Risk preferences and other (ignored) behavioral factors in fertilizer management decisions: A systematic literature review

Fertilizer management decisions entail significant economic and environmental implications at the farm and global levels. However, both underuse and overuse of fertilizers often occur, deviating from the economically optimal use. This raises the question of why non-optimal fertilizer behavior persists. One possible explanation is the influence of behavioral factors on farmers' decision-making processes. Therefore, we conducted a systematic review of behavioral factors in decision-making under risk and uncertainty, focusing on their association with fertilizer decisions in high-income countries. Fertilizer management decisions are inherently risky due to the presence of different sources of uncertainty, such as fertilizer prices, crop yields, and output prices. Our review of 64 peer-reviewed articles shows that most research focuses exclusively on farmers’ risk preferences, often using expected utility theory. Few notable exceptions incorporate broader behavioral considerations. Our findings highlight the need for future research that extends beyond risk preferences and incorporates non-standard decision theories into fertilizer decision models. This could help explain some of the non-optimal fertilizer behaviors observed in practice. Finally, we emphasize the importance of combining primary data-driven behavioral research with secondary data to create a more comprehensive understanding of fertilizer decision-making. These insights may be applicable to other decision-making within and beyond agriculture.