Innovation in Irrigation Technologies for Sustainable Agriculture: An Endogenous Switching Analysis on Italian Farms’ Land Productivity

Sabrina Auci () and Andrea Pronti

No 1220, SEEDS Working Papers from SEEDS, Sustainability Environmental Economics and Dynamics Studies

Abstract: This paper aims to analyse how the farmer’s choice on adopting innovative and sustainable irrigation systems such as water conservation and saving technologies (WCSTs), induced also by the climatic variability, would shape the economic resilience of the Italian agricultural farms by improving land productivity. A proper water management would increase efficiency in the agricultural activities by improving the use of water endowments and rising agricultural economic performances to address a sustainable development. We used an endogenous switching regression model considering two sources of endogeneity: the selection indicator and a continuous endogenous explanatory variable. By applying the control function method, a correlated random effects probit model for the selection equation and a correlated random effects model for the outcome equation are estimated in a panel data context based on a detailed micro-level dataset of all the Italian farms. Our results confirm that adopting WCSTs increases land productivity of adopters significantly.

Keywords: Water scarcity; Innovation; Micro irrigation; Sustainable agriculture; Italian farms (search for similar items in EconPapers)
Pages: 38 pages
Date: 2020-12, Revised 2020-12
New Economics Papers: this item is included in nep-agr, nep-cse, nep-eff and nep-env
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http://www.sustainability-seeds.org/papers/RePec/srt/wpaper/1220.pdf First version, 2020 (application/pdf)
http://www.sustainability-seeds.org/papers/RePec/srt/wpaper/1220.pdf Revised version, 2020 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:srt:wpaper:1220

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