Technology Adoption Decisions under Irreversibility and Uncertainty: An Ex Ante Appproach

Amy Purvis, William G. Boggess, Charles Moss and John Holt

American Journal of Agricultural Economics, 1995, vol. 77, issue 3, 541-551

Abstract: Empirical results demonstrate that uncertainty about costs and requirements for environmental compliance is an important determinant of dairy producers& investment behavior. Ex ante forecasting of how uncertainty and irreversibility are likely to affect producers& responsiveness to agricultural technologies has implications for the design of environmental policies. Simulation modeling methods are described. The empirical analysis focuses on Texas producers& propensity to adopt free-stall dairy housing. Free-stall investments offer advantages for both productivity-augmentation and pollution abatement, yet uncertainty and irreversibility are obstacles to adoption. Implications of this ex ante paradigm for policy design and implementation are discussed.

Date: 1995
References: Add references at CitEc
Citations: View citations in EconPapers (45)

Downloads: (external link)
http://hdl.handle.net/10.2307/1243223 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
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: https://EconPapers.repec.org/RePEc:oup:ajagec:v:77:y:1995:i:3:p:541-551.

Access Statistics for this article

American Journal of Agricultural Economics is currently edited by Madhu Khanna, Brian E. Roe, James Vercammen and JunJie Wu

More articles in American Journal of Agricultural Economics from Agricultural and Applied Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().