Investment Behavior and Energy Conservation

Abstract

Binary logit and bivariate probit models were used to investigate the investment behavior of farmers relative to two energy-conserving assets, heat-recovery systems and precoolers. The bivariate probit procedure was useful in correcting for self-selectivity bias. Holdout samples and cross-validation procedures were used to develop true model statistics. Farm size, educational level of the operator, and the type of milking system in use were the important factors influencing investment behavior.

Willingness of Farmers to Participate in Farmers' Groups

“…This understanding of the groups helps the decision of farmers to subscribe to such groups. In other studies, educational attainment was also found to influence farmers' willingness to apply best management practices (Chang and Boisvert 2005;Drost, Long and Hale 1998;Ladue, Miller and Kwiatkowski 1990;Obubuafo, Gillespie, Paudel and Kim, 2008;Paudel and Devkota, 2007). This implies that education is an important variable in the farmers' decision making process.…”

“…Jensen et al (2012) observed positive significant relationship between poultry farmers' willingness to participate in energy audit and their socio-economic characteristics. Previous studies show that farm size positively affects farmers' willingness to adopt, for example, environmentally beneficial practices (Chang and Boisvert 2005;Fernandez-Cornejo, Beach and Huang 1994;Hua, Zulauf and Sohngen 2004;Ladue, Miller and Kwiatkowski 1990;Upadhyay, Young, Wang and Wandschneider 2002). Willingness to adopt best management practices on poultry operations is positively influenced by farm income (Paudel and Devkota 2007).…”

“…Willingness to adopt best management practices on poultry operations is positively influenced by farm income (Paudel and Devkota 2007). Educational attainment also influences farmers' willingness to apply best management practices (Chang and Boisvert 2005;Drost, Long and Hale, 1998;Ladue, Miller and Kwiatkowski 1990;Obubuafo, Gillespie, Paudel and Kim, 2008;Paudel and Devkota 2007). These socio-economic factors are very important in the life of farmers as the afore mentioned dependent variables have revealed.…”