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Household Behavior Under Market Failures: How Natural Resource Management in Agriculture Promotes Livestock Production in the Sahel

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  • Dutilly-Diane, Celine
  • Sadoulet, Elisabeth
  • de Janvry, Alain

Abstract

Improved water harvesting and soil erosion control using the remarkably simple practice of contour stone bunding is shown to increase grain yields by 41% in low rainfall regions of Burkina Faso. Empirical results show that yield increases in food crops help foodbuying farm households import substitute in food consumption, reduce livestock production, and increase seasonal migration which is more compatible with seasonal agriculture than with the yearlong livestock activity. Self-sufficient households, by contrast, can take advantage of higher yields to free resources from food production and allocate these to expand their livestock economy, thus benefiting more from the region’s comparative advantage. We also show that greater effectiveness in cooperation in the management of common property resources helps increase income derived from livestock for all categories of households. However, not all forms of cooperation are effective. When cooperation is only formal, individual activities such as crops, non-agricultural employment, and seasonal migration are pursued as opposed to livestock activities that rely on effective community management of common property resources.

Suggested Citation

  • Dutilly-Diane, Celine & Sadoulet, Elisabeth & de Janvry, Alain, 2003. "Household Behavior Under Market Failures: How Natural Resource Management in Agriculture Promotes Livestock Production in the Sahel," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt3cw1v239, Department of Agricultural & Resource Economics, UC Berkeley.
  • Handle: RePEc:cdl:agrebk:qt3cw1v239
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    1. Nigel Key & Elisabeth Sadoulet & Alain De Janvry, 2000. "Transactions Costs and Agricultural Household Supply Response," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 245-259.
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    Cited by:

    1. Tesfaye C. Cholo & Luuk Fleskens & Diana Sietz & Jack Peerlings, 2019. "Land fragmentation, climate change adaptation, and food security in the Gamo Highlands of Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 50(1), pages 39-49, January.
    2. Komarek, Adam M. & Ahmadi-Esfahani, Fredoun Z., 2006. "An Economic Analysis of Ugandan Agricultural Constraints," 2006 Conference (50th), February 8-10, 2006, Sydney, Australia 139796, Australian Agricultural and Resource Economics Society.
    3. Porgo, Mohamed & Kuwornu, John K.M. & Zahonogo, Pam & Jatoe, John Baptist D. & Egyir, Irene S., 2018. "Credit constraints and cropland allocation decisions in rural Burkina Faso," Land Use Policy, Elsevier, vol. 70(C), pages 666-674.
    4. De los Santos-Montero, Luis A. & Bravo-Ureta, Boris E., 2017. "Natural Resource Management and Household Well-being: The Case of POSAF-II in Nicaragua," World Development, Elsevier, vol. 99(C), pages 42-59.
    5. De los Santos-Montero, Luis A. & Bravo-Ureta, Boris E. & von Cramon-Taubadel, Stephan & Hasiner, Eva, 2020. "The performance of natural resource management interventions in agriculture: Evidence from alternative meta-regression analyses," Ecological Economics, Elsevier, vol. 171(C).
    6. De los Santos, Luis Alberto & Bravo-Ureta, Boris Eduardo & Cramon-Taubadel, Stephan, 2017. "Are Natural Resource Management Programs Beneficial? Evidence from the POSAF-II case in Nicaragua," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261282, European Association of Agricultural Economists.
    7. Thomas B. Yaméogo & William M. Fonta & Tobias Wünscher, 2018. "Can Social Capital influence Smallholder Farmers’ Climate-Change Adaptation Decisions? Evidence from Three Semi-Arid Communities in Burkina Faso, West Africa," Social Sciences, MDPI, vol. 7(3), pages 1-20, February.
    8. Mikémina Pilo & Nicolas Gerber & Tobias Wünscher, 2021. "Impacts of Adaptation to Climate Change on Farmers’ Income in the Savanna Region of Togo," Revue économique, Presses de Sciences-Po, vol. 72(3), pages 421-442.
    9. Adeoti, Adetola I., 2008. "Determinants of Households’ Participation in the Collective Maintenance of Publicly Provided Water Infrastructure in Oyo State, Nigeria," Journal of Rural Economics and Development, University of Ibadan, Department of Agricultural Economics, vol. 17, pages 1-12.
    10. McCarthy, Nancy & Dutilly-Diane, Celine & Drabo, Boureima, 2004. "Cooperation, collective action and natural resources management in Burkina Faso," Agricultural Systems, Elsevier, vol. 82(3), pages 233-255, December.
    11. Cocchi, Horacio & Bravo-Ureta, Boris E. & Quiroga, Ricardo E., 2004. "Farm Benefits And Natural Resource Projects In Honduras And El Salvador," 2004 Annual meeting, August 1-4, Denver, CO 20328, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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