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Abstract

Water shortage is likely intensified by climate change. Although advanced irrigation technologies and agricultural water management practices are widely promoted, farmers’ adoption behavior is not well understood in the climate change context. This study helps fill this gap by assessing how climate risk affects such adoption. We construct moment-based climate risk measures that better reflect its volatility and extremes and apply them in multiple discrete choice modeling procedures. We also extend existing literature focusing solely on irrigation technologies to include conservation practices such as the Best Management Practices (BMPs), thereby providing a more complete picture of conservation practices. Jointly using the Arkansas subset of USDA Farm and Ranch Irrigation Survey and Census of Agriculture over years and multiple climate records, we find climate risk plays a role in the adoption of advanced irrigation technologies and BMPs, and suggest the policy relevance of the consideration of climate risk in understanding farmers’ technology adoption.

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