Do economic preferences and personality traits influence fertilizer use? Evidence from rice farmers in eastern China

Abstract

Environmental problems associated with the inappropriate use of fertilizers by rural smallholders are a growing concern in many countries. This paper contributes to the literature by examining whether risk preferences, time preferences, and personality traits are related to farmers’ use of synthetic and organic fertilizers. We rely on survey data collected from 815 farm households in three rice-producing provinces in eastern China in the empirical analyses. Results of OLS and rare events logistic regressions indicate that risk-seeking and patience are positively associated with the application of organic fertilizer in rice production but not with the intensity of synthetic fertilizer use. There is also no significant association between personality traits and (synthetic or organic) fertilizer use. In addition, personality traits do not mediate nor moderate the associations between economic preferences and fertilizer use. Robustness analysis using the two-stage probit least squares (2SPLS) model not only supports these findings, but also suggests that organic fertilizers complement the use of synthetic fertilizers and are only sporadically used in Chinese rice production. The insights gained in this study can provide important inputs for designing policies aimed at promoting sustainable agricultural intensification in China and elsewhere.