The Role of Wealth Differentials in the Adoption of Water Conservation Technologies: A Double-Hurdle Approach

Laser Land Leveling (LLL) has emerged as a key technology for improving water-use efficiency and crop productivity, yet its adoption remains lower across farming systems in Punjab, Pakistan. Recognizing that capital-intensive technologies often benefit wealthier farmers disproportionately, the current study intends to explore the effects of wealth-related disparities on adoption and intensity of LLL amongst the farmers of different ecological zones in Punjab, Pakistan. Using a household survey data, we first categorized farming households into two groups named as poorly-endowed and well-endowed households. We further applied a Cragg's double hurdle model to examine the adoption and intensity of LLL amongst each group. The results show that risk aversion markedly suppresses both adoption and intensity, while wealth and financial capacity strongly enable investment in this technology. Favorable production environments—particularly irrigate zone—further enhance uptake, whereas rainfed areas and groundwater conditions restrict adoption. Substantial heterogeneity across wealth groups is observed, with education, credit access, and extension services affecting intensity in distinct ways. The findings reveal two binding constraints—risk aversion and financial limitations—and underscore the importance of policies tailored to different wealth segments, including subsidized rental services, flexible credit schemes, stronger extension outreach, and improved access to machinery. Overall, the study demonstrates that scaling LLL adoption requires addressing financial, behavioral, and production-environment barriers simultaneously to ensure equitable and inclusive technological diffusion.