Learning from your neighbours: How spatial interactions affect the adoption of drought-tolerant varieties in China?

Abstract

The adoption of improved crop varieties, such as drought-tolerant varieties, plays a crucial role in addressing climate change. In this study, we explore how and to what extent spatial interactions between farmers affect farmers’ decision to adopt drought-tolerant wheat varieties (DTWVs), using data collected from rural households in China. A spatial Durbin probit model is utilized to identify the spatial patterns in DTWVs adoption. Results show that spatial dependence exists in DTWVs adoption. Spatial dependence significantly increases wheat farmers’ decision of DTWVs adoption, and the spatial effects mainly arise from the neighbors’ adoption decision and information spillover via smartphone use and extension service contacts. Further analysis reveals that DTWVs adoption improves farm performance by increasing both wheat yields and farm profits significantly. Our findings underscore the necessity of considering spatial interactions between farmers when designing and promoting innovative agricultural technologies in rural areas.