Subscribe Now Subscribe Today
Science Alert
 
FOLLOW US:     Facebook     Twitter
Blue
   
Curve Top
Journal of Applied Sciences
  Year: 2006 | Volume: 6 | Issue: 7 | Page No.: 1490-1498
DOI: 10.3923/jas.2006.1490.1498
Can Risk-aversion Towards Fertilizer Explain Part of the Non-adoption Puzzle for Hybrid Maize? Empirical Evidence from Malawi
Franklin Simtowe, John Mduma , Alexander Phiri , Alban Thomas and Manfred Zeller

Abstract:
This study investigates the linkage between attitudes towards risk and adoption. We empirically examine the relative risk premium related to fertilizer-use among 404 farmers from Malawi and examine the relationship between risk aversion on fertilizer-use and the adoption of hybrid maize. Results show that Malawian farmers exhibit absolute Arrow-Pratt risk aversion towards the use of fertilizer. The findings also reveal that risk aversion towards the use of fertilizer is strongly associated with low intensity of hybrid maize adoption and that other than the safety net programs, human and financial capital variables such as age, household size, land size and off-farm income can be helpful in explaining the non-adoption puzzle. While safety net programs such as the free input distribution increase the likelihood of adoption, they are associated with low levels of adoption intensity for hybrid maize. A key lesson is that when considering promoting a technology, it is important to assess the profit distribution associated with the use of complementary inputs and its implications for risk preference among technology users in order to avoid formulating misguiding policies.
 [Fulltext PDF]   [Fulltext HTML]   [XML: Abstract + References]   [References]   [View Citation]  [Report Citation]
How to cite this article:

Franklin Simtowe, John Mduma , Alexander Phiri , Alban Thomas and Manfred Zeller , 2006. Can Risk-aversion Towards Fertilizer Explain Part of the Non-adoption Puzzle for Hybrid Maize? Empirical Evidence from Malawi. Journal of Applied Sciences, 6: 1490-1498.

DOI: 10.3923/jas.2006.1490.1498

URL: https://scialert.net/abstract/?doi=jas.2006.1490.1498

 
COMMENT ON THIS PAPER
 
 
 

 

 
 
 
 
 
 
 
 
 

 
 
 
 
 
 

Curve Bottom