Farmers preference for improvement of rice straw management in mekong delta, vietnam

UNIVERSITY OF THE PHILIPPINES LOS BAÑOS Doctor of Philosophy in Agricultural Economics ONG QUOC CUONG FARMERS’ PREFERENCE FOR IMPROVEMENT OF RICE STRAW MANAGEMENT IN MEKONG DELTA, VIETNAM MATTY DEMONT, Ph.D Co-Adviser ISABELITA M PABUAYON, Ph.D Adviser Date: DECEMBER 2019 This dissertation can be made available to the general public This dissertation can be accessed only after consultation with the author and dissertation adviser This dissertation can be accessed only by those bound by confidentiality agreement YES - ONG QUOC CUONG MATTY DEMONT, Ph.D ISABELITA M PABUAYON, Ph.D FARMERS’ PREFERENCE FOR IMPROVEMENT OF RICE STRAW MANAGEMENT IN MEKONG DELTA, VIETNAM ONG QUOC CUONG SUBMITTED TO THE FACULTY OF THE GRADUATE SCHOOL UNIVERSITY OF THE PHILIPPINES LOS BAÑOS IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF DOCTOR OF PHILOSOPHY (Agricultural Economics) DECEMBER 2019 This dissertation attached hereto, entitled “FARMERS’ PREFERENCE FOR IMPROVEMENT OF RICE STRAW MANAGEMENT IN MEKONG DELTA, VIETNAM” prepared and submitted by ONG QUOC CUONG in partial fulfillment of the requirements for the degree of DOCTOR OF PHILOSOPHY (AGRICULTURAL ECONOMICS) is hereby accepted AGHAM C CUEVAS Member, Advisory Committee Date signed DINAH PURA T DEPOSITARIO Member, Advisory Committee Date signed MATTY DEMONT Co-Chair, Advisory committee Date signed ISABELITA M PABUAYON Chair, Advisory Committee Date signed Accepted in partial fulfillment of the requirements for the degree of DOCTOR OF PHILOSOPHY (AGRICULTURAL ECONOMICS) ANTONIO JESUS A QUILLOY Chair, Department of Agricultural and Applied Economics College of Economics and Management Date signed JOSE V CAMACHO JR Dean, Graduate School University of the Philippines Los Baños Date signed BIOGRAPHICAL SKETCH The author was born on September 08, 1989, in Ninh Kieu District, Can Tho City, Vietnam He is the second child of Mr Ong Duc Phat and Mrs Dang Thi Bich Hang He obtained his elementary education from Le Quy Don Primary School in 2000, secondary education from Luong The Vinh Junior High School in 2004, and high school education from Chau Van Liem High School in 2007 He graduated with a Bachelor of Science degree in Business Administration from Can Tho University in 2011 He has been working as a lecturer in the Department of Business Administration, College of Economics, Can Tho University from November 2011 He graduated with a Master of Science degree in Business Administration from Can Tho University in 2013 He is happily married to Ms Nguyen Ngoc Ha since December 2015 In June 2016, the German Academic Exchange Service and Southeast Asian Regional Center for Graduate Study and Research in Agriculture (DAAD-SEARCA) granted him a three-year scholarship for a Doctoral Degree in Agricultural Economics, with a cognate in Business Management at the University of the Philippines Los Baños (UPLB) ONG QUOC CUONG iii ACKNOWLEDGMENT I wish to express my sincere gratitude and heartfelt appreciation to the people and institutions that contributed to the completion of my Ph.D degree: I am most grateful to Dr Isabelita M Pabuayon, Chair of my Advisory Committee and Dr Matty Demont, Co-Chair of my Advisory Committee for their intellectual insights, valuable advice, constant encouragement, and hospitality My thanks to the members of my advisory committee: Dr Agham C Cuevas, and Dr Dinah Pura T Depositario for their valuable comments, sincere concern, and understanding I am grateful to the German Academic Exchange Service and the Southeast Asian Regional Center for Graduate Study and Research in Agriculture (DAAD-SEARCA) for granting me financial support I also thank Dr Maria Cristeta N Cuaresma, Program Head, Graduate Education and Institutional Development Department (GEIDD), and all the staff of the GEIDD