IDEAS home Printed from https://ideas.repec.org/a/eee/ecolec/v108y2014icp1-7.html
   My bibliography  Save this article

Economic incentives and natural resource management among small-scale farmers: Addressing the missing link

Author

Listed:
  • Getnet, Kindie
  • Pfeifer, Catherine
  • MacAlister, Charlotte

Abstract

Small-scale farmers face numerous challenges to invest in natural resource management practices. The problems are interlinked, with such perverse economic problems as high transaction costs and risk rooted in the lack of comprehensive institutional and organizational services to farmers for risk reduction and incentive creation. Failure to address such a missing link undermines success in natural resource management. This paper ponders the importance of such a missing link and proposes analytic framework that explicitly integrates the economics of natural resource management into institutional and organizational analysis. The framework features the instrumentality of integrated institutional and organizational innovation to create opportunities and incentives to small-scale farmers to encourage investment in natural resource management practices.

Suggested Citation

  • Getnet, Kindie & Pfeifer, Catherine & MacAlister, Charlotte, 2014. "Economic incentives and natural resource management among small-scale farmers: Addressing the missing link," Ecological Economics, Elsevier, vol. 108(C), pages 1-7.
  • Handle: RePEc:eee:ecolec:v:108:y:2014:i:c:p:1-7
    DOI: 10.1016/j.ecolecon.2014.09.018
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0921800914002882
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ecolecon.2014.09.018?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Barrett, Christopher B. & Lee, David R. & McPeak, John G., 2005. "Institutional Arrangements for Rural Poverty Reduction and Resource Conservation," World Development, Elsevier, vol. 33(2), pages 193-197, February.
    2. Oweis, T. & Hachum, A., 2009. "Supplemental irrigation for improved rainfed agriculture in WANA region," IWMI Books, Reports H041999, International Water Management Institute.
    3. Shively, Gerald E., 1997. "Consumption risk, farm characteristics, and soil conservation adoption among low-income farmers in the Philippines," Agricultural Economics, Blackwell, vol. 17(2-3), pages 165-177, December.
    4. Niesten, Eduard & Gjertsen, Heidi & Fong, Patrick S., 2013. "Incentives for marine conservation: options for small island developing states," Environment and Development Economics, Cambridge University Press, vol. 18(4), pages 440-458, August.
    5. Andrew Dorward & Jonathan Kydd & Colin Poulton & Dirk Bezemer, 2009. "Coordination Risk and Cost Impacts on Economic Development in Poor Rural Areas," Journal of Development Studies, Taylor & Francis Journals, vol. 45(7), pages 1093-1112, August.
    6. Lutz, Ernst & Pagiola, Stefano & Reiche, Carlos, 1994. "The Costs and Benefits of Soil Conservation: The Farmers' Viewpoint," The World Bank Research Observer, World Bank, vol. 9(2), pages 273-295, July.
    7. Rahman, H.M. Tuihedur & Hickey, Gordon M. & Sarker, Swapan Kumar, 2012. "A framework for evaluating collective action and informal institutional dynamics under a resource management policy of decentralization," Ecological Economics, Elsevier, vol. 83(C), pages 32-41.
    8. Rosenzweig, Mark R & Binswanger, Hans P, 1993. "Wealth, Weather Risk and the Composition and Profitability of Agricultural Investments," Economic Journal, Royal Economic Society, vol. 103(416), pages 56-78, January.
    9. Teklewold, Hailemariam & Köhlin, Gunnar, 2010. "Risk Preferences as Determinants of Soil Conservation Decisions in Ethiopia," RFF Working Paper Series dp-10-19-efd, Resources for the Future.
    10. Alauddin, Mohammad & Quiggin, John, 2008. "Agricultural intensification, irrigation and the environment in South Asia: Issues and policy options," Ecological Economics, Elsevier, vol. 65(1), pages 111-124, March.
