IDEAS home Printed from https://ideas.repec.org/a/spr/minecn/v37y2024i4d10.1007_s13563-024-00471-w.html
   My bibliography  Save this article

The impact of mining projects on household livelihoods in the Benishangul-Gumuz Region, Ethiopia

Author

Listed:
  • Netsanet Zeleke Haile

    (Ethiopian Civil Service University)

  • Admassu Tesso Huluka

    (Ethiopian Civil Service University)

  • Amsalu Bedemo Beyene

    (Ethiopian Civil Service University)

Abstract

The recent changes in mining policy in Ethiopia have led to a significant increase in mining investments in regions rich in minerals. One such region is the Benishangul Gumuz regional (BGR) state, which has attracted both domestic and foreign investors interested in extracting coal, marble, and gold. However, there is a lack of studies on how mining projects in Ethiopia, particularly in the BGR state, affect the livelihoods of households. This study aims to address this gap by examining the impact of mining projects on household livelihoods in the BGR. To achieve this, we employed quasi-experimental and cross-sectional research designs and collected primary data from 333 households. This included 162 households located near the mining projects (treated households) and 171 households in areas without mining projects (control households). For the analysis, we utilized principal component analysis (PCA) and propensity score matching (PSM) techniques. We used the sustainable livelihood framework (SLF) as the conceptual and analytical tool, focusing on the five livelihood assets as the outcome variable of the study. The results of the Average Treatment Effect on the Treated (ATT) revealed that mining has a significantly positive impact on the financial and physical assets of households. However, it also has a notable negative impact on human, natural, and social capitals, which are crucial for the sustainable development of rural households. Therefore, the research recommends that government institutions and policymakers should address these challenges using a comprehensive approach that balances the benefits of mining with the preservation and enhancement of necessary community assets.

