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Abstract

This article provides some first evidence of the welfare impacts of modern peanut varieties in China using a nationally representative survey. Propensity score matching is employed to address the choice nature of adoption and identify its impacts on peanut yield and multiple sources of income. Impact on income inequality is further simulated by comparing inequality measures using observed and counterfactual income distri-butions. It is found that adoption of modern peanut varieties significantly boosts peanut income and total household income, but increases income inequality. There-fore, household-level welfare improvement with agricultural technology adoption may not meet the governmental goals such as inequality reduction, and complementary policies are called for.

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