This study combined farm household panel data, weather data and discount rates, as measured by a hypothetical survey question, to estimate the impact of income on discounting. This paper has found that income variation driven by anomalies in rainfall during the main growing season is a strong predictor of farmers’ subjective discount rates. Farmers prefer a smaller immediate reward to a larger deferred one when affected by negative income shocks, while they display lower discount rates when the income shocks are positive.
The individual farmer in a developing country has little incentive to care about the public good properties of on-farm biodiversity in the form of different crop varieties. There is a common assumption that, because of this, farmers will tend to maintain too little biodiversity on their farms.
The Impact of Multiple Climate Smart Practices on Gender Differentiated Nutrition Outcomes: Panel Data Evidence from Ethiopia
Since the beginning of the decade, climate resilient green economy strategies have been proposed in many African countries. One of the pillars of the strategies is the adoption and diffusion of various climate smart agricultural practices for improving crop and livestock production and farmer income while reducing greenhouse gas emissions. The effects of these innovations on household nutritional security, including gender-differentiated nutritional status, have hardly been analyzed.
Having a reliable supply of electricity is essential for the operation of any firm. In most developing countries, however, electricity supply is highly unreliable. In this study, we estimate the cost of power outages for micro-, small-, and medium-sized enterprises in Addis Ababa, Ethiopia, using a stated preference survey. We find that the willingness to pay, and thus the cost of power outages, is substantial. The estimated willingness to pay for a reduction of one power outage corresponds to a tariff increase of 16 percent.
In empirical studies, survey questions are typically used to measure trust; trust games are also used to measure interpersonal trust. In this paper, we measure trust in different institutions by using both trust games and survey questions. We find that generalized trust is only weakly correlated with trust in specific institutions, when elicited both by using a trust game and by using survey questions. However, the correlation between trust in a specific institution elicited through a trust game and stated trust for the same institution is stronger and statistically significant.
Using Data on Social Influence and Collective Action for Parameterizing a Geographically-Explicit Agent-Based Model for the Diffusion of Soil Conservation Efforts
Social influence affects individual decision-making on soil conservation. Understanding the emergent diffusion of collective conservation effort is relevant to natural resource management at the river basin level. This study focuses on the effect of subjective norms and collective action on the diffusion of Soil Conservation Effort (SCE) in the Lake Naivasha basin (Kenya) for the period 1965–2010. A geographically-explicit Agent-Based Model (ABM) version of the CONSUMAT model was developed: the CONSERVAT model.
The Driving Forces of Co2 Emissions and Its Responsiveness in Ethiopia: An Integrated Analysis Using Vector Error Correction Model
The main objective of this study is to examine the driving factors of CO2 emissions in Ethiopia to promote sustainable development. This study, employees an integrated approach of the multiplicative product of Population, Affluence, and Technology (IPAT) identity as a framework using Vector Error Correction Model (VECM).
Households’ Preferences and Willingness to Pay for Improved Solid Waste Management Interventions Using Choice Experiment Approach: Debre Tabor Town, Northwest Ethiopia
Good Solid Waste Management (SWM) practices are indispensable for maintaining quality environment and the health of urban dwellers in most developing countries, like Ethiopia. However, for successful implementation of adequate SWM options, households’ preferences and their Willingness to Pay (WTP) should be taken in to consideration. The main aim of this study was to analyse the preferences of households’ and estimate the WTP for improved SWM service attributes in the form of money income and labor effort using choice experiment approach.
Fishing community preferences and willingness to pay for alternative developments of ecosystem-based fisheries management (EBFM) for Lake Naivasha, Kenya
Ecosystem-based fisheries management (EBFM) is an important complement to existing fisheries management approaches to maintain ecosystem health and function; to translate goals and aspirations for sustainability into operational objectives, the preferences of the fishing communities should be considered for successful implementation of EBFM. This study analysed the preferences of the fishing community for alternative EBFM developments for Lake Naivasha, Kenya, and estimated the willingness to pay, using a choice experiment approach.
