Essays on the adoption and impacts of sustainable agricultural practices in Vietnam
Creators: name: PHAM, Giang
Publisher: name: RMIT University
Year: 2024
Subjects: classificationCode: 300210
subject: Sustainable agricultural development
classificationCode: 380101
subject: Agricultural economics
classificationCode: 380106
subject: Experimental economics

description: Conventional agricultural methods are placing considerable strain on the environment in developing countries. This problem can be ameliorated through the adoption of Sustainable Agricultural Practices (SAPs), which can bring economic, ecological and social benefits for farmers, consumers and the overall economy. However, the adoption rates of SAPs remain low in many developing countries. It is therefore vital to understand the key factors leading to the adoption and impacts of SAPs in the context of different countries. The agricultural sector in Vietnam is experiencing low rates of of growth, unreliable product quality and food safety (World Bank, 2016) and is contributing to the poor health of farmers and consumers. The sector which is mainly dependent on an increase in cropping areas, more intense use of inputs and natural resources, is claimed to be not sustainable. Thus, this study aims to encourage the adoption of SAPs among smallholder farmers in Vietnam by examining the factors affecting farmers' adoption of SAPs and the impacts of SAPs on profit. 

The first empirical chapter of the thesis examines the determinants of SAP adoption using data from the Vietnam Access to Resources Household Survey (VARHS). It contributes to the existing literature on ex-post SAP adoption analysis by employing a random effects probit model with the Mundlak approach, as well as a fixed effects linear probability model to control for household- and plot-level heterogeneity and to avoid the incidental parameters problem. Panel data for approximately 14,000 plots are analysed for the period 2008 to 2016. Findings suggest that gaining knowledge from extension agents and learning from peers are positively associated with adoption decisions. Farmers' understanding of the problems and quality of the land are also important determinants of SAP adoption in Vietnam.

The second empirical chapter explores the intrinsic attributes of SAPs that coffee farmers in the Central Highlands of Vietnam value most. Conducting an ex-ante study via choice experiments helps build an understanding of farmers' SAP preferences, thereby assisting with the identification of strategies to encourage further adoption of SAPs in Vietnam. Two discrete choice experiments are conducted. The first uses pairwise rankings and the second uses choice sets. Cluster analysis is used to examine the pairwise ranking data while generalised multinomial logit is used to analyse the choice set data. The results, which are consistent across the two approaches, reveal that coffee farmers in Vietnam have the strongest preference for SAPs that can bring them higher profit and lower risk of output loss. Also important to them are the environmental benefits, the level of additional daily effort and the time required to set up the SAP.

The third empirical chapter of the thesis uses the panel VARHS data to examine the impacts of adopting different SAP packages. This study uses multinomial endogenous switching regressions with an instrumental variable to reduce potential biases in impact evaluation that previous studies have not fully addressed. Results confirm that if farmer adopts SAPs, it may raise his net profit per hectare by about 4 million VND per ha per year, whereas the agricultural income per hectare increases by about 4-6 million VND/ha/year. Moreover, the joint adoption of multiple SAPs brings higher benefits (of about 2 - 4 more million VND per ha per year) than single SAP adoption. These findings suggest that policymakers and related stakeholders should focus on promoting the adoption of a combination of SAPs.