Drivers for the adoption of circular eco-innovations in agriculture: insights from a field experiment on olive growers

Abstract

Circular economy is emerging as a key approach for transitioning to a more sustainable economic model. However, understanding how to facilitate the transition to a circular economy remains a critical challenge. This study analyses the drivers for the adoption of circular eco-innovations in the agricultural sector by considering both firm-level factors and cognitive characteristics of firms’ managers. Specifically, the willingness to adopt two selected circular eco-innovations was assessed through face-to-face interviews involving a sample of 211 olive growers in Apulia region (Italy). The two tested circular eco-innovations consist of the use of olive pomace digestate as soil conditioner/fertilizer and the use of reclaimed wastewater for irrigation. Data analysis was performed by estimating a bivariate ordered-response probit model. Findings revealed that farmer’s cognitive characteristics, particularly environmental risk awareness, play a key role in the path of adoption. Therefore, a full circular transition in agriculture can be achieved only through a significant shift in farmers’ mind-set, a process that takes time and needs to be supported by tailored policy measures.