Double-hurdle Model Research Articles

Impacts of adaptation to climate change on farmers’ food security and level of sesame production in Western Ethiopia

The existence of multiple stresses and poor adaptive capacity make Africa most susceptible to climate change. In Ethiopia the potential adverse effects of climate change on the agricultural sector, the main stay of the country’s economy, are major concerns. To ensure food security, reducing the vulnerability of agricultural systems through different feasible adaptation strategies is one of the policy options in response to climate change impact This study is a first of its kind in examining the relative effectiveness of various adaptation strategies in ensuring farmers’ food security and enhancing level of sesame production in rural area of Western Ethiopia. In addition to data obtained from meteorological stations, cross-sectional data were collected interviewing 400 farm households. Descriptive statistics, two-stage least square (2SLS) and double-hurdle (D-H) models were used to analyze the data. The results of the study indicate that households are adapting using various strategies to the looming climate change in the area. The study also indicated that, though sesame production was negatively impacted by the climate hazards, smallholders have continued its production at minimum level due mainly to its high value crop character. 2SLS estimation results revealed that rainfall and temperature variability have negative impact on household’s food security. Moreover, the result indicates effectiveness of climate adaptation strategies namely agronomic practices, irrigation and soil and water conservation in reducing climatic risks and ensuring household food security. The result also implicitly indicated that farmers continued to adapt sesame production under risk climate and it is contributing to farmers’ food security. Further, the result revealed that climate change adaptation strategies have positively impacted the level of sesame production. Consequently, policy that augments households’ climate awareness and promotes adaptation decision and strategies could help reducing risks pertaining to climate and thereby improves farmers’ food security status and production of high value export potential crop—sesame.

Preferable price to buy an electric two-wheeled vehicle for college students

This research delves into the determinants affecting Taiwanese college students’ purchasing behavior towards two-wheeled electric vehicles (ETWVs) and the financial allocation they are willing to commit. A choice experiment design was utilized, with a sample of approximately 900 college students, regular users of two-wheeled gasoline vehicles (TWGs). The students engaged in one of two choice scenarios, presented with general characteristics, operational efficiency, vehicle cost, and subsidy strategies. Subsequent to the scenarios, respondents indicated their willingness to pay (WTP) for a ETWV. ETWVs, apart from being an emerging transportation alternative, also present potential environmental and health benefits due to reduced air pollution. The dependent inverse hyperbolic sine (IHS) double-hurdle model was employed, facilitating the accommodation of heteroscedasticity and correlated normality. The outcomes suggest that purchasing behavior for ETWVs among college students is shaped by factors such as purchase subsidy, tax breaks, and ETWVs’ capability in supporting students’ external travel requirements. The average WTP for ETWVs among this demographic stands at US$ 1,410. Importantly, the dependent IHS double-hurdle model, considering heteroscedasticity, proved statistically superior to its counterparts. Insights from this research offer crucial information on the price range students are likely to accommodate for ETWVs and provide a foundation for framing incentive-driven policies to amplify ETWV adoption.

Intensity of synthetic and organic fertilizers use among Indian paddy growers: Determinants and implications for productivity and sustainability

AbstractIntroductionNitrogen use efficiency (NUE) is lower for South Asia than for most other regions of the world, and average crop NUE is on the decline in India. This inefficient use of nitrogen fertilizers has implications for agricultural productivity and environmental sustainability.Materials and MethodsUsing data from 14,669 farmers in India, this paper examined the determinants of synthetic fertilizer and manure adoption and intensity of use for rice (Oryza sativa L.) production. The latter was assessed through fertilizer expenditure rather than the traditional weight‐based method. A double hurdle model was estimated.ResultsThe study showed that farmers' decisions to adopt fertilizer or manure and the decision on use intensity were independent. Both synthetic fertilizers and manure adoption were influenced by common drivers such as access to financial resources through instruments like the Kisan Credit Card and loans, expenditure on irrigation and labour, and geographical location. In terms of barriers, the likelihood of adoption of both synthetic fertilizer and manure was lower among landowners and paddy area cultivated. The intensity of fertilizer and manure use was higher for older farmers and was positively influenced by expenditure on labour but negatively influenced by ownership of livestock. Also, synthetic fertilizers and manure use intensity were determined by regional temperature and geographical zones.ConclusionThe results of this study are useful for targeted interventions to promote sustainable fertilizer use with a focus on following recommendations in zones or among demographic groups that are currently more likely to have a high intensity of use. Similarly, the findings inform support towards increased adoption and sustainable use where fertilizer is underutilised.