Ethiopian livestock farmers hope for a modern future by Haleluya Gebru
The EfD Ethiopia Report 2017 gives you an excellent overview of the centres´ achievements during 2017 ranging from interesting policy stories on how economic research is put to use around the world to collaborative research programs, a wide range of publications, and our academic capacity efforts.
This paper examines the determinants of Micro, Small and Medium Enterprises’ adoption of energy efficiency practices and technologies, using cross-sectional data of 8174 randomly selected enterprises from ten major urban areas of Ethiopia. For identification, the study relys on a generalized ordered probit model. The findings reveal that, as the size of the enterprise becomes larger, it is more likely the enterprise will undertake energy efficient practices and technologies.
Climate-Smart Agricultural Practices and Welfare of Rural Smallholders in Ethiopia: Does Planting Method Matter?
The purpose of this study is to provide empirical evidence on the impact of a climate-smart agricultural practice (row planting) on the welfare of rural households. Data collected from 260 households in the North Wollo Zone of Ethiopia were analyzed using Propensity Score Matching (PSM) and a semi-parametric Local Instrumental Variable (LIV) version of the generalized Roy model. The results from the PSM revealed that adoption of row planting technology has a positive and significant impact on per capita consumption and on crop income per hectare.
Do safety net transfers improve household diets and reduce undernutrition? Evidence from rural Ethiopia
This paper examines the impact of the Ethiopia’s Productive Safety Net Program on household dietary diversity and child nutrition using both waves of the Ethiopian Socioeconomic Survey. The study uses various methodologies, to estimate the effect of the program on household dietary diversity, it relys on the exogeneity of the change in the amount of money that kebeles (lowest administrative unit) have available to allocate among program beneficiaries, which depends on donor support. It presents evidence that there is a discrete jump in the kebeles’ allocated budget between 2012 and 2014.
This study use the concepts of riskscapes and risk governance to analyze the tensions between land use for food (farms) and energy (dams) in South West Ethiopia. It analyzes the linkage between risk perception, risk assessment and risk management for local and non-local actors. The study distinguish, after empirical analysis, as main riskscapes the riskscapes of landlessness, food and energy insecurity and siltation.
Climate change adaptation: a study of multiple climate-smart practices in the Nile Basin of Ethiopia
Improving farm-level use of multiple climate change adaptation strategies is essential for improving household food security, particularly against a backdrop of a high risk of climatic shocks. However, the empirical foundation for understanding how farm households choose multiple climate-smart practices is far from being established. In this paper, the effects of household, farm and climatic factors on farmers’ decisions to use multiple adaptation practices are analysed.
We use a dynamic system GMM regression on ve rounds of panel data to estimate the impact of international remittances on consumption of urban Ethiopian households, who spend more than 70% of their consumption budget on food. Results suggest that international remittances play a signi cant role in augmenting household consumption. A 1% increase in remittances from abroad leads to a 0.10% increase in household consumption.
This research investigates the profitability of bioethanol production in Africa, taking Ethiopia as a case in point, and suggests an oil price threshold beyond which biofuels may be profitable. Specifically, the study analyzes the viability of producing bioethanol from molasses in the context of Ethiopia, using data from a biofuels investment survey by EEPFE/EDRI in 2010. The study draw on investment theory as underlying conceptual framework and employ unit cost analysis for the empirical analysis.
Continued high reliance on traditional biomass fuels and stoves in developing countries gives rise to several human health, environmental, and livelihood issues. However solid data on the performance of improved biomass cooking stoves remains scarce. This paper provides controlled cooking test (CCT) evidence on fuel savings from a promising improved biomass cooking stove in Ethiopia. The stove is called Mirt(meaning “best” in Amharic), and is used to bake injera, the staple food in much of Ethiopia. Injera preparation accounts for about half the primary energy consumed in the country.
This study uses a dynamic system GMM regression on five rounds of panel data to estimate the impact of international remittances on consumption of urban Ethiopian households, who spend more than 70% of their consumption budget on food. Results suggest that international remittances play a significant role in augmenting household consumption. A 1% increase in remittances from abroad leads to a 0.10% increase in household consumption.
