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What Do Farmers Want in the Design of Biofuel Investments in Kenya? A Choice Experiment Approach

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Listed:
  • Ochieng, Isabel Joy
  • Otieno, David
  • Oluoch-Kosura, Willis
  • Jistrom, Magnus

Abstract

Emerging forms of investment such as biofuels have intensified pressure on scarce land especially in developing countries. This has implications on household enterprise choice and food security. However, biofuel investments in Sub-Saharan Africa are often undertaken without adequate stakeholder consultations on priorities and preferences. In order to provide insights for managing potential resource conflicts, this study assessed farmers’ preferences on the design of biofuel investments in Kenya. Choice Experiment was used to elicit survey data from 342 farmers, and random parameter model applied in analysis. Results indicated higher positive preferences for short contract lengths, leasing of a quarter of their land, permanent employment and renewable contracts. Compensating surplus estimates showed that farmers who already practice mixed crop-livestock systems required higher compensation to accept biofuel investments. These findings offer insights on the design of biofuel investments as a potential livelihood diversification option.

Suggested Citation

  • Ochieng, Isabel Joy & Otieno, David & Oluoch-Kosura, Willis & Jistrom, Magnus, 2015. "What Do Farmers Want in the Design of Biofuel Investments in Kenya? A Choice Experiment Approach," 2015 Conference, August 9-14, 2015, Milan, Italy 212589, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae15:212589
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    File URL: http://ageconsearch.umn.edu/record/212589/files/Ochieng-What%20Do%20Farmers%20Want%20in%20the%20Design%20of%20Biofuel%20Investments%20in%20Kenya%20A%20Choice%20Experiment%20Approach-729.pdf
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    References listed on IDEAS

    as
    1. Fewell, Jason E. & Bergtold, Jason S. & Williams, Jeffery R., 2011. "Farmers’ Willingness to Grow Switchgrass as a Cellulosic Bioenergy Crop: A Stated Choice Approach," 2011 Annual Meeting, June 29-July 1, 2011, Banff, Alberta,Canada 109776, Western Agricultural Economics Association.
    2. Hanley, Nick & Mourato, Susana & Wright, Robert E, 2001. " Choice Modelling Approaches: A Superior Alternative for Environmental Valuation?," Journal of Economic Surveys, Wiley Blackwell, vol. 15(3), pages 435-462, July.
    3. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132-132.
    Full references (including those not matched with items on IDEAS)

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    Keywords

    Agricultural and Food Policy; Farm Management;

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