Understanding Producers’ Motives for Adopting Sustainable Practices: The Role of Expected Rewards, Risk Perception, and Risk Tolerance

European Review of Agricultural Economics, Jan 2016

Posted: 19 Jul 2016

See all articles by Andrés Trujillo-Barrera

Andrés Trujillo-Barrera

Wageningen UR

Joost M. E. Pennings

Maastricht University; Wageningen UR; University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics

Dianne Hofenk

Independent

Date Written: January 17, 2016

Abstract

This paper examines producers’ motives underlying the adoption of sustainable practices. In particular, we focus on expected economic, social, and personal rewards, and examine the role of producers’ risk perception and risk tolerance. Results from personal computer-guided interviews with164 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, higher income and tax benefits have a significant a positive relationship with adoption. Other characteristics of the firm and the owner, such as leverage and education, do not seem to play a role.

Keywords: Motives, Adoption of Sustainable Practices, Expected Rewards, Risk Perception, Risk Tolerance

Suggested Citation

Trujillo-Barrera, Andrés and Pennings, Joost M. E. and Hofenk, Dianne, Understanding Producers’ Motives for Adopting Sustainable Practices: The Role of Expected Rewards, Risk Perception, and Risk Tolerance (January 17, 2016). European Review of Agricultural Economics, Jan 2016, Available at SSRN: https://ssrn.com/abstract=2810795

Andrés Trujillo-Barrera

Wageningen UR ( email )

Hollandseweg 1
Wageningen, 6706KN
Netherlands

Joost M. E. Pennings (Contact Author)

Maastricht University ( email )

P.O. Box 616
Maastricht, 6200MD
Netherlands

HOME PAGE: http://marketing-finance.nl/cv/cvpennings.pdf

Wageningen UR ( email )

Hollandseweg 1
Wageningen, 6706KN
Netherlands

HOME PAGE: http://marketing-finance.nl/cv/cvpennings.pdf

University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics

1301 W. Gregory Drive
326 Mumford Hall MC-710
Urbana, IL 61801
United States
217-244-1284 (Phone)
217-333-5538 (Fax)

HOME PAGE: http://marketing-finance.nl/cv/cvpennings.pdf

Dianne Hofenk

Independent ( email )

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
206
PlumX Metrics