Are Agricultural Extension Packages What Ethiopian Farmers Want? A Stated Preference Analysis
AbstractThere is an evident dichotomy in many rural development policies in the world between extension driven adoption of modern inputs and community driven local public goods. However, the target populations of these policies seldom have the possibility to express their preference between these two policies. In this paper we report the results of a stated preference survey in the highlands of Ethiopia where the farmers are given a choice between an agricultural extension package and a local public good - health care or protected spring. The study finds that a majority of people prefers the public good. However, when the extension package is combined with insurance in terms of no payback of the credit in case of crop loss, then we find a significant increase in the choice of the extension package. The study thus sheds light on why Ethiopia’s major development strategy has had limited success and gives evidence of how stated preference methodologies can be utilized for development policy design.
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Bibliographic InfoPaper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 172.
Length: 18 pages
Date of creation: 17 Aug 2005
Date of revision:
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Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Agricultural extension; choice experiment; local public goods; Ethiopia; Africa;
Find related papers by JEL classification:
- D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
This paper has been announced in the following NEP Reports:
- NEP-AFR-2005-09-11 (Africa)
- NEP-AGR-2005-09-11 (Agricultural Economics)
- NEP-ALL-2005-09-11 (All new papers)
- NEP-DCM-2005-09-11 (Discrete Choice Models)
- NEP-PBE-2005-09-11 (Public Economics)
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- Dercon, Stefan & Christiaensen, Luc, 2007.
"Consumption risk, technology adoption, and poverty traps : evidence from Ethiopia,"
Policy Research Working Paper Series
4257, The World Bank.
- Dercon, Stefan & Christiaensen, Luc, 2011. "Consumption risk, technology adoption and poverty traps: Evidence from Ethiopia," Journal of Development Economics, Elsevier, vol. 96(2), pages 159-173, November.
- Stefan Dercon & Luc Christiaensen, 2007. "Consumption risk, technology adoption and poverty traps: evidence from Ethiopia," CSAE Working Paper Series 2007-06, Centre for the Study of African Economies, University of Oxford.
- Stefan Dercon & Luc Christiaensen, 2007. "Consumption risk, technology adoption and poverty traps: evidence from Ethiopia," Economics Series Working Papers WPS/2007-06, University of Oxford, Department of Economics.
- Stefan Dercon & Luc Christiaensen, 2008. "Consumption risk, technology adoption and poverty traps: evidence from Ethiopia," WEF Working Papers 0035, ESRC World Economy and Finance Research Programme, Birkbeck, University of London.
- Onyenweaku, C.E & Okoye, B.C & Okorie, K.C, 2007. "Determinants of Fertilizer Adoption by Rice Farmers in Bende Local Government Area of Abia State, Nigeria," MPRA Paper 26116, University Library of Munich, Germany.
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