The impacts of observational learning and word-of-mouth learning on farmers' use of biogas in rural Hubei, China: does interpersonal trust play a role?

Background: Residue-based biogas is considered as a renewable energy that should be used to improve energy security and household livelihoods in rural areas. Observational learning and word-of-mouth learning are critical in the dissemination of knowledge about agricultural technologies. Yet, scholars have little understanding of the impacts of these learning methods on farmers' use of residue-based biogas. Using survey data from rural areas of Hubei China, this study estimates the impacts of observational learning and word-of-mouth learning from different subjects (i.e., relatives, neighbors, cadres, cooperative members, and technical instructors) on the use of residue-based biogas by farmers. Additionally, the moderating role of interpersonal trust in these relationships is explored. Results: Results from logistic regression models show that observational learning from technical instructors significantly increases farmers' use of biogas. Furthermore, interpersonal trust significantly and positively influences the impact of observational learning on farmers' decisions to use biogas. Similarly, interpersonal trust significantly and positively moderates the influence of positive word-of-mouth learning on farmers' decision to use biogas. In contrast, a negative moderating role exists in the relationship between negative word-of-mouth learning and farmers' decision to use biogas. These impacts are further affirmed by robustness checks. Conclusions: The results presented here show that enhancing farmers' interpersonal trust promotes the use of residue-based biogas by farmers. One important implication is that the government might promote the use of residue-based biogas by organizing technology demonstration activities, providing communication platforms, and enhancing mutual trust between farmers and relevant groups. [ABSTRACT FROM AUTHOR]