Factors influencing adoption and use of Tephrosia vogelii in Malawi: Role of by-laws and other drivers

Soil nutrient deficiency poses great challenge to efforts aimed at improving agricultural productivity in Southern Africa. Agroforestry fertilizer tree technologies have potential to improve soil productivity in cropping systems. As such understanding the socio-economic and biophysical drivers in promoting adoption, and use of Tephrosia vogelii (T. vogelii) would provide requisite knowledge to stakeholders who promote integration of fertilizer tree technologies. This study conducted an analysis of effectiveness of by-laws, other socio-economic drivers, and biophysical factors in promoting the adoption and use of T. vogelii in Kasungu district in the central region of Malawi. The study used multistage sampling technique and data from 432 farmers. A Double Hurdle model was used where Probit regression and Truncated regression models were incorporated in the first and second hurdle, respectively. The study found that by-laws, seed availability, frequency of extension officer's visits before planting, technology provider and field characteristics influenced adoption and utilization intensity of T. vogelii in Kasungu district, Malawi. Awareness creation on developed by-laws and enforcement, promoted the adoption of intercropping of T. vogelii in the maize-based cropping system.

Willingness to Pay for Cattle Insurance in Nepal: A Double-Hurdle Model Perspective

Since the adoption of the Crop and Livestock Insurance Directives in 2013, the adoption of livestock insurance has gained popularity in Nepal. In the eight years since implementation, adoption rates have remained low, even with 80% government premium subsidies. This study uses a double-hurdle model for quantitative analysis and focuses on the determinants of willingness to pay (WTP) for cattle insurance. The research identifies significant factors influencing insurance adoption decision, including positive impacts from farmer’s age, education, livestock loss history, awareness of insurance, dairy farm income, number of cattle, and loan access. However, male gender, extensive cattle rearing experience, and larger households negatively affect willingness to insure. A number of factors affect premium determination, including age, size of household, livestock loss, off-farm income, number of cattle, and loan accessibility; on the other hand, factors that have a negative impact on premium levels include breed type, marital status, and revenue from dairy farms. According to the findings, the annual WTP for cattle insurance among dairy farmers varies from $48 to $71 (NRs. 6315-9341), with an average of $58 (NRs. 7631). Interestingly, the majority of farmers demonstrate their commitment to risk management by accepting premiums equal to 5% of the value of the cattle. The research contributes to understanding livestock insurance premiums in developing countries, specifically in Nepal, and suggests a scope for extending insurance programs, while also noting a gap in awareness among dairy farmers regarding government subsidy programs.

Can digital technology promote market participation among smallholder farmers?

Abstract Digital technology holds significant potential for enhancing business efficiency in agricultural marketing. However, empirical research on the use of digital technology among smallholder farmers engaged in staple crop marketing in Sub-Saharan Africa remains limited. Recognizing the pivotal role of digital technology in agriculture, this study aims to analyse and synthesize existing knowledge regarding the impact of mobile phones on market participation among smallholder farmers. Through a comprehensive analysis, we seek to provide a robust understanding that can inform policies and programs aimed at enhancing smallholder market integration. To achieve this objective, we collected cross-sectional data from 360 farmers in southeast Nigeria and implemented a double hurdle model to analyse market participation decisions and the extent of farmers’ involvement in staple crop markets. In addition to traditional econometric methods, we employed propensity score matching to further investigate the impact of mobile phone ownership on market participation. Our analysis revealed that ICT tools, particularly mobile phones and radios, significantly influence both the decision and intensity of market participation among smallholder farmers. Specifically, mobile phones were found to play a crucial role in facilitating access to market pricing information and disseminating knowledge on improved production methods. Given the volatility of farm prices, the timely dissemination of market information through mobile phones is essential for farmers to make informed decisions. With a high percentage of mobile phone ownership and substantial investments in mobile networks in Nigeria, the digitalization of extension services and marketing information delivery systems could catalyse rapid improvements in agribusiness and marketing. This shift towards digital platforms has the potential to address information asymmetry, particularly among smallholder farmers, thereby fostering greater market integration and economic empowerment within rural communities.

