Modeling pecuniary and non -pecuniary objectives for adoption, and multiple technology adoption decisions

This thesis provides a fresh approach to understanding the farmer's technology choice problem. The approach combines general utility theory and the concept of technology bundling to model theoretical and practical complexities involved in technology adoption decisions. This is achieved by integrating aspects of the interactions between pecuniary and non-pecuniary motives for adoption in a way that is consistent with economic theory and sociological research.;The theoretical model of adoption shows that choice of technology depends on the signs and magnitudes of two, sometimes, opposing effects. The first effect is a pecuniary-effect. The second effect is a non-pecuniary effect. In most cases, adoption choices proved ambiguous. Hence, failure to incorporate all dimensions of the adoption process in adoption models can lead to misleading conclusions and inappropriate policies.;The econometric application focuses on the relative importance of pecuniary and nonpecuniary variables on adoption decisions and the effects of joint adoption decisions on estimation of adoption models. The results give an indication for the need to broaden the scope of the analysis of the farmer's technology choice problem beyond pecuniary variables. In particular, the beliefs held by farmers are found to have a positive and significant impact on their adoption choices. The results also reveal that, in cases of multiple technology adoption, the likelihood of joint adoption is generally high, providing an incentive to promote packages of agricultural technologies.