Peer effects in the diffusion of water‐saving agricultural technologies

Abstract

We investigate the role of peer effects in the diffusion of an important water-saving irrigation technology: low energy precise application (LEPA). Using detailed irrigation behavior data for growers in the High Plains Aquifer region of Kansas covering 1990-2014, we find clear evidence of peer influence in adoption of LEPA, net of environmental factors. Specifically, an additional neighboring LEPA installation within 1 km increases the probability of adoption by about 0.3 percentage points, on average, and this effect diminishes with distance. Our empirical estimates indicate that in the absence of peer effects, LEPA adoption would have been about 10% lower (1,000-1,600 fewer installations) per year. In addition, we find that growers install LEPA in response to higher energy prices. K E Y W O R D Sefficient irrigation, High Plains Aquifer, peer effects, technology adoption, water-saving technology J E L C L A S S I F I C A T I O NO33, Q15, Q16, Q25, R11

Spatial diffusion of efficient irrigation systems: a study of São Paulo, Brazil*

“…Endogenous effects reflect technological spillovers in the diffusion of irrigation, for example, through the transmission of successful experiences (or imitation) of irrigation in neighbouring municipalities (Richards 2018). Similar results for irrigation technologies have been reported by Genius et al (2014) and Sampson and Perry (2019).…”

“…We analysed spatial spillover effects on the diffusion of more efficient irrigation strategies in SP. Spatial spillovers are linked to peer effects and can be understood in the context of agriculture as farmers' influence in a particular farmer's decision-making (Sampson and Perry 2019). The estimation of spillover effects is a topic of growing concern in economic literature, and few studies have specifically analysed irrigation in agriculture.…”

Roles of Selective Agriculture Practices in Sustainable Agricultural Performance: A Systematic Review

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