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Effects of climatic conditions and agro-ecological settings on the productive efficiencies of small-holder farmers in Ethopia

  • Temesgen Tadesse Deressa

This study argues that the adaptation measures farmers take to reduce the negative impacts of climate change do affect farmers’ efficiency of production. To support this argument, two steps were followed to understand how climatic factors especially long term average seasonal rainfall and temperature; and agro-ecological settings affect production efficiency in Ethiopian agriculture. In the first step, the stochastic frontier approach was employed to analyze the farm level technical efficiency. In the second step, the tobit regression model was adopted to analyze how climatic and agro-ecological settings affect efficiency scores derived from the first step. Results from the first step indicated that the surveyed farmers have an average technical efficiency of 0.50; with significant output elasticits of labor, draft power and tractor. Results from the tobit regression model showed that soil types, run-off, seasonal climatic conditions and agro-ecological settings affect technical efficiency in Ethiopian agriculture.

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Paper provided by Economic Research Southern Africa in its series Working Papers with number 223.

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Length: 13 pages
Date of creation: 2011
Date of revision:
Handle: RePEc:rza:wpaper:223
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  1. Maddison, David, 2007. "The perception of and adaptation to climate change in Africa," Policy Research Working Paper Series 4308, The World Bank.
  2. Mendelsohn, Robert & Nordhaus, William D & Shaw, Daigee, 1994. "The Impact of Global Warming on Agriculture: A Ricardian Analysis," American Economic Review, American Economic Association, vol. 84(4), pages 753-71, September.
  3. Tadesse, Bedassa & Krishnamoorthy, S., 1997. "Technical efficiency in paddy farms of Tamil Nadu: An analysis based on farm size and ecological zone," Agricultural Economics, Blackwell, vol. 16(3), pages 185-192, August.
  4. Llewelyn, Richard V. & Williams, Jeffery R., 1996. "Nonparametric analysis of technical, pure technical, and scale efficiencies for food crop production in East Java, Indonesia," Agricultural Economics, Blackwell, vol. 15(2), pages 113-126, November.
  5. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
  6. Temesgen Tadesse Deressa & Rashid M. Hassan, 2009. "Economic Impact of Climate Change on Crop Production in Ethiopia: Evidence from Cross-section Measures," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 18(4), pages 529-554, August.
  7. Yonas Alem & Mintewab Bezabih & Menale Kassie & Precious Zikhali, 2010. "Does fertilizer use respond to rainfall variability? Panel data evidence from Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 41(2), pages 165-175, 03.
  8. Battese, George E. & Corra, Greg S., 1977. "Estimation Of A Production Frontier Model: With Application To The Pastoral Zone Of Eastern Australia," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 21(03), December.
  9. Hassan, Rashid M. & Nhemachena, Charles, 2008. "Determinants of African farmers’ strategies for adapting to climate change: Multinomial choice analysis," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 2(1), March.
  10. Orefi Abu & Johann Kirsten, 2009. "Profit efficiency of small- and medium-scale maize milling enterprises in South Africa," Development Southern Africa, Taylor & Francis Journals, vol. 26(3), pages 353-368.
  11. Jondrow, James & Knox Lovell, C. A. & Materov, Ivan S. & Schmidt, Peter, 1982. "On the estimation of technical inefficiency in the stochastic frontier production function model," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 233-238, August.
  12. Kurukulasuriya, Pradeep & Mendelsohn, Robert, 2008. "Crop switching as a strategy for adapting to climate change," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 2(1), March.
  13. D. L. Neff & P. Garcia & C. H. Nelson, 1993. "Technical Efficiency: A Comparison Of Production Frontier Methods," Journal of Agricultural Economics, Wiley Blackwell, vol. 44(3), pages 479-489.
  14. Mkhabela, Thulasizwe S. & Piesse, Jenifer & Thirtle, Colin G. & Vink, Nick, 2010. "Modelling efficiency with farm-produced inputs: dairying in KwaZulu-Natal, South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 49(1), March.
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