Economics at your fingertips  

Role of Farmers’ Risk and Ambiguity Preferences on Fertilization Decisions: An Experiment

Camille Tevenart and Marielle Brunette ()
Additional contact information
Camille Tevenart: Université de Lorraine, Université de Strasbourg, AgroParisTech, CNRS, INRAE, BETA, 54000 Nancy, France

Sustainability, 2021, vol. 13, issue 17, 1-27

Abstract: In the context of climate change, the agricultural sector offers a large number of mitigation possibilities through diverse practices, such as the reduction of pollutant inputs. However, most farmers do not adopt the mitigation practices recommended, including the reduction of nitrogen fertilization. At the same time, various uncertainties characterize agricultural production, so that the farmer’s risk and ambiguity preferences may be potential determinants to the adoption of mitigation practices. In this context, the objective of the article is to determine if the farmer’s risk and ambiguity preferences explain (or not) the fertilization decision. A questionnaire was submitted to French farmers to elicit risk and ambiguity preferences through lottery choices, and ask questions about fertilization. Two regressions were realized, the first to explain the total fertilization and the second to identify the determinants of the first fertilization application. The results reveal that respondents were mostly risk-averse and ambiguity-neutral. In addition, risk and ambiguity aversion impact fertilization practices through diverse drivers in opposite directions. Indeed, being risk-averse is associated with a lower level of total fertilization, whereas ambiguity aversion has a positive and significant impact on the level of fertilization at the first application. This last result highlights the need to reduce the uncertainty farmers face.

Keywords: uncertainty; agriculture; nitrogen; mitigation (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link) (application/pdf) (text/html)

Related works:
Working Paper: Role of Farmers’ Risk and Ambiguity Preferences on Fertilization Decisions: An Experiment (2021)
Working Paper: Role of farmers' risk and ambiguity preferences on fertilization decisions: An experiment (2019) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Sustainability is currently edited by Ms. Elaine Li

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().

Page updated 2023-09-20
Handle: RePEc:gam:jsusta:v:13:y:2021:i:17:p:9802-:d:626706