Value of direct seeding mulch-based cropping system to field crop farmers in Quebec

Direct seeding mulch-based cropping system (DMC) is often touted for providing diverse ecosystem services, but its implementation may impose private costs that often limit its adoption by farmers. This study uses a contingent valuation method and a double hurdle model to estimate Quebec farmers' willingness to accept (WTA) compensation for adopting DMC and to analyze the underlying factors associated with WTA. Results show that farmers would demand, on average, 161 Canadian dollars per hectare as compensation for adopting DMC. Our results also indicate that farmers are willing to convert only 25.5 % of their farm size to DMC. While the adoption of DMC is positively influenced by the ease of implementation and farmers’ perception of DMC yield, the WTA for adopting DMC increases with the perceived risk and yield, as well as farm size. Conversely, it decreases with the age of farmers and if the farmers know a DMC producer. The findings of the study suggest that compensating farmers for adopting DMC is encouraging, but compensation alone may not be sufficient to induce the conversion of entire farms to DMC. The study, therefore, calls for further research to investigate why farmers are willing to convert only a quarter of their farms to DMC.

Analyzing the determinants and extent of crop diversification among smallholder coffee farmers in Kirinyaga central and east sub-counties, Kirinyaga County, Kenya

Crop diversification is a potential strategy that farmers can employ to address household food insecurity and low farm incomes. Smallholder coffee farmers face low and insufficient levels of crop diversification in Kirinyaga East and Central Sub-Counties, Kirinyaga County, Kenya. This study examines those factors that influence household decisions to diversify crops and further attempts to analyze the factors that influence the extent to which diversification takes place among smallholder coffee farmers. The study was guided by utility theory and used a descriptive survey design. Structured questionnaires were used to collect the survey data and a sample size of 408 smallholder farmers was chosen using multistage sampling procedure. The crop diversification index was 0.390 on average. Cragg's double-hurdle model findings at the first stage of the model revealed that there was a positive and significant relationship at p < 0.05 between access to extension services (6.5%) and land size (8.8%) on the probability of the farmer participating in crop diversification. The extent of crop diversification was positively and significantly associated with land size (6.7%), where (p < 0.05), while gender (5.3%) had a negative influence. Farmers should be encouraged to diversify their crops to maximize land productivity through increased crop yields. Finally, the findings suggest that the government should allocate resources to supplement existing extension programs and policies that improve skills and knowledge of farmers concerning crop diversification.

The Impact of Herders’ Risk Attitudes on Livestock Insurance: Evidence from the Pastoral Areas of Tibetan Plateau

In the context of advancing the transformation and upgrading of grassland animal husbandry, encouraging and guiding the widespread adoption of livestock insurance plays an important role in promoting the sustainable development of the livestock industry. This paper explores the impact of herders’ attitudes and perceptions towards climate change risks on their livestock insurance strategies. Firstly, experimental economics methods are employed to measure the risk preferences of herders on the Tibetan Plateau. Secondly, a theoretical model incorporating risk preferences and insurance adoption behavior is constructed. Finally, the effects of herders’ risk preferences on insurance adoption behavior are empirically examined through double-hurdle models, instrumental variable models, and moderating effect models. The results reveal that (1) most herders on the Tibetan Plateau exhibit risk-averse characteristics. (2) The degree of risk preference has a significant negative impact on herders’ insurance adoption behavior, while the risk perception significantly positively influences insurance adoption. The results remain valid even after addressing issues of endogeneity and conducting robustness checks. (3) Livestock income plays a crucial moderating role in the mechanism through which risk attitudes affect insurance adoption behavior. (4) The impact of risk preference on insurance adoption behavior shows regional and income heterogeneity.

