Understanding the value of the externalities associated with a technology is crucial to correctly estimate the welfare benefits of public policies and investments. Suboptimal adoption rates of agricultural technologies in low-income countries partly result from farmers not fully internalizing the positive externalities of adoption. This paper designs an experiment to measure the monetary value of the externalities of an agricultural pest-control technology; it elicits a farmer’s willingness-to-pay for another farmer to adopt the technology, as a measure of the externalities generated by the other farmer.
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