[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/zbw/espost/235857.html
   My bibliography  Save this article

The effects of mental budgeting on the intentions to switch to low-toxicity pesticides: Evidence from vegetable farmers in Sichuan, China

Author

Listed:
  • Zeng, Yangyi
  • Herzfeld, Thomas
Abstract
Purpose: Mental budgeting, as a part of mental accounting theory, is expected to impact a household's budgetary management in terms of expenses. The purpose of this paper is to study whether and how mental budgeting can explain differences in farmers' reactions to different incentives of low-toxicity pesticide use. Design/methodology/approach: Based on data from a survey of 393 vegetable farmers in the Sichuan Province, this analysis, using a Likert Scale approach, first explores whether farmers utilize mental budgeting. Secondly, using a Probit model, this paper analyzes how mental budgeting affects farmers' intentions to switch to low-toxicity pesticide use when faced with different incentives. Findings: The results show that the majority of farmers categorize agricultural inputs into different groups and that 26.46% of the investigated farmers utilize mental budgeting for pest control practices. In addition, farmers who utilizing mental budgeting report a higher willingness to switch to low-toxicity pesticides when they're presented with a specific subsidy. Furthermore, if offered a price premium for quality, the willingness to switch to low-toxicity pesticides for farmers utilizing mentally budget is lower compared to other farmers. Originality/value: This paper examines the existence of mental budgeting among farmers. It provides a better understanding of how farmers categorize agricultural inputs and their mental mechanisms with respect to agricultural expenses. Finally, this paper is the first to study the effects of mental budgeting on farmers' reactions to different incentives aimed at stimulating the adoption of low-toxicity pesticides.

