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Willingness to Pay for Improved Planting Materials: An Application of Experimental Auction in Sri Lanka

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  • Athapaththu, Poorni
  • Weerahewa, Jeevika

Abstract

This study evaluated the willingness-to pay (WTP) for quality mango planting materials of TomEJC cultivar and identified the variables that affect WTP and degree of adoption of the technology. A second price sealed bid auction was conducted among villagers in Thirappane, Anuradhapura district, Sri Lanka to determine WTP and a Heckman two-stage model was estimated to ascertain the determinants of WTP. The respondents were randomly divided in to two groups and one group was given information on growing of TomEJC before the experiment was conducted. The socio-economic characteristics of the respondents were gathered using a structured questionnaire. The findings showed that the pooled sample's mean bid for TomEJC planting materials was LKR 287.03 per plant and the WTP of group that received advance notice was higher by LKR 151.62. Heckman model first-stage results indicated that the decision to adopt was positively and significantly influenced by household type, mango availability in the home garden, education level, and desire to begin commercial mango cultivation. The second-stage results revealed that WTP was positively & significantly influenced by information provision and average monthly income. These results suggest that the first step in promoting new technology will be to raise awareness targeting the non-poor farmers.

Suggested Citation

  • Athapaththu, Poorni & Weerahewa, Jeevika, 2024. "Willingness to Pay for Improved Planting Materials: An Application of Experimental Auction in Sri Lanka," IAAE 2024 Conference, August 2-7, 2024, New Delhi, India 344265, International Association of Agricultural Economists (IAAE).
    • Handle: RePEc:ags:cfcp15:344265
    DOI: 10.22004/ag.econ.344265
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    Keywords

    Community/Rural/Urban Development; Institutional and Behavioral Economics; Research and Development/Tech Change/Emerging Technologies;
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