) for hybrid maize seed and local inorganic fertilizer. Farmers’ WTP was estimated using a dichotomous contingent valuation with follow-up model. Results showed that the average WTP was 61% higher for hybrid maize seed, and 15% lower for inorganic fertilizer, than their respective average local market prices during the reference period, suggesting that farmers were willing to pay a premium for hybrid maize seed, while they did not seem to be interested in fertilizer purchase at current market price. Moreover, since improved access to extension services was found to positively affect farmers’ WTP, strengthening extension services could be a suitable policy intervention to increase farmers’ demand for improved technologies. On the other hand, farmers’ risk aversion was negatively correlated with WTP for both technologies. This result suggests that encouraging risk reduction options, such as agricultural insurance, could be a useful policy strategy for boosting farmers’ demand for improved agricultural technologies. 2020-01-01 2021-03-22T14:23:01Z 2021-03-22T14:23:01Z Journal Article https://hdl.handle.net/10568/113064 en https://doi.org/10.1093/erae/jbab054 Open Access MDPI Shee, A., Azzarri, C. and Haile, B. 2020. Farmers’ willingness to pay for improved agricultural technologies: evidence from a field experiment in Tanzania. Sustainability 12(1):216. |
| spellingShingle | risk reduction risk management contingent valuation willingness to pay seed fertilizers agricultural extension farmers technology innovation systems agriculture sustainable intensification intensification fertilizer technology farming systems seed technology Shee, Apurba Azzarri, Carlo Haile, Beliyou Farmers’ willingness to pay for improved agricultural technologies: Evidence from a field experiment in Tanzania |
| title | Farmers’ willingness to pay for improved agricultural technologies: Evidence from a field experiment in Tanzania |
| title_full | Farmers’ willingness to pay for improved agricultural technologies: Evidence from a field experiment in Tanzania |
| title_fullStr | Farmers’ willingness to pay for improved agricultural technologies: Evidence from a field experiment in Tanzania |
| title_full_unstemmed | Farmers’ willingness to pay for improved agricultural technologies: Evidence from a field experiment in Tanzania |
| title_short | Farmers’ willingness to pay for improved agricultural technologies: Evidence from a field experiment in Tanzania |
| title_sort | farmers willingness to pay for improved agricultural technologies evidence from a field experiment in tanzania |
| topic | risk reduction risk management contingent valuation willingness to pay seed fertilizers agricultural extension farmers technology innovation systems agriculture sustainable intensification intensification fertilizer technology farming systems seed technology |
| url | https://hdl.handle.net/10568/113064 |
| work_keys_str_mv | AT sheeapurba farmerswillingnesstopayforimprovedagriculturaltechnologiesevidencefromafieldexperimentintanzania AT azzarricarlo farmerswillingnesstopayforimprovedagriculturaltechnologiesevidencefromafieldexperimentintanzania AT hailebeliyou farmerswillingnesstopayforimprovedagriculturaltechnologiesevidencefromafieldexperimentintanzania |