Climate change has become one of the most important development challenges worldwide. It affects various sectors, with agriculture the most vulnerable. In Ethiopia, climate change impacts are exacerbated due to the economy’s heavy dependence on agriculture. The Ethiopian government has started to implement its Climate Resilient Green Economy (CRGE) strategy, which is planned to foster development and sustainability while limiting GHG emissions by 2030. However, to the best of our knowledge, research on estimating the economic impacts of CO2 emissions are limited.
We investigated crossbreeding adoption and milk and milk product market participation using farm household survey data in the central highlands of Ethiopia. We estimated a multivariate probit model to account for correlations across the choice of crossbreeding technology and market participation and to study the effect of transaction costs on participation.
In this article, we study the impact of an institutional intervention on market efficiency in Ethiopia. More specifically, we study whether regional warehouses that are connected to a national commodity exchange reduce transaction costs and price dispersion between regions. In order to identify the causal effect, we take advantage of the fact that the warehouses that are connected to the Ethiopian Commodity Exchange were sequentially rolled out.
Abstract: Previous research studies suggest a lower degree of positional concerns among people from poor countries. Yet the evidence is limited and most often builds on the assumption that people's reference groups are the same across all individuals. We conduct a survey experiment in urban Ethiopia that is modified to include multiplicity of reference groups. We estimate positional concerns considering various reference groups to test whether the low positional concerns found in the literature are due to misspecification of the reference groups.
Land conflicts in developing countries are costly both directly and through increased land degradation. An important policy goal is to create respect for borders. This often involves mandatory, expensive interventions. We propose a new policy design, which in theory promotes neighborly relations at low cost. A salient feature is the option to by-pass regulation through consensus. The key idea combines the insight that social preferences transform social dilemmas into coordination problems with the logic of forward induction.
In this paper, we analyze what drives farmers to disadopt green revolution technologies (inorganic fertilizer and improved seed) and whether the disadoption of green revolution technologies is related to adoption/non-adoption of other sustainable land management practices (such as farmyard manure and soil and water conservation practices). Random effects multivariate probit regression results based on rich plot level data suggest that black/brown soil type, flatter slope, shorter distance to homestead and extension centers, and access to water are negatively co
REDD + is one of the tools under development to mitigate climate change, but it is not yet clear how to appropriately bring in the approximately 25 per cent of developing country forests that are managed by communities. Drawing on the economics of collective action literature, the authors attempt to shed light on whether forest collective action itself sequesters carbon.
Maize is a strategic commodity for improving food security and alleviating poverty in Tanzania, but its productivity remains low. The importance of improved maize varieties (IMVs) in increasing productivity is documented in existing literature. Previous adoption studies in Tanzania did not examine the factors that influence the speed/timing of adoption. This study examines the determinants of the speed of adoption of IMVs using a duration model and recently collected plot- and household-level data in rural Tanzania.
This study looks into the effect of resource collection (fuelwood collection and fetching water) on child education using data collected from rural Ethiopia. We find that, in general, natural resource scarcity contributes to child illiteracy by increasing the work burden on children in rural Ethiopia. In particular, children’s participation in fetching water is found to be one of the most important factors reducing children’s ability to read and write. There is greater child literacy when household heads have more education and when the family lives near a school.
This article uses househld panel data spanning the period 2000–2007 to test hypotheses from the literature that secure land tenure, market access and collective action promote accumulation of private capital assets in rural highland Ethiopia. The three natural capital assets analysed in the article, livestock, eucalyptus trees and non-eucalyptus trees on households’ farm plots, make up virtually 100 per cent of privately held disposable assets. Incomes and capital stocks are extremely low and constant and tree assets are at least as important as livestock. We find that collective action and secure land tenure have strong positive effects on accumulation of livestock and other trees, but not eucalyptus. We also find evidence that market access promotes eucalyptus holdings and that other types of wealth tend to be positively associated with private natural capital stocks.
Extant literature on Joint Forest Management (JFM) impact evaluation has concluded that it generally does not provide sufficient incentives to justify the costs that forest use restrictions impose on local people. However, there is a dearth of evidence concerning whether alternative JFM intervention with improved market linkages for non-timber forest products has similar implications. In this study, we evaluated the income and distributive effects of a JFM program in Ethiopia in which additional support for improved market linkages of non-timber forest products was provided.
The EfD Report 2014/15 gives you an excellent overview of the EfD centres´ achievements during 2014 and ongoing work during 2015. 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 building program.
