IDEAS home Printed from https://ideas.repec.org/a/eee/wdevel/v64y2014icp125-139.html
   My bibliography  Save this article

Heterogeneous Demand for Drought-Tolerant Rice: Evidence from Bihar, India

Author

Listed:
  • Ward, Patrick S.
  • Ortega, David L.
  • Spielman, David J.
  • Singh, Vartika

Abstract

Efforts to develop rice cultivars with drought tolerance (DT) traits have resulted in several varieties that demonstrate significant resilience to drought stresses. We employ discrete choice experiments to examine farmers’ preferences for DT traits and explore heterogeneity in these preferences using primary data from Bihar, India. Results suggest that farmers value reductions in yield variability offered by DT paddy, but are willing to pay even more for seeds that offer yield advantages under normal conditions. We demonstrate that risk aversion and loss aversion not only significantly influence choice probabilities but also affect the way farmers value different seed attributes.

Suggested Citation

  • Ward, Patrick S. & Ortega, David L. & Spielman, David J. & Singh, Vartika, 2014. "Heterogeneous Demand for Drought-Tolerant Rice: Evidence from Bihar, India," World Development, Elsevier, vol. 64(C), pages 125-139.
    • Handle: RePEc:eee:wdevel:v:64:y:2014:i:c:p:125-139
    DOI: 10.1016/j.worlddev.2014.05.017
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305750X14001387
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.worlddev.2014.05.017?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. David L. Ortega & H. Holly Wang & Nicole J. Olynk & Laping Wu & Junfei Bai, 2012. "Chinese Consumers' Demand for Food Safety Attributes: A Push for Government and Industry Regulations," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(2), pages 489-495.
    2. Lee L. Schulz & Glynn T. Tonsor, 2010. "Cow‐Calf Producer Preferences for Voluntary Traceability Systems," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(1), pages 138-162, February.
    3. Tomas Nilsson & Ken Foster & Jayson L. Lusk, 2006. "Marketing Opportunities for Certified Pork Chops," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(4), pages 567-583, December.
    4. Justin Yifu Lin, 1991. "Education and Innovation Adoption in Agriculture: Evidence from Hybrid Rice in China," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(3), pages 713-723.
    5. Jayson L. Lusk & Brian C. Briggeman, 2009. "Food Values," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(1), pages 184-196.
    6. Ubilava, David & Foster, Kenneth, 2009. "Quality certification vs. product traceability: Consumer preferences for informational attributes of pork in Georgia," Food Policy, Elsevier, vol. 34(3), pages 305-310, June.
    7. Mottaleb, Khondoker A. & Rejesus, Roderick M. & Mohanty, Samarendu & Murty, M.V.R. & Li, Tao & Valera, Harold Glenn & Gumma, Murali Krishna, 2012. "Ex Ante Impact Assessment of a Drought Tolerant Rice Variety in the Presence of Climate Change," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124745, Agricultural and Applied Economics Association.
    8. Tversky, Amos & Kahneman, Daniel, 1992. "Advances in Prospect Theory: Cumulative Representation of Uncertainty," Journal of Risk and Uncertainty, Springer, vol. 5(4), pages 297-323, October.
    9. Dalton, Timothy J. & Yesuf, Mahmud & Muhammad, Lutta, 2011. "Demand for Drought Tolerance in Africa: Selection of Drought Tolerant Maize Seed using Framed Field Experiments," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103712, Agricultural and Applied Economics Association.
    10. Elaine M. Liu, 2013. "Time to Change What to Sow: Risk Preferences and Technology Adoption Decisions of Cotton Farmers in China," The Review of Economics and Statistics, MIT Press, vol. 95(4), pages 1386-1403, October.
    11. Lybbert, Travis J., 2006. "Indian farmers' valuation of yield distributions: Will poor farmers value `pro-poor' seeds?," Food Policy, Elsevier, vol. 31(5), pages 415-441, October.
    12. Jayson L. Lusk & Jutta Roosen & John A. Fox, 2003. "Demand for Beef from Cattle Administered Growth Hormones or Fed Genetically Modified Corn: A Comparison of Consumers in France, Germany, the United Kingdom, and the United States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 16-29.
    13. Tomomi Tanaka & Colin F. Camerer & Quang Nguyen, 2010. "Risk and Time Preferences: Linking Experimental and Household Survey Data from Vietnam," American Economic Review, American Economic Association, vol. 100(1), pages 557-571, March.
    14. Sergio Colombo & Nick Hanley & Jordan Louviere, 2009. "Modeling preference heterogeneity in stated choice data: an analysis for public goods generated by agriculture," Agricultural Economics, International Association of Agricultural Economists, vol. 40(3), pages 307-322, May.
