This study provides empirical evidence on the effects of production risk on smallholder farmers’ adoption of farm technology, using plot-level data collected from two semi-arid districts in Kenya, Machakos and Taita Taveta.

The Environment for Development initiative started in 2007 and this is the report for the first three-year period.

EfD is an initiative to support environmental economics capacity to conduct research, academic training and policy outreach.

The six EfD centers are expected to make a difference by contributing to better environmental management and thereby reducing poverty in developing countries.

Improving soil carbon through conservation agriculture in developing countries may generate some private benefits to farmers, as well as sequester carbon emissions, which is a positive externality to society. Leaving crop residue on the farm has become an important option in conservation agriculture practice. However, in developing countries, using crop residue for conservation agriculture has the opportunity cost of feed for livestock.

Knowing the local opportunity costs of restricting access to forest land and resources for conservation purposes is an important input to the design of cost-effective conservation schemes that minimize adverse effects on poor forest users.

Poor Kenyan farmers in rain-fed, risky environments are reluctant to adopt new technologies with potential production gain because of enormous downside risks.