Heterogeneous impacts of information technology adoption on pesticide and fertiliser expenditures: Evidence from wheat farmers in China

Wanglin Ma and Hongyun Zheng

Australian Journal of Agricultural and Resource Economics, 2022, vol. 66, issue 1, 72-92

Abstract: This study examines the impacts of mobile information technology adoption on agrochemical expenditures, using data collected from 551 wheat farmers in China. Unlike previous studies that analyse a homogeneous relationship between the adoption of information technologies and farm input use, in this study, an instrumental variable quantile regression approach is utilised to capture the heterogeneous impacts of smartphone use on pesticide and fertiliser expenditures. Findings reveal that smartphone use affects pesticide and fertiliser expenditures heterogeneously, and its impacts on pesticide expenditure are larger than those on fertiliser expenditure. Specifically, at the lowest 20th quantile, smartphone use significantly increases pesticide expenditure by 33 per cent and fertiliser expenditure by 18 per cent. However, at the higher 60th and 80th quantiles, smartphone use significantly decreases pesticide expenditure by 36–39 per cent and fertiliser expenditure by 14–19 per cent. Our findings suggest that guiding farmers’ agrochemical usage behaviours through smartphone‐based information intervention can be a practical strategy to help reduce the excessive usage of chemical pesticides and fertilisers and preserve the environment and human health.

Date: 2022
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