This study conducted a cross-sectional survey of 8174 micro, small and medium enterprises from ten major urban areas in Ethiopia to study the determinants of the enterprises’ adoption of energy efficiency practices and technologies. For identification, we rely on a generalized ordered probit model. The findings reveal that, as the size of the enterprise becomes larger, it is more likely the enterprise will undertake energy efficient practices and technologies.
Does Intensive Tillage Enhance Productivity and Reduce Risk Exposure? Panel Data Evidence from Smallholders’ Agriculture in Ethiopia
This study analyses the impact of intensity of tillage on wheat productivity and risk exposure using panel household-plot level data from Ethiopia. In order to control for selection bias, it estimates a flexible moment-based production function using an endogenous switching regression treatment effects model. The result shows that tillage has a complementary impact on productivity and risk exposure.
The Country Environmental Analysis (CEA) of Ethiopia is a country-level diagnostic tool to support investment and policy dialogues. It highlights the key environment-related trajectories and challenges facing the country in the coming decade and beyond, and identifies pathways for simultaneously achieving economic, social, and environmental objectives in the context of Ethiopia’s Climate Resilient Green Economy (CRGE) Strategy for 2025, and Second Growth and Transformation Plan (GTP II) for 2016-2020.
Does purchase price matter for the waiting time to start using energy efficient technologies: Experimental evidence from rural Ethiopia?
this study uses a randomized experiment in rural Ethiopia to test on how quickly energy efficient technology (an improved stove) is put in use after the technologies is disseminated. We evaluate two concepts that may affect usage of a product: screening (related to valuation of a product) and sunk cost effects (based on the price the potential user paid for the product). A standard Tobit and IV-Tobit methods of estimations are used for testing sunk cost and screening effects, respectively.
Technological Innovation and Dispersion: Environmental Benefits and the Adoption of Improved Biomass Cookstoves in Tigrai, Northern Ethiopia
This paper empirically analyzes adoption and fuel savings efficiency of improved biomass cookstove technology using survey data from a cross-section of 200 farm households from the highlands of Tigrai, northern Ethiopia. Results indicate that these farm households are willing to adopt improved biomass cookstove innovations if this leads to economic savings. Moreover, results suggest significant positive environmental externalities. On a per household basis, we found that adopters collect about 70 kg less wood and about 20 kg less dung each month.
Determinants of Adoption and Impacts of Sustainable Land Management and Climate Smart Agricultural Practices (SLM-CSA)
This paper analyzes the factors affecting adoption of sustainable land management and climate smart agricultural (SLM-CSA) practices (in particular tree planting, soil conservation and inter cropping)and the effects of adoption on crop net revenue. We use two rounds of household and parcel level survey data collected from the East Gojjam and South Wollo Zones in the Amhara region of Ethiopia, in combination with spatially explicit climate data (rainfall and temperature).
Determinants of Adoption and Impacts of Sustainable Land Management and Climate Smart Agricultural Practices (SLM-CSA): Panel Data Evidence from the Ethiopian Highlands
This paper analyzes the factors affecting adoption of sustainable land management and climate smart agricultural (SLM-CSA) practices (in particular tree planting, soil conservation and intercropping) and the effects of adoption on crop net revenue. We use two rounds of household and parcel level survey data collected from the East Gojjam and South Wollo Zones in the Amhara region of Ethiopia, in combination with spatially explicit climate data (rainfall and temperature).
The Impact of Credit Constraints and Climatic Factors on Choice of Adaptation Strategies: Evidence from Rural Ethiopia
Climate adaptation actions, like any other investment, require financial resources, which are likely to be in short supply in the rural sector in developing countries. This paper assesses the role of credit constraints in the choice of adaptation strategies in settings with severe financial market imperfections. Household-level panel data from selected zones in the highland region of Ethiopia, combined with climate information from the adjacent meteorological stations, is employed in the analysis.
Using household-plot level panel data from the Nile Basin of Ethiopia, this article applies a random effects ordered probit endogenous switching regression model to empirically investigate the impact of weather events and other conditioning factors on farmers’ choice of tillage intensity and the effect of changing tillage frequencies on differences in farm returns. Results indicate that, while low frequency tillage is more likely in drier areas, plot-level shocks (such as pests and diseases) are key variables in the choice of high-frequency tillage.
