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Do economic incentives crowd out motivation for communal land conservation in Ethiopia?

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  • Oniki, Shunji
  • Berhe, Melaku
  • Negash, Teklay
  • Etsay, Haftu

Abstract

Many donor agencies give local residents in developing countries economic incentives to participate in activities related to the conservation of natural resources. The motivation crowding theory predicts that people's intrinsic motivation for conservation will decay after the initial monetary incentives are withdrawn. The purpose of this study was to show the effects of economic incentives on farmers' willingness to participate in a communal forest conservation initiative, using a simple questionnaire survey. We conducted a survey and collected household data from 782 farmers in 14 villages in the northern Ethiopian highlands and randomly placed them into two groups to compare their willingness to participate in conservation activities with and without economic incentives. The results of econometric analyses reveal that payments to farmers reduce their intrinsic motivations for conservation. When the incentive was introduced and later removed, the participation rate was lower than in the original situation of no incentive. The introduction of a penalty for non-participation also reduces the motivation for conservation. The motivation is also lower for projects managed by external organizations rather than self-governed systems. These findings suggest that intervention programs for natural resource management should consider the sustainability of local people's motivations for conservation.

Suggested Citation

  • Oniki, Shunji & Berhe, Melaku & Negash, Teklay & Etsay, Haftu, 2023. "Do economic incentives crowd out motivation for communal land conservation in Ethiopia?," Forest Policy and Economics, Elsevier, vol. 150(C).
    • Handle: RePEc:eee:forpol:v:150:y:2023:i:c:s1389934123000436
    DOI: 10.1016/j.forpol.2023.102948
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