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 Gubalafto woreda of Amhara region in 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 model revealed that adoption of row planting technology has a positive and significant impact on per capita consumption and on crop income per hectare. Covariates are well balanced and the impact estimate is insensitive to unobserved selection bias indicating that the estimates are a pure effect of the row planting technology. Marginal benefit of row planting is increasing with higher propensity of the farmer to adopt the climate smart planting technology. Therefore, scaling up the technology will significantly contribute to farmers’ resilience against the adverse effects of climate change through enhancing household’s income and food security.