Economics of Soil Conservation Adoption in High-Rainfall Areas of the Ethiopian Highlands
AbstractThis study measures the impact of fanya juu bunds (an important soil and water conservation technology and the most popular type of contour bund in east Africa) on the value of crop production in a high-rainfall area in the Ethiopian highlands using cross-sectional multiple plot observations. We applied switching regression, stochastic dominance analysis (SDA), and decomposition and propensity score matching methods to ensure robustness. The switching regression, SDA, and decomposition analyses relied on matched observations, which was important because regression and SDA often do not ensure that comparable plots with conservation technology (conserved) and plots without (unconserved) actually exist in the distribution of covariates. All models told a consistent story that the value of crop production for plots with bunds was lower than for plots without bunds. In addition, the yield decomposition results showed that, although there was little difference in endowments between conserved and unconserved plots, the returns to endowments were substantially higher for unconserved plots. Based on these findings, it was hard to avoid the conclusion that these technologies might reduce soil erosion and associated off-site effects, but they did so at the expense of poor farmers in the Ethiopian highlands. We concluded that unless productivity was increased—for example by increasing fodder grass production on bunds—fanya juu bunds reduced on-farm production and therefore could not be characterized as a “win-win” measure to reduce soil erosion.
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Bibliographic InfoPaper provided by Resources For the Future in its series Discussion Papers with number dp-08-09-efd.
Date of creation: 07 Mar 2008
Date of revision:
Ethiopia; soil conservation; matched data; decomposition;
Other versions of this item:
- Kassie, Menale & Holden, Stein & Köhlin, Gunnar & Bluffstone, Randy, 2009. "Economics of Soil Conservation Adoption in High-Rainfall Areas of the Ethiopian Highlands," Working Papers in Economics 400, University of Gothenburg, Department of Economics.
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
- Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
- Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
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