    15. Smale, Melinda & Zambrano, Patricia & Gruère, Guillaume & Falck-Zepeda, José & Matuschke, Ira & Horna, Daniela & Nagarajan, Latha & Yerramareddy, Indira & Jones, Hannah, 2009. "Measuring the economic impacts of transgenic crops in developing agriculture during the first decade: Approaches, findings, and future directions," Food policy reviews 10, International Food Policy Research Institute (IFPRI).
    16. Jayson L. Lusk & F. Bailey Norwood & J. Ross Pruitt, 2006. "Consumer Demand for a Ban on Antibiotic Drug Use in Pork Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(4), pages 1015-1033.
    17. Loureiro, Maria L. & Umberger, Wendy J., 2007. "A choice experiment model for beef: What US consumer responses tell us about relative preferences for food safety, country-of-origin labeling and traceability," Food Policy, Elsevier, vol. 32(4), pages 496-514, August.
    18. Ortega, David L. & Wang, H. Holly & Olynk Widmar, Nicole J. & Wu, Laping, 2014. "Chinese producer behavior: Aquaculture farmers in southern China," China Economic Review, Elsevier, vol. 28(C), pages 17-24.
    19. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    20. Daniel McFadden & Kenneth Train, 2000. "Mixed MNL models for discrete response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(5), pages 447-470.
    21. Adamowicz W. & Louviere J. & Williams M., 1994. "Combining Revealed and Stated Preference Methods for Valuing Environmental Amenities," Journal of Environmental Economics and Management, Elsevier, vol. 26(3), pages 271-292, May.
    22. Quang Nguyen & Colin Camerer & Tomomi Tanaka, 2010. "Risk and Time Preferences Linking Experimental and Household Data from Vietnam," Post-Print halshs-00547090, HAL.
    23. Drazen Prelec, 1998. "The Probability Weighting Function," Econometrica, Econometric Society, vol. 66(3), pages 497-528, May.
    24. David Revelt & Kenneth Train, 1998. "Mixed Logit With Repeated Choices: Households' Choices Of Appliance Efficiency Level," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 647-657, November.
    25. Boxall, Peter C. & Adamowicz, Wiktor L. & Swait, Joffre & Williams, Michael & Louviere, Jordan, 1996. "A comparison of stated preference methods for environmental valuation," Ecological Economics, Elsevier, vol. 18(3), pages 243-253, September.
    26. Ortega, David L. & Wang, H. Holly & Olynk Widmar, Nicole J. & Wu, Laping, 2014. "Reprint of “Chinese producer behavior: Aquaculture farmers in southern China”," China Economic Review, Elsevier, vol. 30(C), pages 540-547.
    27. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    28. Krinsky, Itzhak & Robb, A Leslie, 1986. "On Approximating the Statistical Properties of Elasticities," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 715-719, November.
    29. Ortega, David L. & Wang, H. Holly & Wu, Laping & Olynk, Nicole J., 2011. "Modeling heterogeneity in consumer preferences for select food safety attributes in China," Food Policy, Elsevier, vol. 36(2), pages 318-324, April.
    30. David L. Ortega & H. Holly Wang & Nicole J. Olynk Widmar, 2014. "Aquaculture imports from Asia: an analysis of U.S. consumer demand for select food quality attributes," Agricultural Economics, International Association of Agricultural Economists, vol. 45(5), pages 625-634, September.
    31. Lusk, Jayson L. & Briggeman, Brian C., 2008. "AJAE appendix for “Food Values”," American Journal of Agricultural Economics APPENDICES, Agricultural and Applied Economics Association, vol. 91(1), pages 1-12, February.
    32. World Bank, 2008. "Climate Change Impacts in Drought and Flood Affected Areas : Case Studies in India," World Bank Publications - Reports 8075, The World Bank Group.
    33. Gruere, Guillaume P. & Sun, Yan, 2012. "Measuring the contribution of Bt cotton adoption to India's cotton yields leap:," IFPRI discussion papers 1170, International Food Policy Research Institute (IFPRI).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ward, Patrick S. & Ortega, David L. & Spielman, David J. & Singh, Vartika, 2013. "Farmer preferences for drought tolerance in hybrid versus inbred rice: Evidence from Bihar, India:," IFPRI discussion papers 1307, International Food Policy Research Institute (IFPRI).
    2. Ortega, David L. & Wang, H. Holly & Wu, Laping & Hong, Soo Jeong, 2015. "Retail channel and consumer demand for food quality in China," China Economic Review, Elsevier, vol. 36(C), pages 359-366.
