Abstract
Economic theory tells us that increases in the relative prices of natural resources should cause farmers to switch to techniques that use fewer farming resources. The adoption of resource-conserving technology is one possible response that can lead toward a more environmentally sustainable outcome. Do farmers respond to changes in natural resource prices and quality by adopting available resource-conserving technology? This article investigates a case study of decisions made by Tunisian farmers as to whether or not they should invest in water-conserving drip-irrigation technology as a function of natural resource prices and quality along with farm and farmer characteristics. In contrast to many studies of technology adoption this work uses both the standard revealed preference analysis of who adopts and a direct elicitation of the reasons for adoption or nonadoption by farmers. By reviving an ancient methodology—the direct question—to elicit real preferences from farmers the research goes beyond the restrictive assumptions of the commonly used random utility models. The combination of these techniques allows triangulation on the causes of technology adoption and helps insure that the results are more than a statistical artifact. (excerpt)
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