This study measured the discount rates of 262 farm households in the Ethiopian highlands, using a time preference experiment with real payoffs. In general, the median discount rate was very high and varied systematically with wealth and risk aversion. Our findings, however, warn that rates-of-time preferences (RTPs) and risk aversion reinforce each other and are easily confused. Because the RTPs were so high, what seem like profitable investments from the outside might not seem so from the farmers’ perspectives.
Soil Conservation and Small-Scale Food Production in Highland Ethiopia: A Stochastic Metafrontier Approach
This study used the newly developed metafrontier approach to assess the technical efficiency of small-scale food production in the Ethiopian highlands at plot level, in order to investigate the role of soil conservation technology in enhancing agricultural productivity.
Biomass Fuel Consumption and Dung Use as Manure: Evidence from Rural Households in the Amhara Region of Ethiopia
Fertilizer use (including dung) in Ethiopia is low, particularly in the northern highlands, where dung is a significant source of household fuel.
The Role of Production Risk in Sustainable Land-Management Technology Adoption in the Ethiopian Highlands
The empirical analysis in this paper shows that production risk plays a significant role in sustainable land-management technology adoption in the Ethiopian highlands.
The Role of Soil Conservation on Mean Crop Yield and Variance of Yield: Evidence from the Ethiopian Highlands
Stone bunds in the Ethiopian highlands showed statistically significant and positive impact on yield in low-rainfall areas, but not in high-rainfall areas, and they did not have a statistically significant impact on production risk in either area.
Measuring and analyzing the impact of fanya juu bunds on the value of crop production in Ethiopian highlands with high rainfall had the surprising conclusion that this technology reduced soil erosion and off-site effects at the expense of lower value of crop production and, hence, poor Ethiopian farmers.
This artefactual experiment in Ethiopia tested the hyperbolic discounting hypothesis by comparing time discounting over cash and consumption goods, using real payoffs. It found no difference in elicited time preferences between cash and consumption goods (tradable or final), which could be the result of missing markets in rural Ethiopia, and there was some evidence of time-inconsistent preferences.
Market Imperfections and Farm Technology Adoption Decisions: A Case Study from the Highlands of Ethiopia
This examination of the impacts of market and institutional imperfections on technology adoption found that Ethiopian farmers’ decisions to adopt fertilizer significantly and negatively depended on whether they also adopted soil conservation, but not vice versa. Market imperfections were significant factors in explaining variations in decisions to adopt farm technology, such that relieving market imperfections could increase adoption of farm technologies.
This brief is a summary of the main outcomes of a forest policy workshop on “Policies to increase forest cover in Ethiopia” held on 18-19 September 2007 in Addis Ababa, Ethiopia.
Proceedings of a policy workshop on Policies to increase forest cover in Ethiopia held on 18-19 September 2007 at Global Hotel, Addis Ababa, Ethiopia
Community forestry projects in Ethiopia have been implemented using the top–down approach, which may have contributed to the failure of most of these projects. The so-called community plantations practically belonged to the government and the labour contribution of the local communities in the establishment of the plantations was mainly in exchange for wages.
Agrobiodiversity conservation under an imperfect seed system: the role of Community Seed Banking schemes
The study is an empirical investigation of agrobiodiversity conservation decisions of small farmers in the central highlands of Ethiopia.
Land degradation in the form of soil erosion and nutrient depletion presents a threat to food security and sustainability of agricultural production in many developing countries. Governments and development agencies have invested substantial resources to promote soil conservation practices as part of an effort to improve environmental conditions and reduce poverty.
Livelihoods in low-income developing countries are generally undiversified and focus on crop production and animal raising. These activities are inherently risky and investment and production decisions by farm households are therefore made within environments that are affected by risk.
We tested a theoretical model with the Marshallian inefficiency (H1) and threat of eviction (H2) hypotheses having opposite effects on land productivity on sharecropped plots. The model also assumes that kinship contracts may eliminate or reduce the Marshallian inefficiency (H3) and threat of eviction (H4) effects on land productivity.