Suggested Citation

  • Zeng, Yangyi & Herzfeld, Thomas, 2021. "The effects of mental budgeting on the intentions to switch to low-toxicity pesticides: Evidence from vegetable farmers in Sichuan, China," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 13(3).
    • Handle: RePEc:zbw:espost:235857
    DOI: 10.1108/CAER-08-2020-0191
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/235857/1/Zeng_2021_effects_mental_budgeting.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.1108/CAER-08-2020-0191?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Clot, Sophie & Andriamahefazafy, Fano & Grolleau, Gilles & Ibanez, Lisette & Méral, Philippe, 2015. "Compensation and Rewards for Environmental Services (CRES) and efficient design of contracts in developing countries. Behavioral insights from a natural field experiment," Ecological Economics, Elsevier, vol. 113(C), pages 85-96.
    2. Schady, Norbert & Rosero, José, 2008. "Are cash transfers made to women spent like other sources of income?," Economics Letters, Elsevier, vol. 101(3), pages 246-248, December.
    3. Grovermann, Christian & Schreinemachers, Pepijn & Riwthong, Suthathip & Berger, Thomas, 2017. "‘Smart’ policies to reduce pesticide use and avoid income trade-offs: An agent-based model applied to Thai agriculture," Ecological Economics, Elsevier, vol. 132(C), pages 91-103.
    4. Zihan Nie & Nico Heerink & Qin Tu & Shuqin Jin, 2018. "Does certified food production reduce agrochemical use in China?," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 10(3), pages 386-405, August.
    5. KS Pietola & AO Lansink, 2001. "Farmer response to policies promoting organic farming technologies in Finland," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 28(1), pages 1-15, March.
    6. Miyata, Sachiko & Minot, Nicholas & Hu, Dinghuan, 2009. "Impact of Contract Farming on Income: Linking Small Farmers, Packers, and Supermarkets in China," World Development, Elsevier, vol. 37(11), pages 1781-1790, November.
    7. Olsen, Jerome & Kasper, Matthias & Kogler, Christoph & Muehlbacher, Stephan & Kirchler, Erich, 2019. "Mental accounting of income tax and value added tax among self-employed business owners," Journal of Economic Psychology, Elsevier, vol. 70(C), pages 125-139.
    8. Mansha Yang & Xia Zhao & Ting Meng, 2019. "What are the driving factors of pesticide overuse in vegetable production? Evidence from Chinese farmers," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 11(4), pages 672-687, July.
    9. Theodoros Skevas & Spiro E. Stefanou & Alfons Oude Lansink, 2012. "Can economic incentives encourage actual reductions in pesticide use and environmental spillovers?," Agricultural Economics, International Association of Agricultural Economists, vol. 43(3), pages 267-276, May.
    10. Huang, Jiaqi & Antonides, Gerrit & Nie, Fengying, 2020. "Is mental accounting of farm produce associated with more consumption of own-produced food?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 88(C).
    11. Ruifeng Liu & Zhifeng Gao & Rodolfo M. Nayga & Lijia Shi & Les Oxley & Hengyun Ma, 2020. "Can “green food” certification achieve both sustainable practices and economic benefits in a transitional economy? The case of kiwifruit growers in Henan Province, China," Agribusiness, John Wiley & Sons, Ltd., vol. 36(4), pages 675-692, October.
    12. Paul Thiers, 2005. "Using global organic markets to pay for ecologically based agricultural development in China," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 22(1), pages 3-15, March.
    13. Bolwig, Simon & Gibbon, Peter & Jones, Sam, 2009. "The Economics of Smallholder Organic Contract Farming in Tropical Africa," World Development, Elsevier, vol. 37(6), pages 1094-1104, June.
    14. Parthasarathy Krishnamurthy & Sonja Prokopec, 2010. "Resisting That Triple-Chocolate Cake: Mental Budgets and Self-Control," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 37(1), pages 68-79, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ma, Wanglin & Zheng, Hongyun, 2021. "Impacts of Smartphone Use on Agrochemical Use Among Wheat Farmers in China: A Heterogeneous Analysis," 2021 Conference, August 17-31, 2021, Virtual 314991, International Association of Agricultural Economists.
    2. Wollni, Meike & Andersson, Camilla, 2014. "Spatial patterns of organic agriculture adoption: Evidence from Honduras," Ecological Economics, Elsevier, vol. 97(C), pages 120-128.
    3. Briones, Roehlano M., 2015. "Small Farmers in High-Value Chains: Binding or Relaxing Constraints to Inclusive Growth?," World Development, Elsevier, vol. 72(C), pages 43-52.
    4. Herrmann, Raoul T., 2017. "Large-Scale Agricultural Investments and Smallholder Welfare: A Comparison of Wage Labor and Outgrower Channels in Tanzania," World Development, Elsevier, vol. 90(C), pages 294-310.
    5. Christin Schipmann & Matin Qaim, 2010. "Spillovers from modern supply chains to traditional markets: product innovation and adoption by smallholders," Agricultural Economics, International Association of Agricultural Economists, vol. 41(3‐4), pages 361-371, May.
    6. Wanglin Ma & Hongyun Zheng, 2022. "Heterogeneous impacts of information technology adoption on pesticide and fertiliser expenditures: Evidence from wheat farmers in China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 66(1), pages 72-92, January.
    7. Maertens, Miet & Vande Velde, Katrien, 2017. "Contract-farming in Staple Food Chains: The Case of Rice in Benin," World Development, Elsevier, vol. 95(C), pages 73-87.
    8. Khan, Muhammad Fawad & Nakano, Yuko & Kurosaki, Takashi, 2019. "Impact of contract farming on land productivity and income of maize and potato growers in Pakistan," Food Policy, Elsevier, vol. 85(C), pages 28-39.
    9. Neda Trifković, 2014. "Governance Strategies and Welfare Effects: Vertical Integration and Contracts in the Catfish Sector in Vietnam," Journal of Development Studies, Taylor & Francis Journals, vol. 50(7), pages 949-961, July.
    10. Kleemann, Linda, 2016. "The relevance of business practices in linking smallholders and large agro-businesses in Sub-Sahara Africa," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(4), August.
    11. Schoneveld, George C. & Weng, Xiaoxue, 2023. "Smallholder value creation in agrifood chains: Value network approach," Land Use Policy, Elsevier, vol. 131(C).
    12. Rao, Elizaphan J.O. & Qaim, Matin, 2010. "Supermarkets, farm household income and poverty: Insights from Kenya," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 95771, African Association of Agricultural Economists (AAAE).
    13. Oelofse, Myles & Høgh-Jensen, Henning & Abreu, Lucimar S. & Almeida, Gustavo F. & Hui, Qiao Yu & Sultan, Tursinbek & de Neergaard, Andreas, 2010. "Certified organic agriculture in China and Brazil: Market accessibility and outcomes following adoption," Ecological Economics, Elsevier, vol. 69(9), pages 1785-1793, July.
    14. Hisatoshi Hoken & Qun Su, 2018. "Measuring the effect of agricultural cooperatives on household income: Case study of a rice‐producing cooperative in China," Agribusiness, John Wiley & Sons, Ltd., vol. 34(4), pages 831-846, October.
    15. Ruml, Anette & Qaim, Matin, 2020. "Effects of marketing contracts and resource-providing contracts in the African small farm sector: Insights from oil palm production in Ghana," World Development, Elsevier, vol. 136(C).
    16. Sokchea, An & Culas, Richard J., 2015. "Impact of Contract Farming with Farmer Organizations on Farmers’ Income: A Case Study of Reasmey Stung Sen Agricultural Development Cooperative in Cambodia," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 23, March.
    17. Ton, Giel & Vellema, Wytse & Desiere, Sam & Weituschat, Sophia & D’Haese, Marijke, 2016. "Effectiveness of contract farming for improving income of smallholder farmers-Preliminary results of a systematic review," 149th Seminar, October 27-28, 2016, Rennes, France 244792, European Association of Agricultural Economists.
    18. Wendimu, Mengistu Assefa & Henningsen, Arne & Gibbon, Peter, 2016. "Sugarcane Outgrowers in Ethiopia: “Forced” to Remain Poor?," World Development, Elsevier, vol. 83(C), pages 84-97.
    19. Girma, Jony & Gardebroek, Cornelis, 2015. "The impact of contracts on organic honey producers' incomes in southwestern Ethiopia," Forest Policy and Economics, Elsevier, vol. 50(C), pages 259-268.
    20. Shilei Pan & Chenhui Di & Abbas Ali Chandio & Ghulam Raza Sargani & Huaquan Zhang, 2022. "Investigating the Impact of Grain Subsidy Policy on Farmers’ Green Production Behavior: Recent Evidence from China," Agriculture, MDPI, vol. 12(8), pages 1-19, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:espost:235857. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/zbwkide.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.