Do safety net transfers improve household diets and reduce under nutrition? Evidence from rural Ethiopia
The paper examines the impact of the Ethiopia’s Productive Safety Net Program on household dietary diversity and child nutrition using both waves of the Ethiopian Socio-economic Survey. Key messages • The Productive Safety Net Program is not found to have any impact on dietary diversity or child nutrition, however, it does help reduce household food insecurity. • A nutrition-sensitive social protection program should be implemented. • To improve child nutrition, social benefits can be made conditional on parents’ participation in nutrition education programs.
Individuals’ risk preferences may change after experiencing external socio-economic or natural shocks. Theoretical predictions and empirical studies suggest that risk taking may increase or decrease after experiencing shocks. So far the empirical evidence is sparse, especially when it comes to developed countries. We contribute to this literature by investigating whether experiencing financial and health-related damage caused by storms affects risk preferences of individuals in Germany.
We investigate the role of an indigenous social network in Ethiopia, the iddir, in facilitating factor market transactions among smallholder farmers. We use detailed longitudinal household survey data and employ fixed effects estimation approaches to identify the effect of iddir membership on factor market transactions among farmers. We find that joining an iddir network improves households’ access to land, labour and credit transactions.
We estimate the production function for agricultural output in Eastern Africa incorporating climate variables disaggregated into growing and non-growing seasons. We find a substantial negative effect of within growing season variance of precipitation. We simulate predicted climate change for the region and find a resulting output reduction of between 1.2% and 4.5%.
Pay-What-You-Want (PWYW) pricing schemes are becoming increasingly popular. We develop a model incorporating self-image into the buyer’s utility function and introduce heterogeneity in consumption utility and image-sensitivity, generating different purchase decisions and optimal prices across individuals. When a good’s fixed price is lower than a threshold fair value, PWYW can lead to a lower utility. This may result in a lower purchase rate and higher average price, accounting for previously unexplained field experimental evidence.
In this paper, we propose a reputation-signalling model of demand for consumer goods containing pro-social characteristics such as a ‘fair trade’ or ‘organic’ certification. We show that reputation signalling can reverse price reactions resembling the crowding-out of pre-existing motives for pro-social behavior seen in situations of volunteering and charitable giving. Finally, using a unique combination of questionnaire and purchase panel data, we present evidence of such reputation-driven reversal of price reactions in the Danish market for organic milk.
Empirical studies point to reduced tillage as a means to increase yields and reverse land degradation. A relatively neglected avenue of research concerns why farmers increase tillage frequencies. Using household plot–level panel data from the Nile Basin of Ethiopia, this article applies a random effects ordered probit endogenous switching regression model to empirically investigate the impact of weather events and other conditioning factors on farmers’ choice of tillage intensity and the effect of changing tillage frequencies on differences in farm returns.
Strong property rights have long been touted as key to increased performance of the rural economy in developing countries. Indeed, in an overwhelmingly agrarian economy like Ethiopia, with state ownership of land, increased land tenure security of individual farmers is expected to play a significant role in factor allocation within and beyond the agricultural sector. This paper analyses the impact of a land certification program on farmers’ off-farm participation, based on household-level panel data collected in the Amhara Region of Ethiopia.
This paper investigates the spatial and temporal aspect of seasonal agricultural drought in Ethiopia during the cropping season using Vegetation Condition Index. SPOT-VGT S10 NDVI time-series for the period 1998 to 2013 was employed. Five hundred and sixty-seven dekadal images were administered in order to produce the multi-temporal agricultural drought maps. Accordingly, the analysis showed different causes for the nation-wide drought events occurred in the years 1998, 2000, 2002, 2009, and 2010.
Reducing poverty and improving household food security remains an important policy objective for rural development in the semi-arid areas of many countries in Africa. Many development programs have been introduced in efforts to bring the cycle of poverty and food insecurity to an end. This paper investigates the impact of a food security package (FSP) program in improving rural household’s food consumption in Tigray region, Northern Ethiopia.
