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Farmers’ adoption of organic production

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  • Cuong Le Van
  • CNguyen To The

Abstract

The paper presents a theoretical model in order to figure out the farmer’s decisions of organic production adoption in agriculture. The decisions concern the allocation of lands for conventional and organic farming. This paper suggests that an entirely theoretical exercise can illuminate parts of this complex issue which the empirical work cannot reach. Our results might give some advice to policy makers when contemplating regulations in the agricultural sector. We show the importance of (i) the available quantity of land devoted to agricultural plants, (ii) the productivity of the organic products, (iii) the incentive mechanism and, finally (iv) the constraints on output of organic products. We consider this result as a good example of a new technology. In addition, the result of this article not completely confined in the agricultural production sector. It is possible to open up applications in other fields related to technology transfer.

Suggested Citation

  • Cuong Le Van & CNguyen To The, 2015. "Farmers’ adoption of organic production," Working Papers of BETA 2015-23, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    • Handle: RePEc:ulp:sbbeta:2015-23
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    More about this item

    Keywords

    New technology; Adoption; Organic products; Conventional products; Productivity.;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery

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