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Estimating Returns to Soil and Water Conservation Investments - An Application to Crop Yield in Kenya

Author

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  • Nyangena, Wilfred

    () (School of Economics, University of Nairobi)

  • Köhlin, Gunnar

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

Abstract

Productivity gains from soil and water conservation (SWC) have empirical support in research stations. Previous empirical results from on-farm adoption of SWC are, however, varied. This study investigated the impact of soil conservation investment on farm productivity in three regions in Kenya. Using plot-level survey data, we focused on land productivity on plots with and without SWC. We tested the overall soil conservation hypothesis that increased SWC is beneficial for yield, as well as more specific hypotheses that SWC affects levels of inputs, returns from these inputs, and crop characteristics. The results showed a mixed picture where plots without SWC generally have higher yield values per hectare. However, plots with SWC are significantly steeper and more eroded than plots without SWC. A more careful analysis of a two-stage random effects–switching regression estimation comparing three SWC technologies to plots without SWC indicated that SWC increased the returns from degraded plots and sometimes from other inputs. A simulation exercise based on these estimations also showed that, in most cases, adoption has been beneficial for those who have done it and would be beneficial for those who have not.

Suggested Citation

  • Nyangena, Wilfred & Köhlin, Gunnar, 2009. "Estimating Returns to Soil and Water Conservation Investments - An Application to Crop Yield in Kenya," Working Papers in Economics 402, University of Gothenburg, Department of Economics.
    • Handle: RePEc:hhs:gunwpe:0402
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    File URL: http://hdl.handle.net/2077/21493
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    References listed on IDEAS

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    1. Benjamin, Dwayne, 1995. "Can unobserved land quality explain the inverse productivity relationship?," Journal of Development Economics, Elsevier, vol. 46(1), pages 51-84, February.
    2. Feder, Gershon & Just, Richard E & Zilberman, David, 1985. "Adoption of Agricultural Innovations in Developing Countries: A Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 33(2), pages 255-298, January.
    3. Christopher B. Barrett & Christine M. Moser & Oloro V. McHugh & Joeli Barison, 2004. "Better Technology, Better Plots, or Better Farmers? Identifying Changes in Productivity and Risk among Malagasy Rice Farmers," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(4), pages 869-888.
    4. Byiringiro, Fidele Usabuwera & Reardon, Thomas, 1996. "Farm productivity in Rwanda: effects of farm size, erosion, and soil conservation investments," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 15(2), November.
    5. George E. Battese, 1997. "A Note On The Estimation Of Cobb-Douglas Production Functions When Some Explanatory Variables Have Zero Values," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1-3), pages 250-252.
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    Cited by:

    1. Zhunusova, Eliza & Kyalo Willy, Daniel & Holm-Müller, Karin, 2013. "An Analysis of Returns to Integrated Soil Conservation Practices in the Lake Naivasha Basin, Kenya," 2013 AAAE Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 160676, African Association of Agricultural Economists (AAAE).
    2. Awotide, B.A. & Abdoulaye, Tahirou & Alene, Arega & Manyong, Victor M., 2015. "Impact of Access to Credit on Agricultural Productivity: Evidence from Smallholder Cassava Farmers in Nigeria," 2015 Conference, August 9-14, 2015, Milan, Italy 210969, International Association of Agricultural Economists.

    More about this item

    Keywords

    Kenya; soil conservation; switching regression; rural households; yields;

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services

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