Willingness to pay for a new agricultural technology: Evidence from Vietnam

This study investigates the effectiveness of framing nudges in increasing farmers’ willingness to pay (WTP) for a microbial product that accelerates rice straw decomposition and reduces the need for open-field burning. Rice straw burning is a significant contributor to air pollution and greenhouse gas emissions in Vietnam, and the adoption of sustainable alternatives remains low despite their availability. We will conduct a lab-in-field experiment with 780 rice farmers across three provinces in the Red River Delta (RRD). Farmers will be randomly assigned to receive one of three informational treatments: (1) private benefits only (e.g., soil health, yield, profits); (2) private plus local community benefits (e.g., air quality, health); (3) private plus national-level benefits (e.g., climate goals, national pride). We will elicit incentivized WTP for the product under each frame using the multiple price list method. Further, we will ask farmers to predict the most common purchase decisions of other farmers in their commune. This incentivized belief elicitation allows us to explore perceived social norms and their alignment with actual behavior. Findings from the study will inform a larger randomized controlled trial on the adoption of the microbial product.