Understanding producers' motives for adopting sustainable practices

The role of expected rewards, risk perception and risk tolerance

Andres Trujillo-Barrera*, Joost M.E. Pennings, Dianne Hofenk

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

9 Citations (Scopus)

Abstract

Understanding the motives and risk attitudes of producers to engage in sustainable practices is important for policy-makers who wish to increase the likelihood of adoption and improve the design of incentives. This article examines the underlying motives of producers to adopt sustainable practices. We focus on expected economic, social and personal rewards and analyse the role of producers' financial risk perception and risk tolerance. Results from personal interviews with 164 hog producers show that the adoption of sustainable practices is affected by expected economic rewards but not by social and personal rewards. Further, while perceived risk is a barrier to the adoption of sustainable practices, risk tolerance is a positive moderator of the relationship between economic rewards and adoption. In addition, perceived tax benefits and turnover have a significant positive relationship with adoption, while education and age do not play a role.

Original languageEnglish
Pages (from-to)359-382
JournalEuropean Review of Agricultural Economics
Volume43
Issue number3
DOIs
Publication statusPublished - 2016

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risk perception
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Economics
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socioeconomics
interviews
education
Taxes
swine
Administrative Personnel
Motivation
Risk perception
Risk tolerance
Interviews
Education

Keywords

  • Motivation for adoption of sustainability
  • Risk perception
  • Risk tolera

Cite this

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title = "Understanding producers' motives for adopting sustainable practices: The role of expected rewards, risk perception and risk tolerance",
abstract = "Understanding the motives and risk attitudes of producers to engage in sustainable practices is important for policy-makers who wish to increase the likelihood of adoption and improve the design of incentives. This article examines the underlying motives of producers to adopt sustainable practices. We focus on expected economic, social and personal rewards and analyse the role of producers' financial risk perception and risk tolerance. Results from personal interviews with 164 hog producers show that the adoption of sustainable practices is affected by expected economic rewards but not by social and personal rewards. Further, while perceived risk is a barrier to the adoption of sustainable practices, risk tolerance is a positive moderator of the relationship between economic rewards and adoption. In addition, perceived tax benefits and turnover have a significant positive relationship with adoption, while education and age do not play a role.",
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Understanding producers' motives for adopting sustainable practices : The role of expected rewards, risk perception and risk tolerance. / Trujillo-Barrera, Andres; Pennings, Joost M.E.; Hofenk, Dianne.

In: European Review of Agricultural Economics, Vol. 43, No. 3, 2016, p. 359-382.

Research output: Contribution to journalArticleAcademicpeer-review

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AU - Trujillo-Barrera, Andres

AU - Pennings, Joost M.E.

AU - Hofenk, Dianne

PY - 2016

Y1 - 2016

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AB - Understanding the motives and risk attitudes of producers to engage in sustainable practices is important for policy-makers who wish to increase the likelihood of adoption and improve the design of incentives. This article examines the underlying motives of producers to adopt sustainable practices. We focus on expected economic, social and personal rewards and analyse the role of producers' financial risk perception and risk tolerance. Results from personal interviews with 164 hog producers show that the adoption of sustainable practices is affected by expected economic rewards but not by social and personal rewards. Further, while perceived risk is a barrier to the adoption of sustainable practices, risk tolerance is a positive moderator of the relationship between economic rewards and adoption. In addition, perceived tax benefits and turnover have a significant positive relationship with adoption, while education and age do not play a role.

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