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Willingness to pay for Drought Tolerance (DT) in Maize in Communal Areas of Zimbabwe

Author

Listed:
  • Kassie, Girma Tesfahun
  • Abdulai, Awudu
  • MacRobert, John F.
  • Abate, Tsedeke
  • Shiferaw, Bekele
  • Tarekegne, Amsal
  • Maleni, Debrah

Abstract

This study aimed at estimating the implicit prices farmers are willing to pay (WTP) for maize traits with deliberate focus on drought tolerance. Using choice experiment, we generated 12600 observations from a random sample of 1400 households in communal areas within 14 districts of Zimbabwe. Taste parameters and heterogeneities (scale and residual taste) were estimated using the generalized multinomial logit model (G-MNL) and its different versions. Drought tolerance, grain yield, large grain size, covered cob tip, big cob and semi flint texture were the most preferred traits by rural Zimbabweans. The WTP values were estimated using the WTP space approach. Sample farmers are, for example, willing to pay a premium for drought tolerance that is 1.75 times the amount they are willing to pay for an increase of 1 ton in grain yield per acre, 8.3 times the value they attach for a change from small to big cob size, and 14.7 times the willingness to pay for semi-flint texture over dent texture of maize. The uncertainty that DT might not be appealing to poor farmers as much as some other technologies can only be cleared only if the promotion of DT materials is done in the right manner and to the right farm community. Innovative ways of promoting DT maize vis-à-vis creating awareness in contextual understanding of drought and drought risk shall be employed to enhance adoption of new DT maize varieties by risk prone farming communities. Given the high level of rural literacy and the high rate of adoption of improved maize in Zimbabwe, trait based promotion and marketing of varieties would be the right strategy.

Suggested Citation

  • Kassie, Girma Tesfahun & Abdulai, Awudu & MacRobert, John F. & Abate, Tsedeke & Shiferaw, Bekele & Tarekegne, Amsal & Maleni, Debrah, 2014. "Willingness to pay for Drought Tolerance (DT) in Maize in Communal Areas of Zimbabwe," 88th Annual Conference, April 9-11, 2014, AgroParisTech, Paris, France 169747, Agricultural Economics Society.
  • Handle: RePEc:ags:aesc14:169747
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    File URL: http://ageconsearch.umn.edu/record/169747/files/Girma%20Tesfahun_Kassie_WTP4DT%20-%20G%20T%20Kassie%20et%20al%20%20-%20AES%20Submission%20March%202014%20FINAL.pdf
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    References listed on IDEAS

    as
    1. Kassie, Girma Tesfahun & Erenstein, Olaf & Mwangi, Wilfred & La Rovere, Roberto & Setimela, Peter S. & Langyintuo, Augustine S., 2012. "Characterization of Maize Production in Southern Africa: Synthesis of CIMMYT/DTMA Household Level Farming System Surveys in Angola, Malawi, Mozambique, Zambia and Zimbabwe," Socioeconomics Program Working Papers 147108, CIMMYT: International Maize and Wheat Improvement Center.
    2. Blazy, Jean-Marc & Carpentier, Alain & Thomas, Alban, 2011. "The willingness to adopt agro-ecological innovations: Application of choice modelling to Caribbean banana planters," Ecological Economics, Elsevier, vol. 72(C), pages 140-150.
    3. William Greene, 2007. "Discrete Choice Modeling," Working Papers 07-6, New York University, Leonard N. Stern School of Business, Department of Economics.
    4. Smale, Melinda & Byerlee, Derek & Jayne, Thom, 2011. "Maize revolutions in Sub-Saharan Africa," Policy Research Working Paper Series 5659, The World Bank.
    5. Fosgerau, Mogens, 2007. "Using nonparametrics to specify a model to measure the value of travel time," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(9), pages 842-856, November.
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    7. Asrat, Sinafikeh & Yesuf, Mahmud & Carlsson, Fredrik & Wale, Edilegnaw, 2010. "Farmers' preferences for crop variety traits: Lessons for on-farm conservation and technology adoption," Ecological Economics, Elsevier, vol. 69(12), pages 2394-2401, October.
    8. Daniel McFadden & Kenneth Train, 2000. "Mixed MNL models for discrete response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(5), pages 447-470.
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    Cited by:

    1. Diro, Samuel & De Groote, Hugo & Gunarata, Nilupa, 2016. "Effect of nutritional information and sensory quality on the willingness to pay for quality protein maize - results of a field experiment in Jimma zone, Ethiopia," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246979, African Association of Agricultural Economists (AAAE).

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    Keywords

    Agribusiness; Crop Production/Industries; Demand and Price Analysis; International Relations/Trade; Research Methods/ Statistical Methods;

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