Estimating Returns to Soil and Water Conservation Investments: An Application to Crop Yield in Kenya

The authors investigated the impact of soil and water conservation (SWC) investment on farm productivity in Kenya. They focused on plots with and without SWC, testing whether increased SWC is beneficial for yield and affects input levels, input returns, and crop characteristics.

The mixed results showed that plots without SWC have higher yield values, although plots with SWC are significantly steeper and more eroded. A two-stage random effects switching regression estimation indicated that SWC increased returns from degraded plots and other inputs. A simulation exercise showed that adoption has been beneficial to plots with SWC and would be beneficial for plots without it.