Farmers' Decision to Adoption of Modern Irrigation Systems Under Risk Condition: Application of Stochastic Efficiency With Respect to a Function Approach

نویسندگان

چکیده

To effectively tackle the issue of increasing irrigation water scarcity, farmers need to convert modern systems with lower use while achieving higher yields and profitability. Unlike government support cover a proportion modernizing costs by public subsidies in Iran, adoption rate is low. This due farmers' uncertainty about trade-off between benefits from yield improvement added production costs. The historical gross margin barley, wheat, forage corn, tomato under surface, drip, permanent sprinkler, semi-permanent sprinkler was generated using simulation survey-based data for published prices over 5-year period (2009–2015). stochastic dominance (SD) efficiency respect function (SERF) approaches were used evaluate risk various main crops Bakhtegan Basin. Estimating certainty equivalent (CE), we ranked alternatives at different absolute risk-aversion coefficient (r ) levels. findings show that drip corn have CE values all levels coefficient; however, preferred system barley wheat varies r . Moreover, estimated premiums revealed risk-neutral would pay move surface more efficient systems, whereas risk-averse be paid tendency change their system. important policy implication these results can consider justifying subsidy allocation manner induces risk-efficient systems.

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ژورنال

عنوان ژورنال: Frontiers in water

سال: 2022

ISSN: ['2624-9375']

DOI: https://doi.org/10.3389/frwa.2022.931694