    3. Ward, Patrick S. & Ortega, David L. & Spielman, David J. & Singh, Vartika & Magnan, Nicholas, 2013. "Farmer Preferences for Abiotic Stress Tolerance in Hybrid versus Inbred Rice: Evidence from Bihar, India," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150786, Agricultural and Applied Economics Association.
    4. Wu, Linhai & Wang, Shuxian & Zhu, Dian & Hu, Wuyang & Wang, Hongsha, 2015. "Chinese consumers’ preferences and willingness to pay for traceable food quality and safety attributes: The case of pork," China Economic Review, Elsevier, vol. 35(C), pages 121-136.
    5. Haghani, Milad & Bliemer, Michiel C.J. & Hensher, David A., 2021. "The landscape of econometric discrete choice modelling research," Journal of choice modelling, Elsevier, vol. 40(C).
    6. Wang, Shuxian & Wu, Linhai & Zhu, Dian & Wang, Hongsha & Xu, Lingling, 2014. "Chinese consumers’ preferences and willingness to pay for traceable food attributes: The case of pork," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 165639, Agricultural and Applied Economics Association.
    7. Zheng, Qiujie & Wang, H. Holly, 2016. "Chinese preferences for sustainable attributes for food away from home: A rank-ordered model," China Economic Review, Elsevier, vol. 41(C), pages 148-158.
    8. H. Holly Wang & Lu Liu & David L. Ortega & Yu Jiang & Qiujie Zheng, 2020. "Are smallholder farmers willing to pay for different types of crop insurance? An application of labelled choice experiments to Chinese corn growers," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 45(1), pages 86-110, January.
    9. Bartczak, Anna & Chilton, Susan & Czajkowski, Mikołaj & Meyerhoff, Jürgen, 2017. "Gain and loss of money in a choice experiment. The impact of financial loss aversion and risk preferences on willingness to pay to avoid renewable energy externalities," Energy Economics, Elsevier, vol. 65(C), pages 326-334.
    10. Shijiu Yin & Shanshan Lv & Yusheng Chen & Linhai Wu & Mo Chen & Jiang Yan, 2018. "Consumer preference for infant milk‐based formula with select food safety information attributes: Evidence from a choice experiment in China," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 66(4), pages 557-569, December.
    11. Julia Ihli, Hanna & Chiputwa, Brian & Winter, Etti & Gassner, Anja, 2022. "Risk and time preferences for participating in forest landscape restoration: The case of coffee farmers in Uganda," World Development, Elsevier, vol. 150(C).
    12. David L. Ortega & H. Holly Wang & Nicole J. Olynk Widmar, 2014. "Aquaculture imports from Asia: an analysis of U.S. consumer demand for select food quality attributes," Agricultural Economics, International Association of Agricultural Economists, vol. 45(5), pages 625-634, September.
    13. Doherty, Edel & Campbell, Danny, 2011. "Demand for improved food safety and quality: a cross-regional comparison," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108791, Agricultural Economics Society.
    14. Freudenreich, Hanna & Musshoff, Oliver & Wiercinski, Ben, 2017. "The Relationship between Farmers' Shock Experiences and their Uncertainty Preferences - Experimental Evidence from Mexico," GlobalFood Discussion Papers 256212, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    15. Heutel, Garth, 2019. "Prospect theory and energy efficiency," Journal of Environmental Economics and Management, Elsevier, vol. 96(C), pages 236-254.
    16. Visser, Martine & Jumare, Hafsah & Brick, Kerri, 2020. "Risk preferences and poverty traps in the uptake of credit and insurance amongst small-scale farmers in South Africa," Journal of Economic Behavior & Organization, Elsevier, vol. 180(C), pages 826-836.
    17. Campos-Vazquez, Raymundo M. & Cuilty, Emilio, 2014. "The role of emotions on risk aversion: A Prospect Theory experiment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 50(C), pages 1-9.
    18. Petraud, Jean & Boucher, Stephen & Carter, Michael, 2015. "Competing theories of risk preferences and the demand for crop insurance: Experimental evidence from Peru," 2015 Conference, August 9-14, 2015, Milan, Italy 211383, International Association of Agricultural Economists.
    19. Arjan Verschoor & Ben D’Exelle, 2022. "Probability weighting for losses and for gains among smallholder farmers in Uganda," Theory and Decision, Springer, vol. 92(1), pages 223-258, February.
    20. Bartczak, Anna & Chilton, Susan & Meyerhoff, Jürgen, 2015. "Wildfires in Poland: The impact of risk preferences and loss aversion on environmental choices," Ecological Economics, Elsevier, vol. 116(C), pages 300-309.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:wdevel:v:64:y:2014:i:c:p:125-139. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/worlddev .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.