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Are Agricultural Extension Packages What Ethiopian Farmers Want? A Stated Preference Analysis

Author

Listed:
  • Carlsson, Fredrik

    () (Department of Economics, School of Economics and Commercial Law, Göteborg University)

  • Köhlin, Gunnar

    () (Department of Economics, School of Economics and Commercial Law, Göteborg University)

  • Mekonnen, Alemu

    () (Department of Economics, Addis Ababa University, Ethiopia; and Environmental Economics Policy Forum)

  • Yesuf, Mahmud

    () (Environmental Economics Policy Forum, Ethiopian Development Research Institute, Ethiopia)

Abstract

There is an evident dichotomy in many rural development policies in the world between extension driven adoption of modern inputs and community driven local public goods. However, the target populations of these policies seldom have the possibility to express their preference between these two policies. In this paper we report the results of a stated preference survey in the highlands of Ethiopia where the farmers are given a choice between an agricultural extension package and a local public good - health care or protected spring. The study finds that a majority of people prefers the public good. However, when the extension package is combined with insurance in terms of no payback of the credit in case of crop loss, then we find a significant increase in the choice of the extension package. The study thus sheds light on why Ethiopia’s major development strategy has had limited success and gives evidence of how stated preference methodologies can be utilized for development policy design.

Suggested Citation

  • Carlsson, Fredrik & Köhlin, Gunnar & Mekonnen, Alemu & Yesuf, Mahmud, 2005. "Are Agricultural Extension Packages What Ethiopian Farmers Want? A Stated Preference Analysis," Working Papers in Economics 172, University of Gothenburg, Department of Economics.
  • Handle: RePEc:hhs:gunwpe:0172
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    File URL: http://hdl.handle.net/2077/2747
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    Cited by:

    1. Liverpool-Tasie, Lenis Saweda O. & Omonona, Bolarin T. & Sanou, Awa & Ogunleye, Wale O., 2017. "Is increasing inorganic fertilizer use for maize production in SSA a profitable proposition? Evidence from Nigeria," Food Policy, Elsevier, vol. 67(C), pages 41-51.
    2. Guerzoni, Marco & Jordan, Alexander, 2016. "“Cursed is the ground because of you”: Religion, Ethnicity, and the Adoption of Fertilizers in Rural Ethiopia," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201605, University of Turin.
    3. Dercon, Stefan & Christiaensen, Luc, 2011. "Consumption risk, technology adoption and poverty traps: Evidence from Ethiopia," Journal of Development Economics, Elsevier, vol. 96(2), pages 159-173, November.
    4. Dercon, Stefan & Christiaensen, Luc, 2011. "Consumption risk, technology adoption and poverty traps: Evidence from Ethiopia," Journal of Development Economics, Elsevier, vol. 96(2), pages 159-173, November.

    More about this item

    Keywords

    Agricultural extension; choice experiment; local public goods; Ethiopia; Africa;

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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