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Consumption risk, farm characteristics, and soil conservation adoption among low‐income farmers in the Philippines
Author(s) -
Shively Gerald E.
Publication year - 1997
Publication title -
agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.29
H-Index - 82
eISSN - 1574-0862
pISSN - 0169-5150
DOI - 10.1111/j.1574-0862.1997.tb00471.x
Subject(s) - consumption (sociology) , soil conservation , probit model , probit , economics , agricultural economics , multivariate probit model , ordered probit , business , natural resource economics , agriculture , geography , econometrics , social science , archaeology , sociology
This paper investigates patterns of soil conservation adoption among low‐income farmers in the Philippines. A model is presented that focuses attention on the role ot assets and consumption risk in conservation adoption decisions. Results Iron, a reduced‐form probit model of adoption are reported. These econometric findings indicate that patterns of soil conservation adoption reflect relative risk considerations in addititon farm and household characteristics. Farm size, tenure security, labor availability, and land quality all exhibit a positive association with soil conservation adoption. In contrast, controlling on these and other household characteristics, the probability of adoption falls as consumption risk rises. These results underscore a need for greater sensitivity among policymakers to the role of consumption risk in influencing soil conservation decisions in low‐income settings.