Diffusion of irrigation technologies: the role of mimicking behaviour and public incentives

We develop a conceptual framework designed to assess the impact of public incentives on the diffusion process of modern, water-saving irrigation technologies. Diffusion patterns of the integral sprinkler cover system in the sugarcane sector of Reunion Island (France) are estimated using a sample of 110 farmers aggregated over the period 1990 to 2006. We show that imitation is the main explanatory factor of the adoption dynamics. We also show that the characteristic diffusion path is not perfectly symmetric and is significantly affected by equipment subsidies.