IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i19p14300-d1249302.html
   My bibliography  Save this article

Determinants of Smallholder Rice Farmers’ Willingness-to-Pay for Private Extension Services in Liberia: The Case of Gibi District

Author

Listed:
  • Togba V. Sumo

    (Department of Agricultural Economics, University of Nairobi, Nairobi P.O. Box 29053-00625, Kenya)

  • Cecilia Ritho

    (Department of Agricultural Economics, University of Nairobi, Nairobi P.O. Box 29053-00625, Kenya)

  • Patrick Irungu

    (Department of Agricultural Economics, University of Nairobi, Nairobi P.O. Box 29053-00625, Kenya)

Abstract

Globally, many policymakers and extension professionals have advocated for the privatization of extension services in order to reduce the burden of funding faced by the state as well as to adequately respond to the low productivity problem of farmers as they endeavor to tackle productivity problems. This study assessed willingness-to-pay (WTP) for private extension services by farmers and identified the determinants of their WTP using Gibi District of Liberia as a case study. A multistage sampling technique was used in selecting 296 smallholder rice farmers in the district while the double-bounded dichotomous choice contingent valuation method was used to elicit maximum WTP value for farmers. Descriptive statistics were computed and the double-bounded logit model used to analyze the data. The findings revealed that 78.7% of the rice farmers were willing to pay for privatized extension services and on average, a farmer was willing to pay US$11.21 per farm visit, almost twice the average daily wage rate of a skilled worker in Liberia. The results from the model showed that WTP was significantly positively influenced by the household head’s age, years of schooling, household size, annual income, and distance to extension service provider. The study recommends that the Liberian government and its development partners should encourage the private sector to invest more in extension services to take advantage of the relatively high farmers’ WTP and effective demand. In addition, the government should design and implement programs that reduce transaction costs in addition to increasing farmers’ income in order to enhance their capacity to pay for privatized extension services.

Suggested Citation

  • Togba V. Sumo & Cecilia Ritho & Patrick Irungu, 2023. "Determinants of Smallholder Rice Farmers’ Willingness-to-Pay for Private Extension Services in Liberia: The Case of Gibi District," Sustainability, MDPI, vol. 15(19), pages 1-13, September.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:19:p:14300-:d:1249302
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/19/14300/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/19/14300/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ching-Sung Lee & Yen-Cheng Chen & Pei-Ling Tsui & Ming-Chen Chiang, 2023. "Using the Theory of Planned Behavior to Examine the Sustainable Extension of Rural Food Preparation Techniques," Agriculture, MDPI, vol. 13(5), pages 1-15, May.
    2. Lopez-Feldman, Alejandro, 2012. "Introduction to contingent valuation using Stata," MPRA Paper 41018, University Library of Munich, Germany.
    3. Jinhua Zhao & Catherine L. Kling, 2004. "Willingness to Pay, Compensating Variation, and the Cost of Commitment," Economic Inquiry, Western Economic Association International, vol. 42(3), pages 503-517, July.
    4. Hakan Baydur & Erhan Eser & Nesibe Efruz Sen Gundogan & Emine Ayhan & Sultan Eser & Bahadır Dede & Esin Hazneci & Yeşim Benal Öztekin & Galip Ekuklu & Sibel Cevizci & Stephan Van den Broucke, 2023. "Psychological Determinants of Turkish Farmers’ Health and Safety Behaviors: An Application of the Extended Theory of Planned Behavior," Agriculture, MDPI, vol. 13(5), pages 1-13, April.
    5. W. Michael Hanemann, 1984. "Welfare Evaluations in Contingent Valuation Experiments with Discrete Responses," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(3), pages 332-341.
    6. Mustafa Hakkı Aydoğdu & Mehmet Reşit Sevinç & Mehmet Cançelik & Hatice Parlakçı Doğan & Zeliha Şahin, 2020. "Determination of Farmers’ Willingness to Pay for Sustainable Agricultural Land Use in the GAP-Harran Plain of Turkey," Land, MDPI, vol. 9(8), pages 1-15, August.
    7. Nigora Baymuminova & Guljakhon Shermukhammedova & Jeong-Gil Choi, 2023. "Estimating the Economic Value of Ichan Kala Using the Contingent Valuation Method (CVM)," Sustainability, MDPI, vol. 15(3), pages 1-18, February.
    8. Ajzen, Icek, 1991. "The theory of planned behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 50(2), pages 179-211, December.
    9. Pinuccia Calia & Elisabetta Strazzera, 2000. "Bias and efficiency of single versus double bound models for contingent valuation studies: a Monte Carlo analysis," Applied Economics, Taylor & Francis Journals, vol. 32(10), pages 1329-1336.
    10. Michael Hanemann & John Loomis & Barbara Kanninen, 1991. "Statistical Efficiency of Double-Bounded Dichotomous Choice Contingent Valuation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(4), pages 1255-1263.
    11. Rodrigo Abed & Haroon Sseguya & James Flock & Silvanus Mruma & Hamisi Mwango, 2020. "An Evolving Agricultural Extension Model for Lasting Impact: How Willing Are Tanzanian Farmers to Pay for Extension Services?," Sustainability, MDPI, vol. 12(20), pages 1-13, October.
    12. repec:aer:wpaper:154 is not listed on IDEAS
    13. Jiahao He & Zhefan Yu & Hiroatsu Fukuda, 2021. "Extended Theory of Planned Behavior for Predicting the Willingness to Pay for Municipal Solid Waste Management in Beijing," Sustainability, MDPI, vol. 13(24), pages 1-15, December.
    14. Li, Rui & Lee, Chien-Hsing & Lin, Yu-Ting & Liu, Chi-Wei, 2020. "Chinese consumers’ willingness to pay for organic foods: a conceptual review," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 23(2), May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cristiane Barreto & Ana Clara Carlos & Isabella Silva & Renata Nunes & Aline Lourenço & Sanderson Barbalho, 2024. "Uncovering the Challenges and Cornerstones for the Governance of an Innovation Ecosystem in Organic and Agroecological Agriculture," Sustainability, MDPI, vol. 16(13), pages 1-21, June.

