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The Contribution of Non-Physical Resources and Strategic Household Decision-making to Environmental and Policy Risks

Author

Listed:
  • Mariam, Yohannes
  • Galaty, John
  • Coffin, Garth

Abstract

Physical resources such as land, labour and livestock, and nonphysical resources such as indigenous knowledge and institutions of producers in the grain surplus and deficit regions of the Central Highlands of Ethiopia are examined under situation of environmental and policy risks. Frequency distribution and comparative statistical analysis of the grain-surplus regions suggest that in situations where all producers are subjected to a common source of risk (e.g. rainfall): I) institutional resources become less effective, and ii) combination of land, labour, knowledge and other complementary resources form the basis for adjustment mechanisms and sequential or strategic decisions. On the other hand, when essential resources such as land are government owned and household decisions are shared by the state, local institutions or social networks become an effective means to maintain reproduction of the farm and producers through providing access to or sharing of resources. In the extreme case of environmental degradation (e.g., drought), farmers follow sequential decision-making. This sequence of decision-making begins with minimization of expenditure, selling of resources that are intended to stabilize farm income, selling of resources essential to farming and depletion of household items, and finally evacuation. The ability of such farming system to regenerate, however, greatly depends not only on the availability of physical resources but most importantly by the potential of knowledge and institutions of producers to adjust to environmental changes, and support from governmental or non-governmental sources.

Suggested Citation

  • Mariam, Yohannes & Galaty, John & Coffin, Garth, 1993. "The Contribution of Non-Physical Resources and Strategic Household Decision-making to Environmental and Policy Risks," MPRA Paper 409, University Library of Munich, Germany, revised 10 Dec 1994.
  • Handle: RePEc:pra:mprapa:409
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    File URL: https://mpra.ub.uni-muenchen.de/409/1/MPRA_paper_409.pdf
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    References listed on IDEAS

    as
    1. 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.
    2. Schultz, Theodore W., 1979. "The Economics of Being Poor," Nobel Prize in Economics documents 1979-1, Nobel Prize Committee.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Paunić, Alida, 2016. "Brazil, Preservation of Forest and Biodiversity," MPRA Paper 71462, University Library of Munich, Germany.

    More about this item

    Keywords

    Resources; indigenous knowledge; institutions; Ethiopia; frequency distribution; statistical analysis; risk; sequential decision-making; environment; government;

    JEL classification:

    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • Z12 - Other Special Topics - - Cultural Economics - - - Religion
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
    • Z1 - Other Special Topics - - Cultural Economics
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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