Guaranteed storage? Risk and credit constraints in the demand for postharvest technology

Benjamin Schwab and Jisang Yu

Oxford Economic Papers, 2025, vol. 77, issue 2, 289-309

Abstract: Uninsured risk is often cited to explain the lagging adoption of new agricultural technologies in low-income regions. However, insurance interventions suffer from poor take-up. We test whether bundling a new product–hermetic storage bags–with a warranty can serve as a viable alternative. We compare the warranty to a credit intervention and a control using an incentivized auction in rural Bangladesh. We find the warranty had no impact on demand. Providing the bags on credit significantly increased willingness-to-pay, and machine learning estimates indicate credit may have raised the demand for the most marginal farmers. Warranties failed to stimulate demand along any dimension.

Keywords: risk; credit; technology adoption; postharvest practices (search for similar items in EconPapers)
JEL-codes: O12 O13 O33 (search for similar items in EconPapers)
Date: 2025
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