Subsidies alone are not enough to increase adoption of agricultural water management interventions

Abstract

The adoption of agricultural water interventions for climate change adaptation has been slow and limited despite their established efficacy and benefits. While several studies have identified socio-economic, biophysical, technological and institutional factors that influence adoption, psychological factors have often been overlooked. This study examines the socio-economic and psychological factors, using RANAS behavioral model, that influence the adoption of agricultural water interventions in the semi-arid region of Saurashtra in India. Two contrasting and dominating agricultural water interventions in the area: drip irrigation and borewells are evaluated. Despite subsidies being available for drip irrigation systems, the adoption rate remains low (~16% adopting rate) compared to borewells (~ 24.5% adoption) with no subsidies reflecting farmer’s preference for supply augmentation measures over demand management. Incorporating psychological factors in the analysis improved the explanatory power of the logistic model by almost threefold, underscoring the significance of psychological factors in explaining farmers' adoption decisions. Based on the logistic model, major factors determining farmers adoption behaviour identified are farmer’s perceived ability, risk preference and positive beliefs about the technologies along with socio-economic (e.g., land size) and biophysical factors (e.g., proximity to water). The study recommends a multi-pronged approach to increase the adoption of interventions, including augmenting subsidies with efforts on extension services, post-adoption services, training, and awareness campaigns to build farmers' capacity and raise awareness.