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

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  • 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
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