The paper analyzes the economic impacts of climate change-induced fluctuations on the performance of Ethiopia's agriculture, using a countrywide computable general equilibrium (CGE) model. We model the impacts on agriculture using a Ricardian model, where current agricultural production is modelled as a function of temperature and precipitation, among other things, and where future agriculture is assumed to follow the same climate function. The effect of overall climate change is projected to be relatively benign until approximately 2030, but will become considerably worse thereafter.
In developing countries such as Ethiopia, rural households spend a considerable part of their time in agriculture as well as resource collection. However, rigorous empirical studies on the impacts of scarcity of environmental resources on productive activities such as agriculture are very limited—in developing countries in general and Africa in particular. Using a panel data set collected from Ethiopia, this paper examines the effect of scarcity of fuelwood and water on time spent in agriculture.
Biofuels production has received increasing focus by developed and developing countries due to rising fossil fuel prices and the need to mitigate greenhouse gas emissions. The net economic and environmental impacts of biofuel programs have become an important question of public policy. In particular, the anticipation that biofuels may have a lower environmental footprint than fossil fuels is one of the important drivers. This study investigates the economy-wide impact of biofuel investment in Ethiopia with the focus on greenhouse gas (GHG) emissions and the forest sector.
This paper examines the causality between residential electricity consumption and GDP in Ethiopia by using time series data for the period 1970–2011. Examining the link between economic growth and energy consumption can help policy makers design appropriate policy instruments.
Using three rounds of survey data that cover a decade, we analyze household preferences for energy types and energy choice in urban Ethiopia. We find that, during 2000-2009, households in major cities of Ethiopia used multiple fuels as their income increased. Increased fuelwood prices encourage consumption of cleaner fuels, such as electricity, while increased kerosene prices encourage solid fuel consumption. Better educated households are more likely to consume cleaner fuels. While increased incomes are associated with consumption of cleaner fuels, households did not entirely shift to consumption of modern fuels as their income increased. This suggests that an energy transition did not take place following economic growth during the study period.
Land tenure security has long been touted as key to increased performance of the agricultural sector in developing countries. At the same time, off-farm employment is seen as a strategy to diversify rural economies.
This research investigates the profitability of biofuels production in Africa, taking Ethiopia as a case in point, and suggests an oil price threshold beyond which biofuel may be profitable. Specifically, the study analyzes the viability of bioethanol from molasses and biodiesel from other feedstock in the context of Ethiopia, using data from a biofuels investment survey by EEPFE/EDRI in 2010, and makes estimates based on field visits.
This paper explores smallholder farmers’ adoption decisions of multiple sustainable intensification practices (SIPs) in eastern and southern Africa. The authors develop a multivariate probit model using plot-level data gathered from maize–legume farming systems in Ethiopia, Kenya, Malawi, and Tanzania.
Forest tenure reforms are occurring in many developing countries around the world. These reforms typically include devolution of forest lands to local people and communities, which has attracted a great deal of attention and interest. While the nature and level of devolution vary by country, all have potentially important implications for resource allocation, local ecosystem services, livelihoods and climate change.
Few studies have examined the dynamic aspect of the effect of natural resource collection on child education. This paper looks into the effect of resource collection on child education using panel data collected in four rounds from rural Ethiopia.
This paper assesses rural households’ decision to use improved maize varieties in Malawi and examines its impact on household welfare using a three-year household panel data.
Ethiopia has implemented one of the largest, fastest and least expensive land registration and certification reforms in Africa. While there is evidence that this ‘first-stage’ land registration has had positive effects in terms of increased investment, land productivity and land rental market activities, the government is now piloting another round of land registration and certification that involves technically advanced land survey methods and computer registration.
This study examines current land access and livelihood choices of rural youth in Southern Ethiopia. We found that youth in rural south have limited access to agricultural land because of land scarcity and land market restrictions.
Climate change is one of the most important challenges facing the world in general and Africa in particular. This article examines economic costs of climate change and climate finance with a focus on Africa.
Land is a scarce resource in the highlands of Ethiopia. Its sustainable use is highly affected by bio-physical and institutional factors. The purpose of this research is to investigate farmers' perceptions about land quality, land fragmentation and tenure systems and their influences on sustainable land management (SLM) investments in the North Western Ethiopian Highlands.
This article reviews the history of the Environment for Development (EfD) initiative, its activities in capacity building and policy-oriented research, and case studies at its centres in Chile, China, Costa Rica, Ethiopia, Kenya, South Africa and Tanzania.
Previous studies on improved cook stove adoption in developing countries use cross-sectional data, which make it difficult to control for unobserved heterogeneity and investigate what happens to adoption over time. We use robust non-linear panel data and hazard models on three rounds of panel data from urban Ethiopia to investigate the determinants of adoption and disadoption of electric cook stoves over time.