    11. Templeton, Scott R. & Scherr, Sara J., 1997. "Population pressure and the microeconomy of land management in hills and mountains of developing countries:," EPTD discussion papers 26, International Food Policy Research Institute (IFPRI).
    12. World Bank, 2006. "Sustainable Land Management : Challenges, Opportunities, and Trade-offs," World Bank Publications - Books, The World Bank Group, number 7132, December.
    13. Oliver E. Williamson, 2000. "The New Institutional Economics: Taking Stock, Looking Ahead," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 595-613, September.
    14. Konrad Hagedorn, 2008. "Particular requirements for institutional analysis in nature-related sectors," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 35(3), pages 357-384, September.
    15. Molden, David, 2007. "Water for food, water for life: a comprehensive assessment of water management in agriculture," IWMI Books, Reports H040193, International Water Management Institute.
    16. Haileslassie, A. & Hagos, Fitsum & Mapedza, Everisto & Sadoff, Claudia W. & Awulachew, Seleshi Bekele & Gebreselassie, S. & Peden, D., 2008. "Institutional settings and livelihood strategies in the Blue Nile Basin: implications for upstream/downstream linkages," IWMI Working Papers H041835, International Water Management Institute.
    17. de Janvry, Alain & Fafchamps, Marcel & Sadoulet, Elisabeth, 1991. "Peasant Household Behaviour with Missing Markets: Some Paradoxes Explained," Economic Journal, Royal Economic Society, vol. 101(409), pages 1400-1417, November.
    18. Mahmud Yesuf & Randall A. Bluffstone, 2009. "Poverty, Risk Aversion, and Path Dependence in Low-Income Countries: Experimental Evidence from Ethiopia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(4), pages 1022-1037.
    19. Binswanger, Hans P & McIntire, John, 1987. "Behavioral and Material Determinants of Production Relations in Land-Abundant Tropical Agriculture," Economic Development and Cultural Change, University of Chicago Press, vol. 36(1), pages 73-99, October.
    20. Fox, P. & Rockstrom, J. & Barron, J., 2005. "Risk analysis and economic viability of water harvesting for supplemental irrigation in semi-arid Burkina Faso and Kenya," Agricultural Systems, Elsevier, vol. 83(3), pages 231-250, March.
    21. Wani, S. P. & Rockstrom, J. & Oweis, T., 2009. "Rainfed agriculture: unlocking the potential," IWMI Books, Reports H042126, International Water Management Institute.
    22. de Janvry, Alain & Fafchamps, M. & Sadoulet, Elisabeth, 1991. "Peasant Household Behavior with Missing Markets: Some Paradoxes Explain," CUDARE Working Papers 198579, University of California, Berkeley, Department of Agricultural and Resource Economics.
    23. Gamini Herath, 2005. "Analysis of the potential and problems of new institutional economics for third world development," International Journal of Social Economics, Emerald Group Publishing, vol. 32(10), pages 877-892, October.
    24. Molden, David, 2007. "Water for food, water for life: a comprehensive assessment of water management in agriculture: summary. In Russian," IWMI Books, Reports H041260, International Water Management Institute.
    25. Rao, C.A. Rama & Kareemulla, Kalakada & Nagasree, K. & Venkateswarlu, B. & Kumar, Shalander, 2010. "Estimation of Economic Returns to Soil and Water Conservation Research – An Ex Ante Analysis," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 23(1), January.
    26. Gerald E. Shively, 1997. "Consumption risk, farm characteristics, and soil conservation adoption among low‐income farmers in the Philippines," Agricultural Economics, International Association of Agricultural Economists, vol. 17(2-3), pages 165-177, December.
    27. Ananda, Jayanath & Herath, Gamini, 2009. "A critical review of multi-criteria decision making methods with special reference to forest management and planning," Ecological Economics, Elsevier, vol. 68(10), pages 2535-2548, August.
