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Farmers’ preferences and willingness to pay for climate-smart agricultural technologies on rice production in Nigeria

Author

Listed:
  • Ifeoma Q. Anugwa
  • Elizabeth A. Onwubuya
  • Jane M. Chah
  • Chisom C. Abonyi
  • Eleanya K. Nduka

Abstract

Climate change is a critical environmental issue that has threatened sustainable rice production in Nigeria. The application of climate-smart agricultural (CSA) technologies by smallholder farmers is vital for sustaining rice production in the face of climate change impacts. We investigate rice farmers’ preferences and elicit willingness to pay (WTP) for CSA technologies, using the contingent valuation method (CVM). We find that most farmers do not utilize innovative CSA technologies. The CSA technologies most preferred by farmers are drip irrigation, drainage management, and weather-based rice agro-advisories. At the same time, they are willing to pay $115.63 annually for CSA, notably: $40.25 for knowledge-smart, $31.02 for water-smart, $17.97 for nutrient-smart, $17.72 for weather-smart, $6.82 for carbon-smart, and $1.85 for energy-smart technologies. Age, gender, access to credit, education, extension visit, farm size, and social group membership are significant predictors of farmers’ choices.Key policy insightsIdentifying and prioritizing farmers’ preferred CSA technologies would enable them and other relevant stakeholders to make investment decisions.Given farmers’ low willingness to pay for CSA technologies, incentives such as subsidies and interest-free loans should be provided to boost uptake.Committing a substantial amount of money to credit facilities would help scale up CSA technologies’ adoption.A robust framework on the revitalization of agricultural extension services would increase extension visits, helping to scale up farmers’ adoption of CSA technologies.

Suggested Citation

  • Ifeoma Q. Anugwa & Elizabeth A. Onwubuya & Jane M. Chah & Chisom C. Abonyi & Eleanya K. Nduka, 2022. "Farmers’ preferences and willingness to pay for climate-smart agricultural technologies on rice production in Nigeria," Climate Policy, Taylor & Francis Journals, vol. 22(1), pages 112-131, January.
    • Handle: RePEc:taf:tcpoxx:v:22:y:2022:i:1:p:112-131
    DOI: 10.1080/14693062.2021.1953435
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    Citations

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    Cited by:

    1. Usman Alhassan & Emmanuel Umoru Haruna, 2024. "Rural farmers’ perceptions of and adaptations to climate change in Sub-Saharan Africa: Does climate-smart agriculture (CSA) matter in Nigeria and Ethiopia?," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 26(3), pages 613-652, July.
    2. Lee, Juyong & Cho, Youngsang, 2023. "Economic value of the development of nuclear power plant decommissioning technology in South Korea," Energy Policy, Elsevier, vol. 181(C).
    3. Mashi, Sani Abubakar & Inkani, Amina Ibrahim & Oghenejabor, Obaro Dominic, 2022. "Determinants of awareness levels of climate smart agricultural technologies and practices of urban farmers in Kuje, Abuja, Nigeria," Technology in Society, Elsevier, vol. 70(C).
    4. N’Banan Ouattara & Xueping Xiong & Chenguang Guo & Lacina Traoré & Zié Ballo, 2022. "Econometric Analysis of the Determinants of Rice Farming Systems Choice in Côte d’Ivoire," SAGE Open, , vol. 12(2), pages 21582440221, May.
    5. Ude Kingsley David & Okoye C. U. & Arene C. J. & Osuafor Ogonna Olive & Umeh Onyebuchi Jonathan & Udemba Klinsmann Uche & Kalu Uche Felix, 2024. "Analysis of Effluent Management among Medium and Large Scale Agro-Allied Industries in South West, Nigeria," Journal of Agriculture and Crops, Academic Research Publishing Group, vol. 10(1), pages 30-41, 01-2024.
    6. Xiance Sang & Chen Chen & Die Hu & Dil Bahadur Rahut, 2024. "Economic benefits of climate-smart agricultural practices: empirical investigations and policy implications," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 29(1), pages 1-21, January.

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