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Social Capital, climate change and soil conservation investment: panel data evidence from the Highlands of Ethiopia

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  • Mintewab Bezabih
  • Abe Damte Beyene
  • Zenebe Gebreegziabher
  • Livousew Borga
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    Abstract

    The paper analyses the impact of climate change and local social networks on farmers’ soil conservation behaviour in the Central Highlands of Ethiopia. Farm household level panel data with multiple plots combined with climate data from the adjacent meteorological stations, interpolated at a household level, are employed in the analysis. The extent to which local social networks contribute to soil conservation investment in the presence of climate change is assessed using multivariate probit and poison estimation methods. In light of similar previous studies, the major contributions of the paper are: 1) the use of wide ranging social capital measures, and 2) the availability of different soil conservation structures in multiple plots within the same household. The results show that climate change is a significant determinant of soil conservation investment. In addition, the relationship between local social networks and soil conservation is context specific.

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    Bibliographic Info

    Paper provided by Grantham Research Institute on Climate Change and the Environment in its series Grantham Research Institute on Climate Change and the Environment Working Papers with number 115.

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    Date of creation: Jun 2013
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    Handle: RePEc:lsg:lsgwps:wp115

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    1. Kato, Edward & Ringler, Claudia & Yesuf, Mahmud & Bryan, Elizabeth, 2009. "Soil and water conservation technologies: A buffer against production risk in the face of climate change?: Insights from the Nile Basin in Ethiopia," IFPRI discussion papers 871, International Food Policy Research Institute (IFPRI).
    2. Pramila Krishnan & Stefan Dercon, 1997. "In sickness and in health ... risk-sharing within households in rural Ethiopia," CSAE Working Paper Series 1997-12, Centre for the Study of African Economies, University of Oxford.
    3. Fankhauser, Samuel & Smith, Joel B. & Tol, Richard S. J., 1999. "Weathering climate change: some simple rules to guide adaptation decisions," Ecological Economics, Elsevier, vol. 30(1), pages 67-78, July.
    4. 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.
    5. Deressa, Temesgen & Hassan, Rashid M. & Ringler, Claudia, 2008. "Measuring Ethiopian farmers' vulnerability to climate change across regional states:," IFPRI discussion papers 806, International Food Policy Research Institute (IFPRI).
    6. Coate, Stephen & Ravallion, Martin, 1993. "Reciprocity without commitment : Characterization and performance of informal insurance arrangements," Journal of Development Economics, Elsevier, vol. 40(1), pages 1-24, February.
    7. Gebremedhin, Berhanu & Swinton, Scott M., 2002. "Investment In Soil Conservation In Northern Ethiopia: The Role Of Land Tenure Security And Public Programs," Staff Papers 11749, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    8. Adesina, Akinwumi A. & Zinnah, Moses M., 1993. "Technology characteristics, farmers' perceptions and adoption decisions: A Tobit model application in Sierra Leone," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 9(4), December.
    9. Menale Kassie & John Pender & Mahmud Yesuf & Gunnar Kohlin & Randy Bluffstone & Elias Mulugeta, 2008. "Estimating returns to soil conservation adoption in the northern Ethiopian highlands," Agricultural Economics, International Association of Agricultural Economists, vol. 38(2), pages 213-232, 03.
    10. Timothy Besley, 1995. "Nonmarket Institutions for Credit and Risk Sharing in Low-Income Countries," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 115-127, Summer.
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