[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/ags/iaae18/277421.html
   My bibliography  Save this paper

Risk, risk aversion and agricultural technology adoption a combination of real options and stochastic dominance

Author

Listed:
  • Spiegel, A.
  • Britz, W.
  • Finger, R.
Abstract
We propose a novel approach to capture risk and risk aversion for agricultural technology adoption by integrating second order stochastic dominance in a farm-level model based on real options. We employ an illustrative case study of perennial energy crop adoption. In our example, we found that risk aversion leads to smaller and earlier adoption of a new technology; in contrast, higher subjective riskiness increases expected scale and first slow down and then accelerate adoption. Those effects would have been obscured if technology adoption would have been considered as standing-alone or as now-or-never decision. Acknowledgement :

Suggested Citation

  • Spiegel, A. & Britz, W. & Finger, R., 2018. "Risk, risk aversion and agricultural technology adoption a combination of real options and stochastic dominance," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277421, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae18:277421
    DOI: 10.22004/ag.econ.277421
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/277421/files/315.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.277421?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
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Oyetunde-Usman, Zainab & Shee, Apurba & Abdoulaye, Tahirou, 2021. "Does Simultaneous Adoption of Drought Tolerant Maize Varieties and Organic Manure Impact Productivity and Welfare Outcomes of Farm-households in Nigeria?," 2021 Annual Meeting, August 1-3, Austin, Texas 313954, Agricultural and Applied Economics Association.
    2. Barnes, A.P. & McMillan, J. & Sutherland, L.-A. & Hopkins, J. & Thomson, S.G., 2022. "Farmer intentional pathways for net zero carbon: Exploring the lock-in effects of forestry and renewables," Land Use Policy, Elsevier, vol. 112(C).
    3. Xinyan Hu & Xiangpo Chen & Siqi Yao & Gaiqing Zhang, 2022. "The Great Chinese Famine (1959–1961) and farm households’ adoption of technology: evidence from China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 66(1), pages 93-117, January.

    More about this item

    Keywords

    Risk and Uncertainty;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:ags:iaae18:277421. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.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.