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Returns to Farm‐Level Soil Conservation on Tropical Steep Slopes: The Case of the Eritrean Highlands

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  • Bereket Araya
  • John Asafu‐Adjaye

Abstract

This study conducts an economic analysis of investment in simple soil conservation technologies in the highlands of Eritrea. The data used in the analysis were obtained from a farm survey and supplemented with data from secondary sources. Risk analysis techniques are used to take account of the uncertainties regarding the relationship between soil erosion and crop yield. The financial analysis reveals negative net present values (NPVs) and internal rates of return (IRRs) below 12 per cent for various slope categories. On the other hand, the economic analysis returns positive NPVs and IRRs of over 20 per cent. The results clearly indicate that investment in soil conservation technology may not be a viable short‐term proposition from the farmer's point of view and yet the net social benefits are positive. There is a strong case for government to provide incentives for soil conservation in view of the economic benefits.

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  • Bereket Araya & John Asafu‐Adjaye, 1999. "Returns to Farm‐Level Soil Conservation on Tropical Steep Slopes: The Case of the Eritrean Highlands," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(3), pages 589-605, September.
    • Handle: RePEc:bla:jageco:v:50:y:1999:i:3:p:589-605
    DOI: 10.1111/j.1477-9552.1999.tb00900.x
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    References listed on IDEAS

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    1. Ervin, David E. & Mill, John W., 1985. "Agricultural Land Markets and Soil Erosion: Policy Relevance and Conceptual Issues," 1985 Annual Meeting, August 4-7, Ames, Iowa 278510, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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    1. Calatrava-Leyva, Javier & Franco, Juan Agustin & Gonzalez-Roa, Maria del Carmen, 2005. "Adoption of Soil Conservation Practices in Olive Groves: The Case of Spanish Mountainous Areas," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24661, European Association of Agricultural Economists.
    2. Shiro Mukai, 2023. "Collective Resource Management and Labor Quota Systems for Sustainable Natural Resource Management in Semi-Arid Ethiopia," Land, MDPI, vol. 12(9), pages 1-31, August.
    3. Abdulla, Majd, 2009. "The impact of ownership on Iowa land owners' decisions to adopt conservation practices," ISU General Staff Papers 200901010800001913, Iowa State University, Department of Economics.
    4. Franco, Juan Agustin & Calatrava-Leyva, Javier, 2006. "Adoption of Soil Erosion Control Practices in Southern Spain Olive Groves," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25787, International Association of Agricultural Economists.
    5. Zhunusova, Eliza & Kyalo Willy, Daniel & Holm-Müller, Karin, 2013. "An Analysis of Returns to Integrated Soil Conservation Practices in the Lake Naivasha Basin, Kenya," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 160676, African Association of Agricultural Economists (AAAE).
    6. Bazzana, Davide & Gilioli, Gianni & Simane, Belay & Zaitchik, Benjamin, 2021. "Analyzing constraints in the water-energy-food nexus: The case of eucalyptus plantation in Ethiopia," Ecological Economics, Elsevier, vol. 180(C).

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