Working Paper BETA #2015-23

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Title : Farmers’ adoption of organic production.

Author(s) : Cuong Le Van, Nguyen To The

Abstract : The paper presents a theoretical model in order to figure out the farmer’s decisions of organic production adoption in agriculture. The decisions concern the allocation of lands for conventional and organic farming. This paper suggests that an entirely theoretical exercise can illuminate parts of this complex issue which the empirical work cannot reach. Our results might give some advice to policy makers when contemplating regulations in the agricultural sector. We show the importance of (i) the available quantity of land devoted to agricultural plants, (ii) the productivity of the organic products, (iii) the incentive mechanism and, finally (iv) the constraints on output of organic products. We consider this result as a good example of a new technology. In addition, the result of this article not completely confined in the agricultural production sector. It is possible to open up applications in other fields related to technology transfer.

Key-words : New technology, Adoption, Organic products, Conventional products, Productivity.

JEL Classification : O33; C33; Q22.