    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. Jichao Geng & Na Yang & Wei Zhang & Li Yang, 2023. "Public Willingness to Pay for Green Lifestyle in China: A Contingent Valuation Method Based on Integrated Model," IJERPH, MDPI, vol. 20(3), pages 1-23, January.
    2. Rong-Chang Jou & Yuan-Chan Wu & Ke-Hong Chen, 2011. "Analysis of the environmental benefits of a motorcycle idling stop policy at urban intersections," Transportation, Springer, vol. 38(6), pages 1017-1033, November.
    3. Vilela, Thais & Malky Harb, Alfonso & Mendizábal Vergara, Carla, 2022. "Chileans' willingness to pay for protected areas," Ecological Economics, Elsevier, vol. 201(C).
    4. Gebreegziabher, Z. & Mekonnen, A. & Beyene, A.D. & Hagos, F., 2018. "Valuation of access to irrigation water in rural Ethiopia: application of choice experiment and contingent valuation methods," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277168, International Association of Agricultural Economists.
    5. Gebretsadik, Kidanemariam Abreha & Romstad, Eirik, 2020. "Climate and farmers’ willingness to pay for improved irrigation water supply," World Development Perspectives, Elsevier, vol. 20(C).
    6. Ricardo Faria & Raul Matsuhita & Jorge Nogueira & Benjamin Tabak, 2007. "Realism Versus Statistical Efficiency: A Note on Contingent Valuation with Follow-up Queries," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 35(4), pages 451-462, December.
    7. Alemu Mekonnen & Zenebe Gebreegziabher & Abebe D. Beyene & Fitsum Hagos, 2019. "Valuation of Access to Irrigation Water in Rural Ethiopia: Application of Choice Experiment and Contingent Valuation Methods," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 6(01), pages 1-26, September.
    8. Oerlemans, Leon A.G. & Chan, Kai-Ying & Volschenk, Jako, 2016. "Willingness to pay for green electricity: A review of the contingent valuation literature and its sources of error," Renewable and Sustainable Energy Reviews, Elsevier, vol. 66(C), pages 875-885.
    9. Massimo Florio & Francesco Giffoni, 2020. "A contingent valuation experiment about future particle accelerators at CERN," PLOS ONE, Public Library of Science, vol. 15(3), pages 1-24, March.
    10. Richard Carson & Theodore Groves, 2007. "Incentive and informational properties of preference questions," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 37(1), pages 181-210, May.
    11. Innocent, Kwagala, 2018. "Consumer Acceptance And Willingness To Pay For Shelf Life Extended Fresh Cassava Roots In Uganda: Case Of Kampala District," Research Theses 276439, Collaborative Masters Program in Agricultural and Applied Economics.
    12. Franz Hackl & Gerald J. Pruckner, 2005. "Warm glow, free‐riding and vehicle neutrality in a health‐related contingent valuation study," Health Economics, John Wiley & Sons, Ltd., vol. 14(3), pages 293-306, March.
    13. Nayga, Rodolfo M., Jr. & Aiew, Wipon & Woodward, Richard T., 2004. "Willingness to Pay for Irradiated Food: A Non Hypothetical Market Experiment," 84th Seminar, February 8-11, 2004, Zeist, The Netherlands 24995, European Association of Agricultural Economists.
    14. Wei Zheng & Hongliang Qiu & Alastair M. Morrison, 2023. "Applying a Combination of SEM and fsQCA to Predict Tourist Resource-Saving Behavioral Intentions in Rural Tourism: An Extension of the Theory of Planned Behavior," IJERPH, MDPI, vol. 20(2), pages 1-23, January.
    15. W. Michael Hanemann, 1994. "Valuing the Environment through Contingent Valuation," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 19-43, Fall.
    16. Abay Asfaw & Joachim Braun, 2005. "Innovations in Health Care Financing: New Evidence on the Prospect of Community Health Insurance Schemes in the Rural Areas of Ethiopia," International Journal of Health Economics and Management, Springer, vol. 5(3), pages 241-253, September.
    17. Richard T. Carson & Miko_aj Czajkowski, 2014. "The discrete choice experiment approach to environmental contingent valuation," Chapters, in: Stephane Hess & Andrew Daly (ed.), Handbook of Choice Modelling, chapter 9, pages 202-235, Edward Elgar Publishing.
    18. Siikamki, Juha, 2001. "Valuing Benefits of Finnish Forest Biodiversity Conservation: Fixed and Random Parameter Logit Models for Pooled Contingent Valuation and Contingent Rating/Ranking Survey Data," Western Region Archives 321696, Western Region - Western Extension Directors Association (WEDA).
    19. Hermann Donfouet & Ephias Makaudze & Pierre-Alexandre Mahieu & Eric Malin, 2011. "The determinants of the willingness-to-pay for community-based prepayment scheme in rural Cameroon," International Journal of Health Economics and Management, Springer, vol. 11(3), pages 209-220, September.
    20. Amirnejad, Hamid & Khalilian, Sadegh & Assareh, Mohammad H. & Ahmadian, Majid, 2006. "Estimating the existence value of north forests of Iran by using a contingent valuation method," Ecological Economics, Elsevier, vol. 58(4), pages 665-675, July.

    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:gam:jsusta:v:15:y:2023:i:19:p:14300-:d:1249302. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.