Risk Perceptions, Preferences and the Adoption Dynamics of Pesticide-Free Production
By: Garcia, Viviana; Mhring, Niklas; Wang, Yanbing; Finger, Robert
Garcia, Viviana; Mhring, Niklas; Wang, Yanbing; Finger, Robert, Risk Perceptions, Preferences and the Adoption Dynamics of Pesticide-Free Production, Journal of Agricultural and Resource Economics, Volume 49, Issue 1, January 2024, Pages 102-123
We study the adoption of a new pesticide-free wheat production system in Switzerland. Large-scale transitions to such production systems have implications for the entire agricultural and food sector. Using survey data from 1,073 Swiss wheat producers, we empirically test whether risk preferences and risk perceptions in four domains relate to farmersÕ decisions whether and when to adopt pesticide-free production. We observe heterogeneity in farmersÕ risk perceptions (e.g., early versus late adopter) and find that farmersÕ risk preferencesÑas well as their perceptions of production and institutional riskÑare related to adoption behavior rather than to perceived market and investment risks.