The Determinants of Sustainable Land Management Adoption under Risks in Upland Area of Vietnam

This study investigates how the determinants including risk preference affect farmers’ decision to adopt SLM practices in upland areas of Vietnam. Empirical data collected through in-depth interviews with 200 farmers in Na Ri district, Bac Kan province were used. The factors affecting SLM adoption of farmers in Na Ri district were examined by the 2SLS or IV-Probit model. The estimated 2SLS regression indicated that there is a set of factors affecting SLM adoption, namely, relative risk aversion, farming experience, farm size, knowledge of SLM, membership in farmers’ organization, number of labors, and slope of farm land. Specifically, relative risk aversion had a negative effect on SLM practices adoption. The farmers who are less risk averse are more likely to adopt more SLM practices. This implies that reducing farmer’ risk exposure could promote SLM practices. This result is also helpful for policymakers to understand farmers’ behaviors and promote the diffusion of SLM practices across regions on a large scale.