    28. Rockström, Johan & Karlberg, Louise & Wani, Suhas P. & Barron, Jennie & Hatibu, Nuhu & Oweis, Theib & Bruggeman, Adriana & Farahani, Jalali & Qiang, Zhu, 2010. "Managing water in rainfed agriculture--The need for a paradigm shift," Agricultural Water Management, Elsevier, vol. 97(4), pages 543-550, April.
    29. Molden, David, 2007. "Water for food, water for life: a comprehensive assessment of water management in agriculture: summary. In Arabic," IWMI Books, Reports H041261, International Water Management Institute.
    30. Alauddin, Mohammad, 2004. "Environmentalizing economic development: a South Asian perspective," Ecological Economics, Elsevier, vol. 51(3-4), pages 251-270, December.
    31. Wani, S. P. & Rockstrom, J. & Oweis, T., 2009. "Rainfed agriculture: unlocking the potential," IWMI Books, Reports H041989, International Water Management Institute.
    32. Clemens, Bruce, 2006. "Economic incentives and small firms: Does it pay to be green?," Journal of Business Research, Elsevier, vol. 59(4), pages 492-500, April.
    33. John M. Antle & Bocar Diagana, 2003. "Creating Incentives for the Adoption of Sustainable Agricultural Practices in Developing Countries: The Role of Soil Carbon Sequestration," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(5), pages 1178-1184.
    34. Edward B. Barbier, 1990. "The Farm-Level Economics of Soil Conservation: The Uplands of Java," Land Economics, University of Wisconsin Press, vol. 66(2), pages 199-211.
    35. Pathak, P. & Sahrawat, K. L. & Wani, S. P. & Sachan, R. C. & Sudi, R., 2009. "Opportunities for water harvesting and supplemental irrigation for improving rainfed agriculture in semi-arid areas," IWMI Books, Reports H042000, International Water Management Institute.
    36. North, Douglass C., 1971. "Institutional Change and Economic Growth," The Journal of Economic History, Cambridge University Press, vol. 31(1), pages 118-125, March.
    37. Molden, David, 2007. "Water for food, water for life: a comprehensive assessment of water management in agriculture: summary," IWMI Books, Reports H039769, International Water Management Institute.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:zbw:iamodp:234108 is not listed on IDEAS
    2. Schott, Johanna & Kalatas, Talin & Nercissians, Emilia & Barkmann, Jan & Shelia, Vakhtang, 2016. "The impact of protected areas on local livelihoods in the South Caucasus," IAMO Discussion Papers 234108, Institute of Agricultural Development in Transition Economies (IAMO).
    3. Schott, Johanna & Kalatas, Talin & Nercissians, Emilia & Barkmann, Jan & Shelia, Vakhtang, 2016. "The impact of protected areas on local livelihoods in the South Caucasus [Naturschutzgebiete und ihre Auswirkungen auf die Erwerbsquellen der lokalen Anrainerbevölkerung im Südkaukasus]," IAMO Discussion Papers 152, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cenacchi, Nicola, 2014. "Drought risk reduction in agriculture: A review of adaptive strategies in East Africa and the Indo-Gangetic plain of South Asia:," IFPRI discussion papers 1372, International Food Policy Research Institute (IFPRI).
    2. Sharma, Bharat & Molden, D. & Cook, Simon, 2015. "Water use efficiency in agriculture: measurement, current situation and trends," IWMI Books, Reports H046807, International Water Management Institute.
    3. Descheemaeker, K. & Bunting, S. W. & Bindraban, P. & Muthuri, C. & Molden, D. & Beveridge, M. & van Brakel, Martin & Herrero, M. & Clement, Floriane & Boelee, Eline & Jarvis, D. I., 2013. "Increasing water productivity in Agriculture," Book Chapters,, International Water Management Institute.
    4. Sharma, Bharat & Molden, D. & Cook, Simon, 2015. "Water use efficiency in agriculture: measurement, current situation and trends," Book Chapters,, International Water Management Institute.
    5. K. H. Anantha & Suhas P. Wani, 2016. "Evaluation of cropping activities in the Adarsha watershed project, southern India," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 8(5), pages 885-897, October.
