Factors affecting farmers' adoption of and willingness to pay for biodegradable mulch films in China

Abstract

The technology of biodegradable mulch films (BDMs) is an environmentally-friendly substitute for polyethylene (PE) mulches in agricultural production. Given the technology is new to the market, it is not easy for farmers to adopt it. Additionally, farmers’ decision on BDMs adoption is a multiple-stage process. To understand the decision process, this paper employs a double hurdle model to explore the factors affecting farmers’ adoption and willingness to pay for BDMs using the sample data from China. The results show farmers follow a two-stage decision-making process, farmers have to overcome the first hurdle, i.e., adoption or non-adoption, and then decide how much they are willing to pay for BDMs. The role of technology-specific characteristics is more important than adopter-specific characteristics in the adoption of BDMs. Understanding the impact of factors on farmers’ decision-making process can assist policymakers in designing programs, specifically tackling difficulties confronting farmers at different stages of decision-making.