Social network impacts, economic viability, and productivity effects of climate – smart agriculture practices: Evidence from the laser land leveling technique in paddy production in Vietnam

Abstract

This research seeks to furnish empirical evidence concerning the economic efficiency of laser land leveling technology and to analyze both private and social benefits derived from its application. Furthermore, it aims to investigate the channels through which spillover effects occur among rice farmers in the Mekong Delta. The theoretical underpinnings and methodological approaches of this dissertation are elucidated in Chapters Two and Three. To examine farmers' decision-making processes regarding technology adoption and the consequent outcomes in rice cultivation, the frameworks of Random Utility Theory (RUT) and Production Theory are employed. The investigation into the outcomes and impacts of adopting Laser Land Leveling (LLL) technology utilizes a variety of methods including experimental auction techniques, randomized controlled trials, life cycle assessment, and cost-benefit analysis, complemented by the implementation of survey files. Additionally, the foundational theories for analyzing the spillover effects of technology adoption are grounded in Social Learning Theory and Peer Effects Theory. The dissertation consists of three scientific papers aimed at analyzing the technical efficiency, economic efficiency, and diffusion of adopting LLL. The initial study employs the Becker-DeGroot-Marschak (BDM) auction method and a randomized controlled experiment to assess the adoption intentions and actual impact of LLL technology. Results indicate that fields utilizing LLL technology achieve significant reductions in phosphorus and potassium fertilizers at a 5% significance level, and nitrogen at a 10% significance level. Additionally, substantial reductions are noted in land preparation machinery hours, fuel for irrigation pumping, and water usage—all significant at a 1% level. An increase in productivity of 492.136 kg/ha is observed in fields adopting LLL technology compared to control fields, underscoring the efficacy of LLL technology in reducing input costs and enhancing rice productivity, thereby supporting broader adoption strategies in rice cultivation. The second paper evaluates the private and social costs and benefits of adopting LLL technology, drawing from the local average impacts and associated costs. The analysis reveals significant private and social advantages, with a payback period for laser land leveling investments under one year and a cost-benefit ratio of 4.6, indicating that benefits greatly surpass costs. Notably, the social benefits include reduced fuel consumption and consequent decreases in greenhouse gas emissions, valued at $15.36 per hectare. These findings substantiate the promotion of policies that encourage the adoption of innovative technologies for sustainable agricultural practices. The third paper investigates the diffusion of technology through farmer networks and the influence of information sources on the willingness to pay for LLL technology. Findings demonstrate a significant peer effect at the 1% significance level, highlighting the impact of social learning about cost savings and productivity gains. The size of each farmer's network emerges as a critical factor. Additionally, information from interactions with other farmers or direct observation significantly influences willingness to pay, impacting adoption decisions at a 5% significance level. These results recommend leveraging social networks and extension policies to promote the adoption of new technologies in agricultural production. Drawing on the insights derived from the three component studies discussed previously, the following policy recommendations are proposed: the formulation of policies that promote smart agriculture practices, the organization of workshops and pilot programs, the facilitation of peer learning and demonstration projects, and an emphasis on research and development initiatives