Efficient use of Water Resources in Vineyards: A Recursive joint Estimation for the Adoption of Irrigation Technology and Scheduling

Water constraints are becoming a major restriction for different economic sectors. The agricultural sector is one of the most affected, but according to experts, the use of irrigation technologies and scheduling can keep productivity high while diminishing the use of water resources. Although irrigation technology is available, for various reasons the rate of adoption is rather low. This article uses a recursive bivariate probit model to examine the impact of social, human, and physical capital on the adoption of irrigation technology and scheduling. The study was conducted in vineyard farms in the Maule and O'Higgins regions of Chile, from which a sample of 452 large, medium, and smallholders was drawn. The average planted area is 37 hectares, ranging from 0.5 to 810 hectares. The adoption rate of irrigation technology is 43 % and for scheduling instruments, 23 %. Results show that adopting irrigation technology increases the chance of adopting scheduling by 31 % and that these adoption decisions are jointly made. While size of the vineyard is relevant in irrigation technology adoption, it is not for scheduling and, in contrast, the use of the Internet is relevant for adopting scheduling but not for irrigation technology. A relevant result is that networks and trust are important factors in explaining the adoption of both technologies.