Modeling adoption of innovations in agriculture using discrete choice models

This paper is concerned with the development of varieties and fertilization techniques of greenhouse tomatoes, and their spatial diffusion in the northwestern region of the Negev in Israel. The main objective of the paper is to identify the factors affecting the farmers’ decision to adopt innovations and the factors inducing the process of knowledge-diffusion in the rural region. The approach adopted is the use of discrete choice models based on random utility theory. Results of the empirical analysis when applying the disaggregate Logit Model indicate that the regional, local and individual attributes have a significant bearing on the farmers’ decision-making process in regard to choosing among alternative tomato varieties and fertilization techniques. The findings indicate that the models constructed for this study may be used as a planning tool for the purpose of evaluating the effect of different factors on the spatial diffusion of innovations in rural regions. The results of the research could also assist decision-makers in formulating development policies for rural regions. Keywords: Spatial diffusion; discrete choice models; greenhouse tomatoes; nested logit