Induced Innovation and Productivity-Enhancing, Resource-Conserving Technologies in Central America

Soil erosion is one of the main problems threatening agricultural productivity and small-scale farmers’ livelihoods in Central America. Based on two case studies from Guatemala and El Salvador, the adoption of soil conservation techniques by small-scale farmers and the supply of these technologies to farmers are investigated. The Induced Innovation Theory and Logit as well as Structural Equation Models with Latent Variables are utilized to explore farmers’ decisions with regard to these environmental innovations. Results demonstrate that technologies that combine productivity enhancing with resource conserving characteristics offer a solution to the overall low adoption of conservation practices observed in the region.