The Impact of Traditional Culture on Farmers’ Moral Hazard Behavior in Crop Production: Evidence from China
نویسندگان
چکیده
To obtain higher yields, farmers may excessively use pesticides when they grow crops (like rice, vegetables, or fruit), causing moral hazard behavior. This paper examines how Chinese farmers’ moral hazard behavior in crop production is influenced by their traditional culture. A semi-parametric logistic model is used to investigate the impact of Chinese traditional culture on farmers’ moral hazard behavior. The results reveal that Chinese traditional culture has a positive effect on ameliorating the farmers’ excessive use of pesticides in crop production, which leads to a moral hazard in agro-product safety. Specifically, when we control for extraneous variables, the probability of moral hazard decreases by 15% if farmers consider their traditional culture in their production decisions. Moreover, the probability of moral hazard decreases by 17% if farmers consider the traditional culture as a powerful restraint regarding the use of pesticides. Our analysis provides some supportive evidence on the effect of Chinese traditional culture on mitigating farmers’ excessive use of pesticides.
منابع مشابه
Assessing the moral hazard impact of mango farmers in Chabahar
ABSTRACT-The agricultural sector encompasses activities that are exposed to diverse risks. Risks in the agricultural sector are unavoidable but manageable. Crop insurance is a management tool in the agricultural sector. Crop insurance is a strategy to cope with the production risks of the agricultural sector and to secure farmers’ income in the future. Mango is a major horticul...
متن کاملEffectiveness of Agricultural Training Centers’ Curriculum in Promoting Adoption of Agricultural Technologies: Evidence from Small-Scale Potato Farmers in Nyandarua County, Kenya
Agricultural Training Centres (ATCs) promote crop and livestock development by providing extension information to farmers and serving as models of improved crop and livestock husbandry practices. Although potato farmers in Nyandarua County were trained on potato production technologies, their average yield was ≤16 tonnes per hectare compared to the national potential of 30 tonnes. This study th...
متن کاملEstimating the Effect of Crop Insurance on Input Use when Insured Farmers are Monitored
Monitoring is one way to alleviate the moral hazard problem rampant in crop insurance programs. Lacking data on monitoring, we test the effectiveness of monitoring on reducing moral hazard behavior indirectly. We first propose a theoretical model that takes into account several features of the Philippines crop insurance program. Our model predicts that if monitoring is effective, then crop insu...
متن کاملFarmers’ Perception Regarding Impact of Climate Change on Wheat Crop Production in Layyah District-Pakistan
Pakistan is at 28th amongst the countries that are going to be hurt badly by climate change. It falls in ten major wheat-producing countries of the world in terms of area, production and yield per hectare. Global warming, as a result of climate change, may negatively affect morphological characters of wheat. The present study was undertaken in district Layyah to find out the impact of climate c...
متن کاملDoes Participation in Farmer Field School Extension Program Improve Crop Yields? Evidence from Smallholder Tea Production Systems in Kenya
Agricultural Extension services are among the most important rural services in developing countries. The services are considered to be a key driver of technological change and productivity growth in agriculture. In Kenya, like in the rest of the developing economies, agricultural extension has largely been delivered through supply–driven approaches. Due to perceived low impact of agricultural e...
متن کامل