Ambiguity preference, social learning and adoption of soil testing and formula fertilization technology

Abstract

This paper explores the impact of ambiguity preference and social learning on farmers' new technology adoption. The results show that (1) Ambiguity preference has a significant impact on farmers adoption of soil testing and formula fertilization technology, and the influence of ambiguity preference on soil testing technology adoption is more significant than on formula fertilization technology. (2) The impacts of social learning on farmers' adoption of soil testing technology and formula fertilization technology are significantly positive. (3) The adoption possibility of soil testing and formula fertilization technology demonstrates heterogeneity in different levels of farmers' cognitive abilities and ages, which indicates that ambiguity preference and social learning could positively promote farmers' soil testing and formula fertilization technology adoption, and the impact of social learning in elder farmers are more obvious. Overall, this research provides a micro foundation and policy recommendations for household soil testing and formula fertilization technology promotion in rural China and sheds light upon how the government can formulate relevant policies to promote green environmental development.