Abstract
Many agricultural and environmental technologies require large upfront investments in exchange for longer-term benefits. This time profile of costs and benefits makes adoption particularly sensitive to liquidity and credit constraints, which are prevalent in low-income settings. We test the importance of these barriers to the adoption of an agricultural technique that helps reduce land degradation and restore soil fertility in Niger. We find little evidence that liquidity or credit constraints deter adoption: instead, providing farmers with training increases the share of adopters by over 90 percentage points, whereas adding conditional or unconditional cash transfers has no additional effect. Adoption increases agricultural output, reduces land turnover and leads to adoption spillovers up to three years after treatment. These results imply that training can be a cost-effective and scalable means of promoting the adoption of profitable technologies.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.