Yuyuan Che, a postdoctoral research scholar, was honored as the winner of the AAEA Institutional and Behavioral Economics Section Graduate Student Paper Competition at the 2022 AAEA Annual Meeting in Anaheim, California on July 31.
“Assessing Peer Effects and Subsidy Impacts in Conservation Technology Adoption: Application to Grazing Management Choices,” co-authored by Hongli Feng and David A. Hennessy, is one chapter of Che’s dissertation defended in August 2021.
This paper assesses whether and to what extent peer effects can affect the adoption of rotational grazing and how subsidies affect adoption in the presence of peer effects by developing a theoretical framework and applying a simultaneous-equations model to farm-level survey data.
“We find strong evidence of significant peer effects on rotational grazing adoption,” she said. “This implies that incentive policies will have multiplier effects on adoption through the peer networking route.”
Che believes these findings will help promote efficient policy designs aimed at obtaining the greatest environmental benefits conditional on limited resource budgets.
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