Agric. Econ. - Czech, 2025, 71(1):14-26 | DOI: 10.17221/296/2024-AGRICECON

How does climate shock affect technology adoption in rice production?Original Paper

Thai Phan Nguyen ORCID...1, Duc Kien Nguyen ORCID...1, Quang Dung Truong ORCID...2
1 Faculty of Economics and Development Studies, University of Economics, Hue University, Hue City, Vietnam
2 The Business School, RMIT University, Ho Chi Minh, Vietnam

The objective of the study is to determine the impact of shock from climate change, such as drought and flood, on various technology adoptions in rice production in Vietnam. This study utilised VARHS (The Vietnam Access to Resources Household Survey) panel data from 2012 to 2018 and employed regression analysis following the application of propensity score matching (PSM) to address potential selection bias caused by drought and flood shocks. The findings indicated that households tend to adopt the improved variety of rice and organic fertilisers since households suffer the shock from the drought. Another finding showed that households used more chemical fertiliser and reduced the probability of using improved seeds in rice production since the household was affected by floods. Based on the findings, policies should prioritise promoting and implementing environmentally friendly farming methods that are customised to address specific climate-related difficulties.

Keywords: drought; flood; innovation; propensity score matching; risk uncertainty

Received: August 19, 2024; Revised: November 15, 2024; Accepted: November 25, 2024; Prepublished online: January 24, 2025; Published: January 30, 2025  Show citation

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Phan Nguyen T, Nguyen DK, Truong QD. How does climate shock affect technology adoption in rice production? Agric. Econ. - Czech. 2025;71(1):14-26. doi: 10.17221/296/2024-AGRICECON.
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