Suggested Citation

  • Netsanet Zeleke Haile & Admassu Tesso Huluka & Amsalu Bedemo Beyene, 2024. "The impact of mining projects on household livelihoods in the Benishangul-Gumuz Region, Ethiopia," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 37(4), pages 925-942, December.
    • Handle: RePEc:spr:minecn:v:37:y:2024:i:4:d:10.1007_s13563-024-00471-w
    DOI: 10.1007/s13563-024-00471-w
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13563-024-00471-w
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s13563-024-00471-w?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Iskandar Zainuddin Rela & Muhammad Zamrun Firihu & Abd Hair Awang & Marsuki Iswandi & Jalaluddin Abdul Malek & Anas Nikoyan & La Nalefo & Hartina Batoa & Salahuddin Salahuddin, 2021. "Formation of Farming Community Resilience Models for Sustainable Agricultural Development at the Mining Neighborhood in Southeast Sulawesi Indonesia," Sustainability, MDPI, vol. 13(2), pages 1-17, January.
    2. Dereje Teklemariam & Hossein Azadi & Jan Nyssen & Mitiku Haile & Frank Witlox, 2016. "How Sustainable Is Transnational Farmland Acquisition in Ethiopia? Lessons Learned from the Benishangul-Gumuz Region," Sustainability, MDPI, vol. 8(3), pages 1-27, February.
    3. Alina Maciejewska & Łukasz Kuzak & Janusz Sobieraj & Dominik Metelski, 2022. "The Impact of Opencast Lignite Mining on Rural Development: A Literature Review and Selected Case Studies Using Desk Research, Panel Data and GIS-Based Analysis," Energies, MDPI, vol. 15(15), pages 1-36, July.
    4. Jinhai Ma & Jie Zhang & Li Li & Zhanjing Zeng & Jingrong Sun & Qilou (Bill) Zhou & Yuling Zhang, 2018. "Study on Livelihood Assets-Based Spatial Differentiation of the Income of Natural Tourism Communities," Sustainability, MDPI, vol. 10(2), pages 1-20, January.
    5. Thomas Moritz & Thomas Ejdemo & Patrik Söderholm & Linda Wårell, 2017. "The local employment impacts of mining: an econometric analysis of job multipliers in northern Sweden," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 30(1), pages 53-65, April.
    6. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    7. Yuguo Lin & Chao He, 2021. "Evaluation of Livelihood Sustainability in the Context of Natural Forest Land Degradation Vulnerability: A Case Study of Five Counties in China," Sustainability, MDPI, vol. 13(12), pages 1-16, June.
    8. Karolina Adach-Pawelus & Anna Gogolewska & Justyna Górniak-Zimroz & Juan Herrera Herbert & Arturo Hidalgo & Barbara Kiełczawa & Joanna Krupa-Kurzynowska & Matti Lampinen & Maria A. Mamelkina & Gabriel, 2020. "Towards Sustainable Mining in the Didactic Process—MEITIM Project as an Opportunity to Increase the Attractiveness of Mining Courses (A Case Study of Poland)," Sustainability, MDPI, vol. 12(23), pages 1-18, December.
    9. Fitsum Semere Weldegiorgis & Evelyn Dietsche & Shabbir Ahmad, 2023. "Inter-Sectoral Economic Linkages in the Mining Industries of Botswana and Tanzania: Analysis Using Partial Hypothetical Extraction Method," Resources, MDPI, vol. 12(7), pages 1-26, June.
    10. Mtero, Farai, 2017. "Rural livelihoods, large-scale mining and agrarian change in Mapela, Limpopo, South Africa," Resources Policy, Elsevier, vol. 53(C), pages 190-200.
    11. Fédes van Rijn & Kees Burger & Eefje den Belder, 2012. "Impact assessment in the Sustainable Livelihood Framework," Development in Practice, Taylor & Francis Journals, vol. 22(7), pages 1019-1035, September.
    12. Mononen, Tuija & Sihvonen, Jukka & Sairinen, Rauno & Tiainen, Heidi, 2023. "Local governance of the mining industry—five Finnish examples," Resources Policy, Elsevier, vol. 82(C).
    13. Iskandar Zainuddin Rela & Abd Hair Awang & Zaimah Ramli & Yani Taufik & Sarmila Md Sum & Mahazan Muhammad, 2020. "Effect of Corporate Social Responsibility on Community Resilience: Empirical Evidence in the Nickel Mining Industry in Southeast Sulawesi, Indonesia," Sustainability, MDPI, vol. 12(4), pages 1-17, February.
    14. Idemudia, Uwafiokun & Tuokuu, Francis Xavier D. & Essah, Marcellinus, 2022. "The extractive industry and human rights in Africa: Lessons from the past and future directions," Resources Policy, Elsevier, vol. 78(C).
    15. Anwar Endris Hassen, 2022. "Competency oriented management for sustainable artisanal and small‐scale mining sector development in Ethiopia," Natural Resources Forum, Blackwell Publishing, vol. 46(1), pages 116-135, February.
