New Journal Paper on climate risk and state-contingent technology adoption

The paper is published as a New Journal Paper and can be downloaded here.

Abstract of the paper
Climate risk represents an increasing threat to poor and vulnerable farmers in drought-prone areas of Africa. This study assesses the maize adoption responses of food insecure farmers in Malawi, where drought-tolerant (DT) maize was recently introduced.

A field experiment, eliciting relative risk aversion, loss aversion and subjective probability weighting parameters of farmers, is combined with a detailed farm household survey.

A state-contingent production model with cumulative prospect theory preferences is estimated. More risk-averse households were more likely to have adopted DT maize, less likely to have adopted other improved maize varieties and less likely to have dis-adopted traditional local maize (LM).

Exposure to past drought shocks stimulated adoption of DT maize and dis-adoption of LM.

Published 10. October 2016 - 9:50 - Updated 23. May 2017 - 19:11