Previous studies of poverty in developing countries have to a great extent focused on the characteristics of the household head and used these as proxies for the underlying ability of the household to generate income. This paper uses five rounds of panel data to investigate the persistence of poverty in urban Ethiopia, with a particular focus on the role of intra-household heterogeneity in occupations.
Weather fluctuations tend to be as important as climate change in farmers’ decision making in countries such as Ethiopia that have virtually no weather insurance. This paper assesses the distinct impacts of weather and climate change measures on agricultural productivity of households, measured in terms of crop revenue, in the Amhara region of Ethiopia.
The joint EfD Report 2013/14 showcases the work undertaken by the Environment for Development Initiative.
Biogas as a technology and the factors that affect its productivity have both been well studied. Research has previously been done to look at the impact of temperature, pH, organic loading rate, carbon-to-nitrogen ratios, microbial populations and hydraulic retention time on different scales of biogas operations. Small scale biogas installations, of which many millions have been constructed and seem to be performing well, have been chosen as the area of focus for this paper. Such systems allow energy generation on site, thereby eliminating the need for energy intensive transport.
Economic growth in industrialized countries over the past few decades did not result in improved subjective well-being (SWB) of citizens.
Rising prices of fossil fuels, together with apprehension about the environmental harm created by them, have resulted in increasing efforts to search for alternative energy sources such as biofuels. Biofuels production is still a debatable issue regarding the opportunities it creates and the challenges it poses.
In this paper, after a review of the evolution of the literature on climate change economics in agriculture, I present some evidence of the impact of different moments of the distribution of rainfall on farmers risk aversion.
This study investigates the impact of climate change adaptation on farm households’ downside risk exposure in the Nile Basin of Ethiopia. The analysis relies on a moment-based specification of the stochastic production function. We use an empirical strategy that accounts for the heterogeneity in the decision on whether to adapt or not, and for unobservable characteristics of farmers and their farm.
Cities around the world generate substantial quantities of municipal solid waste, including organic residues. These organic residues can be managed productively and given value, or they can simply be wasted.
Except for the lowlands and pastoralist areas, mixed crop-livestock farming is the dominant farming type in Ethiopia. However, there have been few attempts to look into the economic impacts of climate change in the context of Ethiopia. Particularly, the role of livestock was disregarded in the previous studies.
Biofuels have received a great deal of attention globally, and many countries have embarked on producing biofuels, given the volatility and the recent all-time high of world oil prices.
Previous studies of poverty in developing countries have to a great extent focused on the characteristics of the household head and used these as proxies for the underlying ability of the household to generate income.
Unlike most studies of subjective well-being in developing countries, we use a fixed effects regression on three rounds of rich panel data to investigate the impact of relative standing on
life satisfaction of respondents in urban Ethiopia.
Several activities are being undertaken to improve the livelihood of poor households by governments and NGOs in developing countries including Ethiopia. As women constitute about half of the total population in Ethiopia, it is important to see their role in improving household’s food security. This study provides an assessment of the role of women’s participation in ensuring food security at household level in Ebinat district, Amhara Region, Ethiopia.
Osteoporosis is one of the most common public health problems affecting adults and elderlies in developing countries. This study aims to examine the potential risk factors of osteoporosis among adults in Tigrai, Northern Ethiopia.
Uncertainty about the future is an important determinant of well-being, especially in developing countries where financial markets and other market failures result in ineffective insurance mechanisms. However, separating the effects of future uncertainty from realised events, and then measuring the impact of uncertainty on utility, presents a number of empirical challenges.
Using data spanning 15 years, we study subjective and consumption poverty in urban Ethiopia. Despite rapid economic growth and declining consumption poverty, subjective poverty remains largely unchanged.
This is a chapter in the book entitled 'Land Tenure Reform in Asia and Africa: Assessing Impacts on Poverty and Natural Resource Management'.
The authors analyze the impact of different adaptation strategies on crop net revenues in the Nile Basin of Ethiopia and they estimate a multinomial endogenous switching regression model of climate change adaptation and crop net revenues and implement a counterfactual analysis.
This paper examines the adverse effect of natural resources scarcity on children's schooling and the possible gender bias of resource collection work against girls' schooling. It uses cross-sectional data on 316 children aged 7–18 years collected from 120 rural households in Tigray, northern Ethiopia. The two-stage conditional maximum likelihood estimation technique is employed to take care of endogeneity between schooling and collection intensity decisions.
This book is about land tenure policies from an international perspective. It adds on the first book published by Holden and Otsuka entitled The Emergence of Land Markets in Africa: Assessing the Impacts on Poverty, Equity, and Efficiency (2009) in a much deeper way with a stronger and clearer focus on policy issues.