2020
DOI: 10.1162/rest_a_00823
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Technology Adoption under Uncertainty: Take-Up and Subsequent Investment in Zambia

Abstract: Technology adoption often requires multiple stages of investment. As new information emerges, agents may abandon a technology that was profitable in expectation. We use a field experiment to vary the payoffs at two stages of investment in a new technology: a tree species that provides on-farm fertilizer benefits. Farmer decisions identify the information about profitability that arrives between the take-up and follow-through stages. Results show that this form of uncertainty increases take-up but lowe… Show more

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Cited by 26 publications
(16 citation statements)
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“…Once a new technology is created, its adoption depends on the diffusion of associated knowledge. The speed of technology diffusion has been the subject of much interest (Griliches ; Batz, Peters, and Janssen ; Rogers ; Marra, Pannell, and Ghadim ; Abdulai and Huffman ; Genius et al ; Oliva et al Forthcoming). As stressed in the previous section, this diffusion depends on learning.…”
Section: Innovations and Technology Adoptionmentioning
confidence: 99%
“…Once a new technology is created, its adoption depends on the diffusion of associated knowledge. The speed of technology diffusion has been the subject of much interest (Griliches ; Batz, Peters, and Janssen ; Rogers ; Marra, Pannell, and Ghadim ; Abdulai and Huffman ; Genius et al ; Oliva et al Forthcoming). As stressed in the previous section, this diffusion depends on learning.…”
Section: Innovations and Technology Adoptionmentioning
confidence: 99%
“…For economists interested in understanding adoption, on the other hand, the results point to the importance of understanding the differences in trial designs and the extent of control by researchers. Development economists, who often refer to such results as evidence for the promise of new technologies do not necessarily make this distinction [32][33][34][35][36][37][38] . The need for a management adjustment, for instance, is likely to be less important for trials that can be classified as collegial in the Biggs classification, while they are possibly more important for contractual trials 12 .…”
Section: Discussionmentioning
confidence: 99%
“…RCTs involving private smallholders in Uganda (162) and Zambia (163) have investigated the impacts of payments linked to short-run seedling survival. In Uganda, the payments significantly increased not only survival but also the share of households that planted trees and the mean area and mean number of trees they planted.…”
Section: Payments For Ecosystem Services Programsmentioning
confidence: 99%
“…If landholders are well-informed and participate voluntarily in PES programs, then one would not expect participation to negatively affect them. Landholders do not have perfect foresight, however, and they might not understand tree-planting technologies well (163). Both reasons could cause them to lose income even if they participate voluntarily in FR PES programs.…”
Section: Payments For Ecosystem Services Programsmentioning
confidence: 99%