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Peer effects in the diffusion of water‐saving agricultural technologies

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  • Gabriel S. Sampson
  • Edward D. Perry
Abstract
We investigate the role of peer effects in the diffusion of an important water‐saving irrigation technology: low energy precise application (LEPA). Using detailed irrigation behavior data for growers in the High Plains Aquifer region of Kansas covering 1990–2014, we find clear evidence of peer influence in adoption of LEPA, net of environmental factors. Specifically, an additional neighboring LEPA installation within 1 km increases the probability of adoption by about 0.3 percentage points, on average, and this effect diminishes with distance. Our empirical estimates indicate that in the absence of peer effects, LEPA adoption would have been about 10% lower (1,000–1,600 fewer installations) per year. In addition, we find that growers install LEPA in response to higher energy prices.

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  • Gabriel S. Sampson & Edward D. Perry, 2019. "Peer effects in the diffusion of water‐saving agricultural technologies," Agricultural Economics, International Association of Agricultural Economists, vol. 50(6), pages 693-706, November.
    • Handle: RePEc:bla:agecon:v:50:y:2019:i:6:p:693-706
    DOI: 10.1111/agec.12518
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    2. Sampson, Gabriel S. & Al-Sudani, Amer & Bergtold, Jason, 2021. "Local irrigation response to ethanol expansion in the High Plains Aquifer," Resource and Energy Economics, Elsevier, vol. 66(C).
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    4. Hongyun Zheng & Wanglin Ma & Gucheng Li, 2021. "Learning from neighboring farmers: Does spatial dependence affect adoption of drought‐tolerant wheat varieties in China?," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 69(4), pages 519-537, December.

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