for responding to all my requests so graciously My thanks also go to the administrative staff of the Department of Agricultural and Applied Economics, CEM, and the Faculty of Graduate School of UPLB for their great support in helping me meet all requirements and the Vietnamese Student Association at UPLB for their encouragements during my study I am forever grateful to my parents, my elder sister, especially, my wife, Nguyen Ngoc Ha, for their love, understanding, and spiritual support iv TABLE OF CONTENTS CHAPTER I II III PAGE Title Page Approval Page Biographical Sketch Acknowledgement Table of Contents List of Tables List of Figures List of Appendices Abstract INTRODUCTION 1.1 Background of the Study 1.2 Statement of the Problem 1.3 Objectives of the Study 1.4 Significance of the Study REVIEW OF LITERATURE 2.1 Rice Straw Management 2.1.1 Burning of Rice Straw 2.1.2 Field Incorporation of Rice Straw 2.1.3 Economic Uses of Rice Straw in Vietnam 2.2 Rice Straw Management in the Mekong Delta 2.3 Air Pollutant Emissions from Open Rice Straw Burning 2.4 Farmers’ Perception About Rice Straw Management Practices 2.5 Factors Affecting Farmers’ Choices of Rice Straw Management Practices 2.6 Applications of Choice Experiments 2.6.1 Agricultural Production Practices 2.6.2 Conservation Agriculture 2.6.3 Agri-environmental Schemes THEORETICAL AND CONCEPTUAL FRAMEWORK 3.1 Theoretical Framework 3.1.1 Theory of Technology Adoption 3.1.2 Theory of Sustainability v i ii iii iv v viii xiii xiv xvi 1 6 8 9 10 11 12 14 15 20 20 21 23 27 27 27 28 CHAPTER IV V PAGE 3.1.3 Externality, Market Failure and Policy Intervention 3.1.4 Revealed Preference and Stated Preference Methods 3.1.5 Choice Modeling 3.1.6 Choice Experiments 3.2 Conceptual Framework 3.3 Hypotheses of the Study RESEARCH METHODOLOGY 4.1 Selection of Study Area 4.2 Sampling Selection Method 4.2.1 Sampling Strategy 4.2.2 Sample Size 4.3 Types and Sources of Data 4.4 Methods of Data Analysis 4.4.1 Magnitude of Rice Straw and Potential Pollutant Emissions 4.4.2 Actual Rice Straw Management Practices and Their Determinants 4.4.3 Farmers’ Perception about Rice Straw Management 4.4.4 Farmers’ Preference for Designing Possible Improvement in Rice Straw Management 4.5 Limitation of the Study RESULTS AND DISCUSSION 5.1 Socio-demographic Characteristics of Farmers 5.2 Rice Production in the Mekong Delta 5.2.1 Cropping Seasons 5.2.2 Rice Varieties 5.2.3 Rice Production, Costs and Revenue 5.2.4 “Small Farmers, Large Field” Program 5.2.5 Rice Cultivation Practices 5.2.6 Production Contract 5.2.7 Buyers of Paddy Rice 5.3 Magnitude of Rice Straw and Potential Pollutant Emissions 5.3.1 Quantity of Rice Straw Subject to Open Burning 5.3.2 Air Pollutant Emissions from Rice Straw Burning vi 30 32 35 39 47 51 52 52 53 53 54 55 57 57 61 64 67 86 87 87 91 91 91 94 97 98 100 103 104 104 107 CHAPTER VI PAGE 5.3.3 Environmental Cost due to Greenhouse Gas Emission from Rice Straw Burning 5.4 Rice Straw Management Practices and Their Determinants 5.4.1 Rice Straw Management 5.4.2 Burning of Rice Straw 5.4.3 Field Incorporation of Rice Straw 5.4.4 Removal of Rice Straw 5.4.5 Factors Affecting Farmers’ Choices of Rice Straw Management 5.5 Farmers’ Perception about Rice Straw Managment 5.5.1 Benefits and Disadvantages of Burning Rice Straw 5.5.2 Benefits and Disadvantages of Field Incorporation of Rice Straw 5.5.3 Benefits and Disadvantages of Removal of Rice Straw 5.5.4 Use of Rice Straw 5.6 Farmers’ Preference for Designing Possible Improvement in Rice Straw Management 5.6.1 Distribution of Farmers 5.6.2 Attributes of Rice Straw Management Design 5.6.3 Possible Source of Fund for Subsidy for Sustainable Rice Straw Management SUMMARY, CONCLUSION AND POLICY RECOMMENDATION 6.1 Summary and Conclusions 6.2 Policy Recommendations LITERATURE CITED APPENDICES vii 109 113 113 126 131 136 143 175 175 178 