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The Adoption of Carbon Farming – Modeling Farmers' Decisions

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Chapter 4 elaborates under which conditions local farmers will most likely participate in carbon finance projects. The analysis of aspects determining participation is a necessary first step in the study of potential project impacts. Since LULUCF projects in the CDM as well as PES projects are recent, no specific literature on participation decisions exists so far. But literature on participation / adoption in other rural programs (e.g., the introduction of new agricultural technologies) can provide insights on parallels. Therefore, some results of a broader literature review on agricultural technology adoption are presented. This is presented subsequent to a brief introduction on the theory of adoption. In chapter 4 we finally develop a more specific theoretical model for the adoption of carbon farming that is based on a) the reviewed body of literature and b) the specific situation of the case study presented in chapter 3. At the end of the chapter, distinct factors determining participation are defined, which are leading to the subject of chapter 5, namely structural equation modeling.

Keywords: The Adoption of Carbon Farming – Modeling Farmers' Decisions

Document Type: Research Article

Publication date: January 1, 2009

More about this publication?
  • Rural Development through Carbon Finance
    In a timely contribution to the international discussion of the post-Kyoto climate regime this study hypothesizes that Clean Development Mechanism (CDM) projects in the land use and forestry sector are an efficient instrument for climate change mitigation that contributes to rural development and poverty alleviation at the same time. To this end, the study analyzes socio-economic aspects of a forestry project established under the CDM rules considering an East African case study exemplarily. An agricultural household survey in Tanzania delivered the empirical data for the structural equation model at the center of the analysis. Looking at different farm assets it is shown that the benefits of land use-related climate projects go way beyond pure mitigation. They also have a positive impact on a very broad asset base on which poor farm households depend. Hence, the current CDM only allowing for afforestation and reforestation projects is far too restricted to deliver on its twin objective.
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