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Institutions, sustainable land use and consumer welfare: the case of forest and grazing lands in northern Ethiopia

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  • Gebreegziabher, Zenebe
  • Gebremedhin, Berhanu
  • Mekonnen, Alemu

Abstract

Land is an essential factor of production. Institutions that govern its efficient use determine the sustainability of this essential resource. In Ethiopia all land is publicly owned. Such an institutional setting is said to have resulted in the major degradation of Ethiopia's land resources and dissipation of the resource rent. An alternative to this is assigning a private property institution. In this paper, we examine the consumer welfare effects of a change in the institutional setting on communal forest and grazing lands, using a cross-section data set of 200 households in Northern Ethiopia. Findings suggest that changing the current institutional setting could indeed be welfare reducing.

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  • Gebreegziabher, Zenebe & Gebremedhin, Berhanu & Mekonnen, Alemu, 2012. "Institutions, sustainable land use and consumer welfare: the case of forest and grazing lands in northern Ethiopia," Environment and Development Economics, Cambridge University Press, vol. 17(01), pages 21-40, February.
  • Handle: RePEc:cup:endeec:v:17:y:2012:i:01:p:21-40_00
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    Cited by:

    1. Akpalu, Wisdom & Bezabih, Mintewab, 2014. "Tenure insecurity, climate variability, and renting-out decisions among female small-holder farmers in Ethiopia," WIDER Working Paper Series 140, World Institute for Development Economic Research (UNU-WIDER).
    2. Wisdom Akpalu & Mintewab Bezabih, 2015. "Tenure Insecurity, Climate Variability and Renting out Decisions among Female Small-Holder Farmers in Ethiopia," Sustainability, MDPI, Open Access Journal, vol. 7(6), pages 1-16, June.

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