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Understanding producers’ motives to adopt sustainable practices: the role of expected rewards, risk perception, and risk tolerance

Author

Listed:
  • Hofenk, Dianne
  • Pennings, Joost
  • Trujillo-Barrera, Andres

Abstract

The purpose of this study is to examine producers’ motives underlying the adoption of sustainable practices. In particular, we focus on expected economic, social, and personal rewards, and examine the roles of producers’ risk perception and risk tolerance. Preliminary results from a survey of 164 hog producers show that the adoption of sustainable practices is affected by expected economic rewards, but not by social and personal rewards. Furthermore, perceived risk is a major barrier to the adoption of sustainable practices and risk tolerance strengthens the effect of expected economic rewards on the probability to adopt sustainable practices.

Suggested Citation

  • Hofenk, Dianne & Pennings, Joost & Trujillo-Barrera, Andres, 2014. "Understanding producers’ motives to adopt sustainable practices: the role of expected rewards, risk perception, and risk tolerance," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182740, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae14:182740
    DOI: 10.22004/ag.econ.182740
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    References listed on IDEAS

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    1. Hoffmann, Arvid O.I. & Post, Thomas & Pennings, Joost M.E., 2013. "Individual investor perceptions and behavior during the financial crisis," Journal of Banking & Finance, Elsevier, vol. 37(1), pages 60-74.
    2. Joost M.E. Pennings & Philip Garcia, 2001. "Measuring Producers' Risk Preferences: A Global Risk-Attitude Construct," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(4), pages 993-1009.
    3. Verbeke, W.J.M.I. & Belschak, F.D. & Bagozzi, R.P., 2004. "The Adaptive Consequences of Pride in Personal Selling," ERIM Report Series Research in Management ERS-2004-012-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
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    Cited by:

    1. Lina Yan & Xue Zhao & Dan Zhang & Jian Deng & Yuan Zhang, 2022. "Associated Factors of Pesticide Packaging Waste Recycling Behavior Based on the Theory of Planned Behavior in Chinese Fruit Farmers," Sustainability, MDPI, vol. 14(17), pages 1-11, September.

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