The role of peer effects on farmers’ decision to adopt unmanned aerial vehicles: evidence from Missouri

Abstract

This paper examines the role of peer effects on farmers’ decision to adopt Unmanned Aerial Vehicles (UAVs). This relationship is analysed by means of a Bayesian spatial autoregressive probit model applied to spatially explicit data describing the awareness, attitudes, and adoption of UAVs by 809 Missouri farmers. Results show that it is not only the farmers’ characteristics, awareness, and attitudes towards UAVs that affect adoption, but also the adoption behaviour and traits of neighbouring peers. Peer effects arise both from UAV adoption of nearby farmers and from spatial spillovers of farmers’ characteristics, awareness of UAV agricultural applications, expectations of economic and environmental benefits from UAV use and perceived neighbour privacy concerns in the use of UAVs.