@phdthesis{Luck2021, author = {Luck, Nathalie}, title = {Transformation towards a more sustainable agricultural system in Indonesia: Empirical essays on the role of information and endorsement}, url = {http://nbn-resolving.de/urn:nbn:de:bvb:739-opus4-10037}, school = {Universit{\"a}t Passau}, pages = {x, 152 Seiten}, year = {2021}, abstract = {In many cases, transitioning towards sustainable agricultural production requires farmers to change their practices. These changes can include the adoption of sustainable agricultural practices, water-saving, or the disadoption of excessive chemical input use or land burning. Policy makers interested in making agricultural production more sustainable need to understand what encourages the uptake of sustainable practices and what is effective in reducing unsustainable practices. This thesis seeks to understand whether and how information provision and endorsement can contribute to the transition towards more sustainable agricultural systems. The thesis consists of three self-contained papers. The first paper explores the potential of religious endorsement for inducing pro-environmental behaviour and encouraging the disadoption of fire as an agricultural practice, thereby preventing forest fires. The paper analyses the impact of a fatwa (an Islamic religious ruling) on reducing fire incidence in Indonesia. Results indicate that fire incidence decreased in Muslim majority villages following the issuing of the fatwa. For the post-fatwa period from August 2016 to December 2019, the average monthly effect amounts to around 2.2 prevented fire events per village. This is a considerable effect. The paper concludes that fire prevention efforts, and potentially other environmental conservation efforts, could benefit significantly from support by religious institutions and stakeholders. The second paper investigates the role of information provision and training for the adoption of organic farming practices in Java, Indonesia. We use a randomised controlled trial (RCT) to identify the impact of a three-day hands-on training in organic farming for smallholder farmers. We find that the training intervention increased the adoption of organic inputs and had a positive and statistically significant effect on farmers' knowledge and perceptions of organic farming. Overall, our findings suggest that information constraints are a barrier to the adoption of organic farming, as information provision increased the use of organic farming practices. The third paper investigates whether urban and suburban Indonesian consumers are willing to pay a price premium for organic food. We use an incentive-compatible auction based on the Becker-DeGroot-Marschak (BDM) approach to elicit consumers' WTP. We further study the effect of income and a randomised information treatment about the benefits of organic food on respondents' WTP. Estimates suggest that consumers are willing to pay a price premium for organic rice, on average 20 percent more than what they paid for conventional rice outside of our experiment. However, our results also indicate that raising consumers' WTP further is complex. Showing participants a video about the health or, alternatively, environmental benefits of organic food was not effective in further raising WTP. Exposure to the environmental benefits video was, however, effective in raising stated organic food consumption intentions.}, subject = {Landwirtschaft}, language = {en} } @article{GrimmLuckSteinhuebel2022, author = {Grimm, Michael and Luck, Nathalie and Steinh{\"u}bel, Franziska}, title = {Consumers' willingness to pay for organic rice: Insights from a non-hypothetical experiment in Indonesia}, series = {Australian Journal of Agricultural and Resource Economics}, volume = {67}, journal = {Australian Journal of Agricultural and Resource Economics}, number = {1}, publisher = {Wiley}, address = {Hoboken}, doi = {10.1111/1467-8489.12501}, url = {http://nbn-resolving.de/urn:nbn:de:bvb:739-opus4-12412}, pages = {83 -- 103}, year = {2022}, abstract = {As in many high-income countries, there is increasing awareness towards organic farming in many low- and middle-income countries. Sustained local demand is an essential requirement for further adoption of organic farming by smallholders, who typically have only limited access to export markets. Until now, only few studies have explored the local willingness to pay (WTP) for organic products in low- and middle-income countries in real purchase situations. This paper analyses the consumers' WTP for organic rice in urban and suburban Indonesia using an incentive-compatible auction based on the Becker-DeGroot-Marschak (BDM) approach. We further study the effect of income and a randomised information treatment about the benefits of organic food on respondents' WTP. Estimates suggest that respondents are willing to pay an average price premium of 20\% compared with what they paid for conventional rice outside our experiment. However, our results also indicate that raising consumers' WTP further is complex. Showing participants a video about health or, alternatively, environmental benefits of organic food was not effective in further raising WTP. The results can be used as a basis for the design of alternative awareness measures to increase knowledge, interest and demand for organic food.}, language = {en} }