The Effect of Enclosures in Rehabilitating Degraded Vegetation: A Case of Enderta District, Northern Ethiopia
Ethiopia is one of the African countries facing problems of environmental degradation. In particular, the problem is severe in the Tigray region of Northern Ethiopia highlands where, environmental degradation is threatening many parts of the region. Efforts to contain this problem and facilitate natural rehabilitation have been made at several levels. The establishment of area enclosures, and soil and water conservation works are two of the main strategies promoted to contain land degradation and restore the natural vegetation.
In semi-arid highlands of northern Ethiopia, episodes of droughts of varying severity and duration occur. The occurrence of these droughts is associated mainly with the seasonal rainfall variability. This study attempts to investigate the temporal and spatial variability of climate parameters, particularly rainfall and temperature for the period 1954-2008. Standardized rainfall anomaly was used to examine the temporal characteristics of climate variability and determine the prevalence of droughts.
This article examines the main household demographics and economic factors associated with food insecurity and coping behavior of rural households employed during times of food shortages in northern Ethiopia. Using a cost-of-basic-needs approach we estimated the food poverty line. This cut-off value was used to classify households as either food secure or insecure.
Climate change and variability severely affect rural livelihoods and agricultural productivity, yet they are causes of stress vulnerable rural households have to cope with. This paper investigated farming communities’ vulnerability to climate change and climate variability across 34 agricultural-based districts in Tigray, northern Ethiopia. It considered 24 biophysical and socio-economic indicators to reflect the three components of climate change vulnerability: exposure, sensitivity and adaptive capacity.
Farmers Prone to Drought Risk: Why Some Farmers Undertake Farm-Level Risk-Reduction Measures While Others Not
This research investigates farmers’ cognitive perceptions of risk and the behavioral intentions to undertake farm-level risk-reduction measures. It has been observed that people who are susceptible to natural hazards often fail to act, or do very little, to protect their assets or lives.
In Ethiopia, climate change and associated risks are expected to have serious consequences for agriculture and food security. This in turn will seriously impact on the welfare of the people, particularly the rural farmers whose main livelihood depends on rain-fed agriculture. The level of impacts will mainly depend on the awareness and the level of adaptation in response to the changing climate.
With the development of global changes, researchers from all over the world increasingly pay attention to drought detection, and severe droughts that may have resulted from climate change. In this paper, spatial and temporal variability of drought is evaluated based on precipitation data and remotely sensed images. The standard precipitation index (SPI) and vegetation condition index (VCI) are used to evaluate the spatial and temporal characteristics of meteorological and vegetative drought in Tigray, Northern Ethiopia.
This study attempts to investigate the effectiveness of government policy interventions at different scales addressed to improve food security. Food security both at the regional and district level was investigated by deriving food balance sheets for the period 2000-2008. An empirical analysis based on a logit model was also employed to analyze household level food security status.
Does Adoption of multiple climate-smart practices improve farmers’ climate resilience? Empirical evidence from the Nile basin of Ethiopia
There is a paucity of information on conditioning factors that hinder or promote adoption of multiple climate-smart practices and on the synergies among such practices in increasing household resilience by improving agricultural income. This study analyzes how heat, rainfall, and rainfall variability affect farmers’ choices of a portfolio of potential climate smart practices — agricultural water management, improved crop seeds, and fertilizer — and the impact of these practices on farm income in the Nile Basin of Ethiopia.
This article investigates the impact of an institutional intervention on market efficiency in Ethiopia. More specifically, it analyzes to what extent the Ethiopian Commodity Exchange (ECX) in combination with regional warehouses have contributed to a reduction in price spreads between regional markets. The hypothesis is that warehouses connected to the ECX reduce the dispersion between export prices and local retail prices in different coffee growing areas, as well as the dispersion between export prices and local retail prices in different coffee growing areas.
This is a chapter in a book entitled “Bioenergies in East Africa between challenges and opportunities” Edited by Marco Setti, Daria Zizzola 2016.