Competitive Pressure and Technology Adoption: Evidence from a Policy Reform in Western Canada

Shon Ferguson and M. Rose Olfert

No 164658, Working Papers from Research Institute of Industrial Economics

Abstract: We estimate the impact of the removal of a railway transportation subsidy on the adoption of technology for Western Canadian farms, using a unique combination of Census and freight rate data. We exploit the large regional variation in these one-time freight rate increases in order to identify causal effects of increased competitive pressure. Using a difference-in differences methodology we find that higher freights rates – and hence lower farm gate prices – induced farmers to adopt new, more efficient production technology. We also find that farmers experiencing the greatest transportation cost increases also increased fertilizer usage and made significant land use changes.

Keywords: Agricultural and Food Policy; Crop Production/Industries; Institutional and Behavioral Economics; International Relations/Trade; Land Economics/Use; Livestock Production/Industries; Research and Development/Tech Change/Emerging Technologies (search for similar items in EconPapers)
Pages: 29
Date: 2013-11
New Economics Papers: this item is included in nep-agr and nep-eff
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https://ageconsearch.umn.edu/record/164658/files/Wp966.pdf (application/pdf)

Related works:
Journal Article: Competitive Pressure and Technology Adoption: Evidence from a Policy Reform in Western Canada (2016)
Working Paper: Competitive Pressure and Technology Adoption: Evidence from a Policy Reform in Western Canada (2013)
Working Paper: Competitive Pressure and Technology Adoption: Evidence from a Policy Reform in Western Canada (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:riiewp:164658

DOI: 10.22004/ag.econ.164658

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