181 184 185 185 187 192 195 195 201 203 214 LIST OF TABLES TABLE 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 PAGE Main choice modeling alternatives Design stages for choice modeling Rice planted area, yield and production by province, Mekong Delta, 2018 Sample size by province, Mekong Delta, Vietnam, 2019 Summary of EFs specific to rice straw open burning Direct Global Warming Potential relative to carbon dioxide Description of explanatory variables used in multinomial logit model Farmers’ perception about rice straw management Attributes and levels for designing possible improvement in rice straw management Design code and orthogonal code Orthogonal fractional factorial plan from SPSS Two-way interactions The correlation matrix Profiles with attribute assigned and sorted into three blocks The profile with alternative A The profile with alternative B Code-sum differences The official profile with alternative A The official profile with alternative B An example of choice set Definition of variables used in choice experiment Actual sample size by province and commune, 543 farmerrespondents, Mekong Delta, 2019 Socio-demographic characteristics, 543 farmer-respondents, Mekong Delta, 2019 Cropping season by province, 543 farmer-respondents, Mekong Delta, 2019 Rice variety in the Summer-Autumn 2018 by province, 543 farmer-respondents, Mekong Delta, 2019 Rice variety in the Autumn-Winter 2018 by province, 435 farmer-respondents, Mekong Delta, 2019 viii 36 38 52 55 58 59 63 65 68 71 72 73 74 75 77 78 80 82 83 84 85 87 89 91 92 93 TABLE 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 PAGE Rice variety in the Winter-Spring 2018-2019 by province, 543 farmer-respondents, Mekong Delta, 2019 Rice production, costs and net income by season, 543 farmerrespondents, Mekong Delta, 2019 Participation in “Small Farmers, Large Field” program, 543 farmer-respondents, Mekong Delta, 2019 Rice cultivation practices by province, 543 farmer-respondents, Mekong Delta, 2019 Use of production contract for paddy, 543 farmer-respondents, Mekong Delta, 2019 Contracting companies by province, 543 farmer-respondents, Mekong Delta, 2019 Type of contract by province, 543 farmer-respondents, Mekong Delta, 2019 Type of buyers of paddy rice by province, 543 farmerrespondents, Mekong Delta, 2019 Quantity of rice straw subject to open burning, Mekong Delta, 2018 Estimated air pollutant emissions from rice straw burning, Mekong Delta, 2018 Amount of emissions in carbon dioxide equivalent from rice straw burning, Mekong Delta, 2018 Environmental cost due to greenhouse gas emission from rice straw burning, Mekong Delta, 2018 Rice straw management practices by cropping season, 543 farmer-respondents, Mekong Delta, 2019 Rice straw management practices by province, 543 farmerrespondents, Mekong Delta, 2019 Difficulties in rice straw management practices by province, 543 farmer-respondents, Mekong Delta, 2019 Quality of rice straw by province, 543 farmer-respondents, Mekong Delta, 2019 Rice straw management and contact with agricultural extension, 543 farmer-respondents, Mekong Delta, 2019 Rice straw management and agricultural training, 543 farmerrespondents, Mekong Delta, 2019 ix 94 96 97 98 100 101 102 103 105 108 109 111 113 115 118 120 121 122 ... LITERATURE 2.1 Rice Straw Management 2.1.1 Burning of Rice Straw 2.1.2 Field Incorporation of Rice Straw 2.1.3 Economic Uses of Rice Straw in Vietnam 2.2 Rice Straw Management in the Mekong Delta... Disadvantages of Field Incorporation of Rice Straw 5.5.3 Benefits and Disadvantages of Removal of Rice Straw 5.5.4 Use of Rice Straw 5.6 Farmers? ?? Preference for Designing Possible Improvement in Rice Straw. .. from Rice Straw Burning 5.4 Rice Straw Management Practices and Their Determinants 5.4.1 Rice Straw Management 5.4.2 Burning of Rice Straw 5.4.3 Field Incorporation of Rice Straw 5.4.4 Removal of