This article uses househld panel data spanning the period 2000–2007 to test hypotheses from the literature that secure land tenure, market access and collective action promote accumulation of private capital assets in rural highland Ethiopia. The three natural capital assets analysed in the article, livestock, eucalyptus trees and non-eucalyptus trees on households’ farm plots, make up virtually 100 per cent of privately held disposable assets. Incomes and capital stocks are extremely low and constant and tree assets are at least as important as livestock.

This article investigates the role of institutional isolation on the adoption of soil conservation technologies in Kenya. The study is based on the theory of induced technical and institutional innovations and on the literature on land tenure security and investment incentives. A multinomial logit model for adoption of various soil conservation investments (SCI) is estimated.