In the highlands of Ethiopia, livestock as an important component of the mixed farming system perform multiple functions providing high quality food, draft power and manure for crop production, and cash income. Field studies in different parts of the country in the 1980s showed that livestock account for 37-87% of total farm cash income of farmers, indicating the importance of livestock in rural livelihood, especially as one moves from mixed farming in the highlands to agropastoral systems on the highland-lowland margins (Gryseels, 1988).
This paper reports the results of a stated preference survey in the highlands of Ethiopia where the farmers are given a choice between an agricultural extension package and a local public - representing two major developing strategies. The study finds that a majority of people prefers the public good.
Contingent valuation of community plantations in Ethiopia: a look into value elicitation formats and intra-household preference variations
This paper is an application of the contingent valuation method on community plantations in the highlands of Ethiopia. A discrete-continuous elicitation format was applied.
The paper uses a non-separable agricultural household model to examine biomass fuel collection and consumption behaviour of Ethiopian rural households.
Ethiopia aims to build a green economy and to follow a growth path that fosters sustainable development. Through the development of its Climate-Resilient Green Economy (CRGE) strategy, which is based on carbon-neutral growth, it envisions attaining middle-income status by 2025. Improving the productivity of the agricultural sector, protecting forests, expanding the coverage of electric power from renewable sources of energy and transitioning into modern and energy-efficient technologies are the main pillars of Ethiopia’s CRGE strategy.
How can charging money for something that was free be a good idea for poor farmers? It turns out that pricing irrigation water will help improve Ethiopian farmers’ efficiency in water use, increase agricultural and food production, and make the population less vulnerable to climate change. One unique contribution of environmental economists is that they collect data from the field and then calculate what natural resources are really worth.
Forest conservation is getting more attention in Ethiopia, from the highest level of government to the community level. As part of these efforts, the EfD center in Ethiopia, Environmental Economics Policy Forum for Ethiopia (EEPFE), based at the Ethiopian Development Research Institute (EDRI), has been addressing the issue for long period of time and reflected its ideas in different forums.
In a brief interview with UNU-Wider Wisdom Akpalu, Associate Professor of Economics at SUNY-Farmingdale, NY, shares his view on the effectiveness of development knowledge aid and the impact of the “Gothenburg mafia” on Africa. A maybe misleading expression which relates to Wisdom himself and his former PhD colleagues who studied at the Environmental Economics Unit of the Economics Department at Gothenburg University.
Contrary to the notion that increased biofuels production will undermine the food security of developing countries, EfD research results show that it can increase production of both food cereals and cash crops in Ethiopia. However, the effects vary by region.
Ethiopia risking average income cut of 30 percent The impacts of climate change on agricultural productivity may reduce the Ethiopian average income by as much as 30 percent within the next 50 years. This and other EfD findings on how climate change is hitting Africa, and in particular Ethiopia, were presented to 60 workshop participants from government, NGOs and multilateral organizations assembled in Addis Abeba. Strategies for adaptation, mitigation and a stronger position in international climate negotiations were discussed.
Women’s participation in decision making and strong land tenure rights and governance are essential if REDD+ and other climate change mitigation and adaptation measures are to achieve climate goals and provide local benefits. This was a key message from over 80 delegates at the Africa Regional Dialogue.
EfD-K research fellows, Dr. Paul Guthiga, Dr. Moses Ikiara, Geophrey SIkei and Maurice Ogada all presented papers during the meeting in Ethiopia.
Ethiopia loses large amounts of money due to deforestation and soil erosion. Recent research shows in monetary terms the value of the country’s natural resources and the costs of soil degradation. It also reveals that official government reports greatly underestimate the contribution of forests and soil resources to the national economy. A way for decision makers to address the problems is to adopt natural resource accounting.
This is an example of how EfD research can influence policies for Sustainable Land Management, Forest Policy, and Climate Change Adaptation in Ethiopia.