    16. Tsegaye Moreda, 2017. "Large-scale land acquisitions, state authority and indigenous local communities: insights from Ethiopia," Third World Quarterly, Taylor & Francis Journals, vol. 38(3), pages 698-716, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tola Gemechu Ango, 2018. "“Medium-Scale” Forestland Grabbing in the Southwestern Highlands of Ethiopia: Impacts on Local Livelihoods and Forest Conservation," Land, MDPI, vol. 7(1), pages 1-20, February.
    2. Muhirwa, Fabien & Shen, Lei & Elshkaki, Ayman & Hirwa, Hubert & Umuziranenge, Gloriose & Velempini, Kgosietsile, 2023. "Linking large extractive industries to sustainable development of rural communities at mining sites in Africa: Challenges and pathways," Resources Policy, Elsevier, vol. 81(C).
    3. Seow Eng Ong & Davin Wang & Calvin Chua, 2023. "Disruptive Innovation and Real Estate Agency: The Disruptee Strikes Back," The Journal of Real Estate Finance and Economics, Springer, vol. 67(2), pages 287-317, August.
    4. Raymundo M. Campos-Vázquez, 2013. "Efectos de los ingresos no reportados en el nivel y tendencia de la pobreza laboral en México," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(2), pages 23-54, November.
    5. Andrea Pufahl & Christoph R. Weiss, 2009. "Evaluating the effects of farm programmes: results from propensity score matching," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 36(1), pages 79-101, March.
    6. Irene Bertschek & Joern Block & Alexander S. Kritikos & Caroline Stiel, 2024. "German financial state aid during Covid-19 pandemic: Higher impact among digitalized self-employed," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 36(1-2), pages 76-97, January.
    7. Febi Jensen & Hans Lööf & Andreas Stephan, 2020. "New ventures in Cleantech: Opportunities, capabilities and innovation outcomes," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 902-917, March.
    8. Jan Fałkowski & Maciej Jakubowski & Paweł Strawiński, 2014. "Returns from income strategies in rural Poland," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 22(1), pages 139-178, January.
    9. Gabrielle Wills, 2016. "Principal leadership changes in South Africa: Investigating their consequences for school performance," Working Papers 01/2016, Stellenbosch University, Department of Economics.
    10. Cabras, Stefano & Fidrmuc, Jan & de Dios Tena Horrillo, Juan, 2017. "Minimum wage and employment: Escaping the parametric straitjacket," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 11, pages 1-20.
    11. Aiello, Francesco & Albanese, Giuseppe & Piselli, Paolo, 2019. "Good value for public money? The case of R&D policy," Journal of Policy Modeling, Elsevier, vol. 41(6), pages 1057-1076.
    12. Nguyen Thi Chau & Tofael Ahamed, 2022. "Analyzing Factors That Affect Rice Production Efficiency and Organic Fertilizer Choices in Vietnam," Sustainability, MDPI, vol. 14(14), pages 1-11, July.
    13. Salvatore Bimonte & Antonella D’Agostino, 2021. "Tourism development and residents’ well-being: Comparing two seaside destinations in Italy," Tourism Economics, , vol. 27(7), pages 1508-1525, November.
    14. Marini, Andrea, 2024. "Updating the retirement-consumption puzzle in Italy: who are the most affected?," Working Paper Series 2936, European Central Bank.
    15. repec:osf:osfxxx:s8ayp_v1 is not listed on IDEAS
    16. Gail Pacheco & Bill Cochrane, 2015. "Decomposing the temporary-permanent wage gap in New Zealand," Working Papers 2015-07, Auckland University of Technology, Department of Economics.
    17. Bi, Gongbing & Lv, Jiancheng, 2023. "Can an early exit mechanism attract more pledges in equity-based crowdfunding? Evidence from China," Finance Research Letters, Elsevier, vol. 56(C).
    18. Asad K. Ghalib & Issam Malki & Katsushi S. Imai, 2012. "Microfinance and its role in household poverty reduction: findings from Pakistan," Global Development Institute Working Paper Series 17312, GDI, The University of Manchester.
    19. Takahashi, Ryo, 2021. "How to stimulate environmentally friendly consumption: Evidence from a nationwide social experiment in Japan to promote eco-friendly coffee," Ecological Economics, Elsevier, vol. 186(C).
    20. Marco Caliendo & Stefan Tübbicke, 2020. "New evidence on long-term effects of start-up subsidies: matching estimates and their robustness," Empirical Economics, Springer, vol. 59(4), pages 1605-1631, October.
    21. Massimiliano BRATTI & Chiara BROCCOLINI & Stefano STAFFOLANI, 2006. "Is '3+2' Equal to 4? University Reform and Student Academic Performance in Italy," Working Papers 251, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:minecn:v:37:y:2024:i:4:d:10.1007_s13563-024-00471-w. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.