Household food insecurity predictors and coping strategies in Basketo Special District, Southern Ethiopia: using the double hurdle model

Household food insecurity predictors and coping strategies in Basketo Special District, Southern Ethiopia: using the double hurdle model

Determinants of urban agriculture market participation decision and intensity in eastern Ethiopia

Small-scale urban farmers' active involvement in the urban agriculture (UA) output market is one strategy to ease an urban food shortage while sustaining their livelihoods and income. Enhancing market participation and intensity requires identifying the factors that affect UA market participation. Thus, the study aimed to determine the factors influencing UA market participation decisions and intensity in Eastern Ethiopia. Using a semi-structured questionnaire, the study utilized primary data collected from 270 randomly selected urban farmers. The Double Hurdle (DH) Model was used to determine the factors influencing urban farmers' participation and intensity in the UA output market. According to the first stage DH Model results, age, education, occupation, family size, farming experience, UA-related training, dependency ratio, and market information, all had a significant impact on the decision to participate in the UA output market. The second stage DH Model of Truncated regression indicated that the intensity of UA output market participation decision was significantly affected by the education, land size, UA-related training, and market information are all important factors determine the intensity of UA output market participation. Improving the ability to use the land for UA purposes, awareness creation through short-term training, and improving information access are important recommendations to enhance UA output market participation and intensity of participation.

A study on the allocation of financial aid from OECD/DAC donors focusing on climate change adaptation using the Panel Double Hurdle Model

A study on the allocation of financial aid from OECD/DAC donors focusing on climate change adaptation using the Panel Double Hurdle Model

Perception and willingness to participate in warehouse receipt system: insights from cashew farmers in the Bono region of Ghana

PurposeThe warehouse receipt system (WRS) is critical for farmers because it addresses agricultural market inefficiencies, provides credit access, reduces postharvest losses and increases access to profitable markets. However, its use and implementation across the commodity value chain remain relatively limited in Sub-Saharan Africa, particularly among cash crop producers. This study examines cashew farmers' perceptions of WRS implementation and determinants of farmer participation.Design/methodology/approachA total of 153 cashew farmers from the Bono region of Ghana were sampled using a multistage sampling approach. Perception index analysis and Cragg's double hurdle model were used for the analysis.FindingsThe results revealed that farmers strongly perceived that WRS augmented credit and market access. In addition, farm size, household size, annual income, perception of collateral and higher selling price determined farmers' willingness to participate in WRS.Research limitations/implicationsDespite the existence of other cashew farmers in Ghana, the study was limited to cashew farmers in Bono Region.Originality/valueDespite the plethora of benefits of WRS, it is surprising that its implementation in the cashew subsector is geographically limited to East Africa. Thus, this study is the first to provide empirical evidence on the perception of WRS implementation and further examine farmers' willingness to participate in WRS in Ghana.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-12-2023-0946.

Adaptation through Climate-Smart Agriculture: Examining the Socioeconomic Factors Influencing the Willingness to Adopt Climate-Smart Agriculture among Smallholder Maize Farmers in the Limpopo Province, South Africa

