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Direct and indirect effect of irrigation water availability on crop revenue in northwest Ethiopia: A structural equation model

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  • Zewdie, Markose Chekol
  • Van Passel, Steven
  • Cools, Jan
  • Tenessa, Daregot Berihun
  • Ayele, Zemen Ayalew
  • Tsegaye, Enyew Adgo
  • Minale, Amare Sewnet
  • Nyssen, Jan

Abstract

Development of a clear understanding of the relationship between the availability of dam-driven irrigation water and crop revenue is important in poverty reduction and food security process. As a result, large research efforts are devoted to understanding the relationship between the availability of irrigation water and crop revenue. However, earlier studies do have several limitations. For example, without considering its indirect effect, prior studies focused solely on the direct effect of availability of irrigation water on crop revue. In this study, using a structural equation model analysis, the direct and indirect effect of availability of dam-driven irrigation water on crop revenue is decomposed and quantified specifically for the Koga irrigation scheme, located in the Mecha district of Amhara region in Ethiopia. A primary data set was collected from a randomly selected sample of 450 households in the Koga irrigation scheme. More than half of the households (254) are supported by the Koga Dam irrigation water during the dry season, and the other 196 households depended only on rainfall. The results of the study showed that, in addition to its direct effect, the availability of irrigation water indirectly affected crop revenue through receptivity of the farmers to use modern farm inputs. Around 27 percent of the total effect of dam-driven irrigation water on crop revenue was mediated by farmers’ receptivity to use yield-enhancing modern farm inputs. The results of this study suggested that the availability of irrigation water is essential to improve both crop revenue and receptivity of the farmers to use modern farm inputs. This finding also drives a strategic framework that the receptivity of the farmers to use modern farm inputs is crucial for utilizing the positive effects of irrigation water availability on crop revenue.

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  • Zewdie, Markose Chekol & Van Passel, Steven & Cools, Jan & Tenessa, Daregot Berihun & Ayele, Zemen Ayalew & Tsegaye, Enyew Adgo & Minale, Amare Sewnet & Nyssen, Jan, 2019. "Direct and indirect effect of irrigation water availability on crop revenue in northwest Ethiopia: A structural equation model," Agricultural Water Management, Elsevier, vol. 220(C), pages 27-35.
    • Handle: RePEc:eee:agiwat:v:220:y:2019:i:c:p:27-35
    DOI: 10.1016/j.agwat.2019.04.013
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    Cited by:

    1. Markose Chekol Zewdie & Michele Moretti & Daregot Berihun Tenessa & Zemen Ayalew Ayele & Jan Nyssen & Enyew Adgo Tsegaye & Amare Sewnet Minale & Steven Van Passel, 2021. "Agricultural Technical Efficiency of Smallholder Farmers in Ethiopia: A Stochastic Frontier Approach," Land, MDPI, vol. 10(3), pages 1-17, March.
    2. Berhe, Gebremeskel Teklay & Baartman, Jantiene E.M. & Veldwisch, Gert Jan & Grum, Berhane & Ritsema, Coen J., 2022. "Irrigation development and management practices in Ethiopia: A systematic review on existing problems, sustainability issues and future directions," Agricultural Water Management, Elsevier, vol. 274(C).
    3. Annys, Sofie & Van Passel, Steven & Dessein, Joost & Adgo, Enyew & Nyssen, Jan, 2020. "From fast-track implementation to livelihood deterioration: The dam-based Ribb Irrigation and Drainage Project in Northwest Ethiopia," Agricultural Systems, Elsevier, vol. 184(C).
    4. Gezahegn, Tafesse & Van Passel, Steven & Berhanu, Tekeste & D'Haese, Marijke & Maertens, Miet, 2020. "Structural and Institutional Heterogeneity among Agricultural Cooperatives in Ethiopia: Does it Matter for Farmers’ Welfare?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 46(2), August.
    5. Zewdie, Markose Chekol & Van Passel, Steven & Moretti, Michele & Annys, Sofie & Tenessa, Daregot Berihun & Ayele, Zemen Ayalew & Tsegaye, Enyew Adgo & Cools, Jan & Minale, Amare Sewnet & Nyssen, Jan, 2020. "Pathways how irrigation water affects crop revenue of smallholder farmers in northwest Ethiopia: A mixed approach," Agricultural Water Management, Elsevier, vol. 233(C).
    6. Admasu, Wubante Fetene & Van Passel, Steven & Nyssen, Jan & Minale, Amare Sewnet & Tsegaye, Enyew Adgo, 2021. "Eliciting farmers’ preferences and willingness to pay for land use attributes in Northwest Ethiopia: A discrete choice experiment study," Land Use Policy, Elsevier, vol. 109(C).

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