JOINT ADOPTION OF MULTIPLE TECHNOLOGIES: A DUAL, LATENT DEMAND APPROACH

Latent demand models can be used to overcome computational difficulties that frequently hamper empirical evaluation of relatedness in the adoption of multiple technologies. This paper develops and applies such an approach to a case involving agricultural soil and water conservation. The results indicate both complementarity and substitution. Own-price elasticities of demand for all technologies and cross-price elasticities of demand for related technologies are substantial. The results are used to derive implications for the design and implementation of cost sharing programs, which have been one of the primary policies used to address nonpoint source agricultural water pollution problems.