The IoT-Driven Risk Preference, Government Regulation, and the Sustainability of Crop Straw Resource Utilization: A Multidimensional Analysis Based on Micro-Survey Data

The sharp increase in global crop straw production has led to serious issues of straw burning and disposal which threaten global agricultural sustainability. Despite efforts by the Chinese government to promote crop straw resource utilization (CSRU), low farmer participation, and a singular technological structure remain persistent issues. Grounded in prospect theory, this paper uses micro-survey data from 440 rural households in Liaoning Province, China, applying the logit model to explore the impact of farmers’ risk preferences on their CSRU behavior. Additionally, it analyzes the moderating role of government regulation—specifically those based on incentives, restrictions, and guidance measures—on this relationship. IoT is introduced as a critical enabler to improve farmer engagement and decision-making in CSRU. IoT technologies such as real-time monitoring of straw production and disposal, along with smart sensors that track crop straw usage, can provide farmers with accurate, data-driven insights, reducing uncertainty and enhancing their confidence in sustainable practices. These technologies can influence risk preferences by offering clear, real-time feedback on the potential benefits and risks associated with straw resource utilization. Findings show that most farmers exhibit risk aversion, which significantly influences their CSRU behavior, and their sensitivity to low-probability risks (probability weighting) hinders their participation. The moderating effect of government regulation also differs across various measures, highlighting the importance of tailored policy interventions. This study contributes to a better understanding of the interplay between agricultural practices, risk assessment, IoT, and policy frameworks, offering actionable insights for the formulation of policies to promote CSRU and ensure sustainable agricultural development.