    6. Giordano, Meredith & Turral, H. & Scheierling, S. M. & Treguer, D. O. & McCornick, Peter G, 2017. "Beyond “More Crop per Drop”: evolving thinking on agricultural water productivity," IWMI Research Reports 257962, International Water Management Institute.
    7. Feng Huang & Baoguo Li, 2020. "What is the Redline Water Withdrawal for Crop Production in China?—Projection to 2030 Derived from the Past Twenty-Year Trajectory," Sustainability, MDPI, vol. 12(10), pages 1-14, May.
    8. Getnet, Kindie & MacAlister, Charlotte, 2012. "Integrated innovations and recommendation domains: Paradigm for developing, scaling-out, and targeting rainwater management innovations," Ecological Economics, Elsevier, vol. 76(C), pages 34-41.
    9. Malte Müller & Jens Rommel & Christian Kimmich, 2018. "Farmers’ Adoption of Irrigation Technologies: Experimental Evidence from a Coordination Game with Positive Network Externalities in India," German Economic Review, Verein für Socialpolitik, vol. 19(2), pages 119-139, May.
    10. Pathak, P. & Sudi, R. & Wani, S.P. & Sahrawat, K.L., 2013. "Hydrological behavior of Alfisols and Vertisols in the semi-arid zone: Implications for soil and water management," Agricultural Water Management, Elsevier, vol. 118(C), pages 12-21.
    11. Shively, Gerald E., 2001. "Poverty, consumption risk, and soil conservation," Journal of Development Economics, Elsevier, vol. 65(2), pages 267-290, August.
    12. Nunez, Paula & Colmenero, Alberto, 2011. "Ague, agricultura y desarrollo: avances y retos para la reduccion de la pobreza," Revista Espanola de Estudios Agrosociales y Pesqueros, Ministerio de Medio Ambiente, Rural y Marino (formerly Ministry of Agriculture), issue 230, pages 1-28.
    13. Cai, Xueliang & Sharma, Bharat R. & Matin, Mir Abdul & Sharma, Devesh & Gunasinghe, Sarath, 2010. "An assessment of crop water productivity in the Indus and Ganges River Basins: current status and scope for improvement," IWMI Research Reports 112970, International Water Management Institute.
    14. Mohammad Alauddin & Upali A. Amarasinghe & Bharat R. Sharma, 2014. "Four decades of rice water productivity in Bangladesh: A spatio-temporal analysis of district level panel data," Economic Analysis and Policy, Elsevier, vol. 44(1), pages 51-64.
    15. Batidzirai, B. & Smeets, E.M.W. & Faaij, A.P.C., 2012. "Harmonising bioenergy resource potentials—Methodological lessons from review of state of the art bioenergy potential assessments," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(9), pages 6598-6630.
    16. Haile, Kaleab K. & Nillesen, Eleonora & Tirivayi, Nyasha, 2020. "Impact of formal climate risk transfer mechanisms on risk-aversion: Empirical evidence from rural Ethiopia," World Development, Elsevier, vol. 130(C).
    17. repec:kqi:journl:2017-2-1-2 is not listed on IDEAS
    18. Rosa Francaviglia & Claudia Di Bene, 2019. "Deficit Drip Irrigation in Processing Tomato Production in the Mediterranean Basin. A Data Analysis for Italy," Agriculture, MDPI, vol. 9(4), pages 1-14, April.
    19. Malin Falkenmark, 2013. "Adapting to climate change: towards societal water security in dry-climate countries," International Journal of Water Resources Development, Taylor & Francis Journals, vol. 29(2), pages 123-136, June.
    20. Asfaw, Solomon & Scognamillo, Antonio & Caprera, Gloria Di & Sitko, Nicholas & Ignaciuk, Adriana, 2019. "Heterogeneous impact of livelihood diversification on household welfare: Cross-country evidence from Sub-Saharan Africa," World Development, Elsevier, vol. 117(C), pages 278-295.
    21. Kherbache, Nabil & Oukaci, Kamal, 2020. "Assessment of capital expenditure in achieving sanitation-related MDG targets and the uncertainties of the SDG targets in Algeria," World Development Perspectives, Elsevier, vol. 19(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:108:y:2014:i:c:p:1-7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolecon .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.