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The Effect of Irrigation on Poverty Reduction, Asset Accumulation, and Informal Insurance: Evidence from Northern Mali

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  • Dillon, Andrew

Abstract

The impact of small-scale irrigation investments on household consumption, assets, and informal insurance is estimated from a panel of Northern Malian households (1998–2006). Access to irrigation increases household consumption by 27–30% relative to water-recession and rain-fed cultivators. The paper also investigates whether irrigation has secondary impacts on risk-mitigating strategies by reducing covariate risk and reinforcing informal food sharing networks that allow households to insure against idiosyncratic risk. We find that households with irrigation save between 4.5 and 6.4 more tropical livestock units and are 20% more likely to engage in informal food sharing with non-irrigators. This finding suggests that impact estimates that rely on consumption, may underestimate welfare gains by ignoring the household’s savings behavior and informal insurance network.

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  • Dillon, Andrew, 2011. "The Effect of Irrigation on Poverty Reduction, Asset Accumulation, and Informal Insurance: Evidence from Northern Mali," World Development, Elsevier, vol. 39(12), pages 2165-2175.
  • Handle: RePEc:eee:wdevel:v:39:y:2011:i:12:p:2165-2175
    DOI: 10.1016/j.worlddev.2011.04.006
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    Cited by:

    1. Aravind Moorthy & Thomas Coen & Katie Naeve & Jeremy Brecher-Haimson & Sarah Hughes, "undated". "Evaluation of the Irrigation and Water Resource Management Project in Senegal: Design Report," Mathematica Policy Research Reports c9f29d5746b14250b145a2030, Mathematica Policy Research.
    2. Christopher Ksoll & Chantal Toledo & Seth Morgan & Anca Dumitrescu & Kristen Velyvis, "undated". "Evaluation of the Burkina Faso Agriculture Development Project: Design Report," Mathematica Policy Research Reports 1eb478039edc4b0eaaa6144ba, Mathematica Policy Research.
    3. Olwande, John & Smale, Melinda, 2014. "Commercialization Effects On Household Income, Poverty, And Diversification: A Counterfactual Analysis Of Maize Farmers In Kenya," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170028, Agricultural and Applied Economics Association.
    4. repec:eee:jfpoli:v:76:y:2018:i:c:p:70-80 is not listed on IDEAS
    5. Mason, Nicole M. & Wineman, Ayala & Kirimi, Lilian & Mather, David, 2016. "The Effects of Kenya’s ‘Smarter’ Input Subsidy Program on Smallholder Behavior and Incomes: Do Different Quasi-Experimental Approaches Lead to the Same Conclusions?," Food Security Collaborative Working Papers 232090, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    6. repec:bla:jageco:v:68:y:2017:i:1:p:45-69 is not listed on IDEAS
    7. Miyazaki, Suguru & Shimamura, Yasuharu, 2014. "Risk, Infrastructure, and Rural Market Integration: Implications of Infrastructure Provision for Food Markets and Household Consumption in Rural Indonesia," Working Papers 81, JICA Research Institute.
    8. Wang, Yahua & Chen, Chunliang & Araral, Eduardo, 2016. "The Effects of Migration on Collective Action in the Commons: Evidence from Rural China," World Development, Elsevier, vol. 88(C), pages 79-93.
    9. Garbero, Alessandra & Songsermsawas, Tisorn, 2016. "Impact of modern irrigation on household production and welfare outcomes: Evidence from the PASIDP project in Ethiopia," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235949, Agricultural and Applied Economics Association.

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