ArticleAmerican journal of agricultural economics2019
Subsidies for Agricultural Technology Adoption: Evidence from a Randomized Experiment with Improved Grain Storage Bags in Uganda.
Article in American journal of agricultural economics, 2019. The graph could read no effect estimate from its abstract, so it casts no vote on the map. Cited by 9 papers.
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Who cites it
9 citing papers in PubMed.
- Seeding food security: Overcoming barriers to quality potato seed adoption among smallholders in Kenya.PloS one · 2026Article
- Money for operator: the impact of linked agricultural subsidy on incomes.Scientific reports · 2024Article
- Perceived Value, Government Regulations, and Farmers' Agricultural Green Production Technology Adoption: Evidence from China's Yellow River Basin.Environmental management · 2024Article
- What Influences Farmers' Adoption of Soil Testing and Formulated Fertilization Technology in Black Soil Areas? An Empirical Analysis Based on Logistic-ISM Model.International journal of environmental research and public health · 2022Article
- The Effectiveness Assessment of Agricultural Subsidy Policies on Food Security: Evidence from China's Poverty-Stricken Villages.International journal of environmental research and public health · 2022Article
- Contract farming, social trust, and cleaner production behavior: field evidence from broiler farmers in China.Environmental science and pollution research international · 2022Article
- Cost-benefit analysis of on-farm grain storage hermetic bags among small-scale maize growers in northwestern Ethiopia.Crop protection (Guildford, Surrey) · 2021Article
- Designing better input support programs: Lessons from zinc subsidies in Andhra Pradesh, India.PloS one · 2020Article
- What drives smallholder farmers' willingness to pay for a new farm technology? Evidence from an experimental auction in Kenya.Food policy · 2019Article
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Authors and funding
3 authors.
Funding
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Abstract
This article addresses the question of whether subsidizing an entirely new agricultural technology for smallholder farmers can aid its adoption early in the diffusion process. Based on a theoretical framework for technology adoption under subjective uncertainty, we implemented a randomized field experiment among 1,200 smallholders in Uganda to estimate the extent to which subsidizing an improved grain storage bag crowds-out or crowds-in commercial buying of the technology. The empirical results show that on average, subsidized households are more likely to buy an additional bag at commercial prices relative to the households with no subsidy who are equally aware of the technology. This suggests that under certain circumstances, such as when there is uncertainty about the effectiveness of a new agricultural technology, and the private sector market for the technology is weak or nascent, a one-time use of subsidy to build awareness and reduce risk can help generate demand for the new technology and thus crowd-in commercial demand for it. In this context, a subsidy can allow farmers to experiment with the technology and learn from the experience before investing in it. JEL codes: C23, C93, O33, Q12, Q18.
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