Journal

Korea Agricultural Economics Association

Title How Weather Conditions Drive Technology Adoption in Agriculture: Implications for Farm Revenue
Author Hyun Ju Park, Sang Hyeon Lee
Paper Information Vol.65 No.3 (2024-9) Page 151~179
File KJAE(2024-Vol65No03)-English-02.pdf
Abstract Innovative agricultural technologies offer a chance to combat weather conditions's significant
effects on food security. However, the effectiveness of technological innovation depends on farmers'
participation. Otherwise, its societal benefits remain unrealized. To promote technology adoption
effectively, understanding why farmers choose to adopt or not is crucial. Previous research primarily
focused on farm-specific characteristics or generic technology acceptance theories emphasizing
social factors. This study goes further by considering the natural environmental factors of weather
conditions. We employ endogenous treatment regression to correct selection bias and investigate
whether weather conditions prompts greenhouse(GH) and smart farm(SF) adoption among Korean
chili pepper farms. Using this method, we estimate the Average Treatment Effect on the Treated
to reveal technology adoption's revenue-enhancing effects for farmers using the 2020 Census of
Agriculture, Forestry, and Fisheries of South Korea. The findings show that including abnormal
climate conditions as a control for endogeneity results in a more significant revenue increase from
technology adoption than when these conditions are not considered.