Agriculture contributes to the South African economy, but this sector is highly vulnerable to climate change risks. Smallholder maize farmers are specifically susceptible to climate change impacts. The maize crop plays a crucial role in the country’s food security as is considered a staple food and feed. The study aimed at examining the socioeconomic factors influencing smallholder maize farmers’ willingness to adopt climate-smart agriculture in the Limpopo Province, South Africa. It was conducted in three different areas due to their specific agro-ecological zones. A multipurpose research design was used to gather data, and multistage random sampling was used to choose the study areas. Subsequently, 209 purposefully selected farmers were interviewed face-to-face using structured questionnaires and focus discussion groups. Descriptive results revealed that 81%, 67%, and 63% farmers in Ga-Makanye, Gabaza, and Giyani were willing to adopt CSA. Using the double-hurdle model, the t-test was significant at 1%, Prob > chi2 = 0. 0000, indicating a good model. At a 5% confidence level, education, crop diversification, and information about climate-smart agriculture (CSA) positively influenced adoption, while household size and agricultural experience negatively influenced it. It is recommended that the Department of Agriculture, Land Reform, and Rural Development provide CSA workshops and educational programs to farmers to enhance their knowledge and decision-making processes regarding adaptation strategies.

Energy Poverty and Health Expenditure: Empirical Evidence from Vietnam

Utilizing data from the 2016 Vietnam Household Living Standard Survey, we undertake an empirical investigation into the influence of energy poverty on the health expenditure of Vietnamese households. Employing a double-hurdle model, our empirical findings reveal a negative relationship between energy poverty and health expenditure. Specifically, our results indicate that for each incremental unit increase in energy poverty, there is a substantial reduction of 42.5 percentage points in the overall health expenditure of the households. Furthermore, as energy poverty deepens, we observe declines of 24.6 percentage points and 45.5 percentage points in the expenses incurred for inpatient/outpatient care and self-treatment, respectively. To validate the robustness of our results, we conduct several sensitivity analyses, including propensity score matching, double/debiased machine learning. Across all these methods, our findings consistently underscore the significant and persistent adverse impact of energy poverty on the examined outcome variables. Additionally, to examine the underlying pathways, we conduct a structural equation modeling analysis and find that the relationship between energy poverty and health expenses is mediated by household hospitalization and expenditures on essential items, such as food and daily necessities.

Land as a binding constraint to cluster-based development in Ethiopia: To cluster or not to cluster?

As one of the agglomeration models targeting cluster-based rural development, cluster farming has been promoted in Ethiopia and it is already reported to have significant welfare implications, but participation rates are not as high as expected. This study examines the role of land as a constraint to the development of cluster-based development in Ethiopia both using extensive and intensive measures of cluster farming. The study further disaggregates farm households based on their farm size to better understand potential heterogeneities in the relationship between farm size and cluster farming. The paper also documents other household socio-economic and network characteristics that may matter in cluster farming. We use a large-scale farm household data from 3,969 households coupled with some expert insights on cluster farming in Ethiopia. Households in the study areas grow major staples such as maize, wheat, teff, malt barley, and sesame in four main regions of Ethiopia. We employ a double hurdle model to examine both the decision to participate and the extent to which households participate in cluster farming. By extent of participation, we refer to the amount of land and share of land farm households contribute to cluster farming. For robustness purposes, we also estimate the Tobit and Linear Probability Models. We show a positive association between farm size and cluster farming both at the extensive and intensive margins. This relationship turns negative for large amounts of land. This shows that cluster farming increases with farm size up to a threshold beyond which it declines. We also find suggestive evidence that participation rates are lower for small-scale farms, but also declines for large-scale farms. In addition, we show that access to information and network characteristics also matter in enabling cluster farming. The findings of this study are relevant in the framework of plans to upscale the cluster-based development initiative in Ethiopia. Attention to landholding issues is key and may be an important area where policy action can be geared to boost cluster farming. Moreover, our results inform potential targeting plans that aim to increase the participation of small-scale farmers who are usually the intended targets of such programs.

