The study is an empirical investigation of agrobiodiversity conservation decisions of small farmers in the central highlands of Ethiopia.
The primary objective is tomeasure the effectiveness of Community Seed Banking (CSB) in enhancing diversity while providing productivity incentives. Our results indicate a significant impact of participation in CSB on farm-level agrobiodiversity. However, the level of biodiversity conservation was not found to have the expected reinforcing impact on participation, indicating no support for simultaneity. CSB participation also led to an increase in productivity, consistent with a need for such incentives in order to enhance diversity at a farm level. Our assessment of the performance of the GLS estimator yielded a significant discrepancy between the GLS and bootstrap estimates. This led to the conclusion that bootstrapping asymptotic estimations might be required for appropriate inference.