{"title":"Farmers' willingness to pay for smart farming technologies: evidence from a smart drip irrigation technology in North China","authors":"Hui Tao, Hang Xiong, Liangzhi You, Fan Li","doi":"10.1108/caer-03-2023-0050","DOIUrl":null,"url":null,"abstract":"<h3>Purpose</h3>\n<p>Smart farming technologies (SFTs) can increase yields and reduce the environmental impacts of farming by improving the efficient use of inputs. This paper is to estimate farmers' preference and willingness to pay (WTP) for a well-defined SFT, smart drip irrigation (SDI) technology.</p><!--/ Abstract__block -->\n<h3>Design/methodology/approach</h3>\n<p>This study conducted a discrete choice experiment (DCE) among 1,300 maize farmers in North China to understand their WTP for various functions of SDI using mixed logit (MIXL) models.</p><!--/ Abstract__block -->\n<h3>Findings</h3>\n<p>The results show that farmers have a strong preference for SDI in general and its specific functions of smart sensing and smart control. However, farmers do not have a preference for the function of region-level agronomic planning. Farmers' preferences for different functions of SDI are heterogeneous. Their preference was significantly associated with their education, experience of being village cadres and using computers, household income and holding of land and machines. Further analysis show that farmers' WTP for functions facilitated by hardware is close to the estimated prices, whereas their WTP for functions wholly or partially facilitated by software is substantially lower than the estimated prices.</p><!--/ Abstract__block -->\n<h3>Practical implications</h3>\n<p>Findings from the empirical study lead to policy implications for enhancing the design of SFTs by integrating software and hardware and optimizing agricultural extension strategies for SFTs with digital techniques such as videos.</p><!--/ Abstract__block -->\n<h3>Originality/value</h3>\n<p>This study provides initial insights into understanding farmers' preferences and WTP for specific functions of SFTs with a DCE.</p><!--/ Abstract__block -->","PeriodicalId":10095,"journal":{"name":"China Agricultural Economic Review","volume":"16 1","pages":""},"PeriodicalIF":4.4000,"publicationDate":"2023-12-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"China Agricultural Economic Review","FirstCategoryId":"96","ListUrlMain":"https://doi.org/10.1108/caer-03-2023-0050","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"AGRICULTURAL ECONOMICS & POLICY","Score":null,"Total":0}
引用次数: 0
Abstract
Purpose
Smart farming technologies (SFTs) can increase yields and reduce the environmental impacts of farming by improving the efficient use of inputs. This paper is to estimate farmers' preference and willingness to pay (WTP) for a well-defined SFT, smart drip irrigation (SDI) technology.
Design/methodology/approach
This study conducted a discrete choice experiment (DCE) among 1,300 maize farmers in North China to understand their WTP for various functions of SDI using mixed logit (MIXL) models.
Findings
The results show that farmers have a strong preference for SDI in general and its specific functions of smart sensing and smart control. However, farmers do not have a preference for the function of region-level agronomic planning. Farmers' preferences for different functions of SDI are heterogeneous. Their preference was significantly associated with their education, experience of being village cadres and using computers, household income and holding of land and machines. Further analysis show that farmers' WTP for functions facilitated by hardware is close to the estimated prices, whereas their WTP for functions wholly or partially facilitated by software is substantially lower than the estimated prices.
Practical implications
Findings from the empirical study lead to policy implications for enhancing the design of SFTs by integrating software and hardware and optimizing agricultural extension strategies for SFTs with digital techniques such as videos.
Originality/value
This study provides initial insights into understanding farmers' preferences and WTP for specific functions of SFTs with a DCE.
期刊介绍:
Published in association with China Agricultural University and the Chinese Association for Agricultural Economics, China Agricultural Economic Review publishes academic writings by international scholars, and particularly encourages empirical work that can be replicated and extended by others; and research articles that employ econometric and statistical hypothesis testing, optimization and simulation models. The journal aims to publish research which can be applied to China’s agricultural and rural policy-making process, the development of the agricultural economics discipline and to developing countries hoping to learn from China’s agricultural and rural development.