A double-hurdle model estimation of adoption and intensity of use of poultry production technologies in Machakos County, Kenya

A double-hurdle model estimation of adoption and intensity of use of poultry production technologies in Machakos County, Kenya

Perceptions and Socioeconomic Status Influence Purchases of Native Plants

Plants native to the United States, defined as those being present before European settlement, have aesthetic and environmental benefits. In 2018, only 10% of plant sales were native plants, a plant category that tends to be underrepresented in many residential and commercial landscapes. Although earlier research indicated that consumers find native plants less aesthetically appealing relative to introduced species, more recent research reported a growing demand for native plants. Thus, a better understanding of consumer perceptions would facilitate their marketing. We used an online survey of 1824 participants representing five geographic regions (West, Southwest, Midwest, Southeast, and Northwest) to classify adopters based on their purchase of native plants. A double-hurdle model was used to estimate factors influencing purchasing native plants among US homeowners, and the factors influencing the amount spent on native plants in 2021. Demographically, metropolitan, college-educated, and younger participants were more likely to be native plant adopters; they also spent 80% more on plants compared with nonnative plant adopters. More native plant adopters agreed that native plants were better for the environment than exotic plants (68%), are readily available in their area (67%), and are better adapted to difficult sites (75%). Marketing efforts should capitalize on the environmental benefits to stimulate purchases.

Is Agriculture Still the Mainstay of Rural Economies? Insights from Ultra-Poor Households in North-central Nigeria

Aims: Nigeria may be facing aging and decline in the population engaged at food production nodes, posing huge challenge to agri-food systems with poverty at risk of deepening. Current trend in rural-urban migration and occupational mobility raises the open question of: “Is agriculture still a mainstay of rural economy, playing reliant roles in income and employment generation for the ultra-poor in Nigeria rurality?”. Understanding this is important because structural change to agricultural workforce in Nigeria has far-reaching implications on food security, welfare, and poverty. We sought to unfold the dynamics of agriculture as a business among ultra-poor rural households in North-Central Nigeria. First, we investigated engagements of ultra-poor rural households in agriculture. Secondly, we examined their level of commercialization. Lastly, we investigated determinants of ultra-poor’s market participation and its intensity. Study Design: This study used quantitative primary data collected in surveys and qualitative data generated from focus group discussions. Place and Duration of Study: The study was carried out in three states in North-central Nigeria viz: Kwara, Kogi, and Niger with data collected and analyzed between 2020-2022. Methodology: We randomly selected 1588 households (out of 60,427 households) from the “Single Register of the Ultra-poor” operationalized on a World-Bank-Assisted Conditional Cash Transfer (CCT) programme. We analysed data using descriptive statistics, Household Agricultural Commercialization Index, and Double-Hurdle Model. Results: Only about 18.7% of the ultra-poor households were primarily engaged in agriculture with the focus groups highlighting conflicts issues from indiscriminate grazing activities as primary reason for the abandonment. Determinants of market participation and intensification include: (-) household dependency ratio, distance to markets, (+) linkage to market agents, access to mechanization and input market, CCT-beneficiary status, and farm size (p<0.05). Conclusion: Involvement in primary agricultural production is declining in Nigeria. We recommend a boost to infrastructural development of the rurality to support agricultural transformation and attractiveness to the next wave of youths.

Stage-based Non-price Determinants of Fuel Choice and Its Consumption Decision of Households in Rural India

This article investigates non-price determinants of fuel choice and consumption decision of households in rural India. Fuel consumption varies at household levels from traditional fuels like firewood and chips to modern fuels such as LPG. Fuel consumption is based on two-stage decisions: (a) whether households participate or not; and (b) how much they consume if they participate. Significant factors might be different in the first stage and the second stage due to certain socio-economic or non-price factors. Applying Cragg’s double hurdle model on NSSO data, this article finds determinants of fuel choice and its consumption at the household level in rural India. Empirical findings indicate that income significantly determines quantity consumption, not choice decision. The role of assets in determining fuel choice and quantity decision is also considered through a comparative study including and excluding landholding, a major asset in rural India. Bottom and top quintile results suggest that advancement of the economic position of the households changes their attitude towards dirty fuel selection and consumption. Firewood fuel consumption decreases with the rising education level of the household head, especially women-headed households. Increased awareness through education and removing social barriers might help to reduce dirty fuel consumption, and India might move towards Sustainable Development Goal. JEL Codes: C20, C13, C34, O13, Q23, Q40, Q56