IDEAS home Printed from https://ideas.repec.org/a/gam/jresou/v11y2022i8p71-d875638.html
   My bibliography  Save this article

Eucalyptus Succession on Croplands in the Highlands of Northwestern Ethiopia: Economic Impact Analysis Using Farm Household Model

Author

Listed:
  • Amare Tesfaw

    (Department of Agricultural Economics, College of Agriculture and Natural Resources, Debre Markos University, Debre Markos P.O. Box 269, Ethiopia)

  • Dawit Alemu

    (Stichting Wageningen Research Ethiopia, Wageningen University & Research (WUR), Addis Ababa P.O. Box 88, Ethiopia)

  • Feyera Senbeta

    (Center for Environment and Development Studies, Addis Ababa University, Addis Ababa P.O. Box 1176, Ethiopia)

  • Ermias Teferi

    (Center for Environment and Development Studies, Addis Ababa University, Addis Ababa P.O. Box 1176, Ethiopia)

Abstract

The northwestern highlands of Ethiopia are characterized by severe land degradation and apparently low agricultural productivity. This situation is continuously threatening the livelihoods of smallholder farmers who mainly sustain their living from the cultivation of annual crops. In recent years, however, smallholder farmers have started converting their croplands to plantations of Eucalyptus , a non-native tree species to Africa, for its rewarding economic contributions. In this study, we aggregated data from 388 smallholder Eucalyptus growers located in three agroecology zones (onwards called farm typologies). We measured the economic impact of Eucalyptus succession on croplands using a farm household model which is provided in the GAMS (General Algebraic Modeling System) platform. The results of the model varied between farm typologies and showed that households’ gross margins increased with a corresponding increase in the conversion of croplands. Results also showed that gross margins from plantations of Eucalyptus were higher than that of cultivation of food crops. Furthermore, evaluation of farm portfolios indicated a higher benefit-cost ratio (BCR) for the plantation of Eucalyptus . We concluded that the conversion of croplands in the study area is an incentive-driven process in a dynamic farming system, which strongly demands bringing policy-emanated livelihood alternatives. With this arena, the expansion of Eucalyptus is recommended for lands of terrain features, high marginality and low suitability for the cultivation of food crops and setting aside fertile arable lands. We generalized that an increase in Eucalyptus plantation pays off given the implementation of proper land resource management and the apparent impacts of Eucalyptus on biodiversity and cultural landscape is managed with sustainability perspectives. However, it demands collaborative policy efforts that can especially meet socioeconomic, environmental and public interests.

Suggested Citation

  • Amare Tesfaw & Dawit Alemu & Feyera Senbeta & Ermias Teferi, 2022. "Eucalyptus Succession on Croplands in the Highlands of Northwestern Ethiopia: Economic Impact Analysis Using Farm Household Model," Resources, MDPI, vol. 11(8), pages 1-20, July.
    • Handle: RePEc:gam:jresou:v:11:y:2022:i:8:p:71-:d:875638
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2079-9276/11/8/71/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2079-9276/11/8/71/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Agata Malak-Rawlikowska & Edward Majewski & Adam Wąs & Svein Ole Borgen & Peter Csillag & Michele Donati & Richard Freeman & Viet Hoàng & Jean-Loup Lecoeur & Maria Cecilia Mancini & An Nguyen & Monia , 2019. "Measuring the Economic, Environmental, and Social Sustainability of Short Food Supply Chains," Sustainability, MDPI, vol. 11(15), pages 1-23, July.
    2. Jagger, Pamela & Pender, John, 2003. "The role of trees for sustainable management of less-favored lands: the case of eucalyptus in Ethiopia," Forest Policy and Economics, Elsevier, vol. 5(1), pages 83-95, January.
    3. Osaki, Mauro & Batalha, Mário Otavio, 2014. "Optimization model of agricultural production system in grain farms under risk, in Sorriso, Brazil," Agricultural Systems, Elsevier, vol. 127(C), pages 178-188.
    4. Kai Xiong & Fanbin Kong & Ning Zhang & Ni Lei & Chuanwang Sun, 2018. "Analysis of the Factors Influencing Willingness to Pay and Payout Level for Ecological Environment Improvement of the Ganjiang River Basin," Sustainability, MDPI, vol. 10(7), pages 1-17, June.
    5. Saif Ullah & Rana Shahzad Noor & Ali Abid & Richard K. Mendako & Muhammad Mohsin Waqas & Adnan Noor Shah & Gang Tian, 2021. "Socio-Economic Impacts of Livelihood from Fuelwood and Timber Consumption on the Sustainability of Forest Environment: Evidence from Basho Valley, Baltistan, Pakistan," Agriculture, MDPI, vol. 11(7), pages 1-20, June.
    6. Štefan Bojnec & Kristina Knific, 2021. "Farm Household Income Diversification as a Survival Strategy," Sustainability, MDPI, vol. 13(11), pages 1-16, June.
    7. Belay Simane & Benjamin F. Zaitchik & Mutlu Ozdogan, 2013. "Agroecosystem Analysis of the Choke Mountain Watersheds, Ethiopia," Sustainability, MDPI, vol. 5(2), pages 1-25, February.
    8. Nangware Kajia Msofe & Lianxi Sheng & James Lyimo, 2019. "Land Use Change Trends and Their Driving Forces in the Kilombero Valley Floodplain, Southeastern Tanzania," Sustainability, MDPI, vol. 11(2), pages 1-25, January.
    9. Lindsey Carte & Álvaro Hofflinger & Molly H. Polk, 2021. "Expanding Exotic Forest Plantations and Declining Rural Populations in La Araucanía, Chile," Land, MDPI, vol. 10(3), pages 1-16, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Deolu-Ajayi, Ayodeji O. & Aranguiz, Adolfo Alvarez & Alho, Carlos Francisco Brazão Vieira & Siegmund-Schultze, Marianna & Ndambi, Asaah & Selassie, Yihenew G. & Abebe, Yenesew & Groot, Jeroen C.J. & H, 2023. "Integrated analysis of opportunities and trade-offs for mixed crop-livestock farm types in Amhara, Ethiopia," Agricultural Systems, Elsevier, vol. 208(C).
    2. Yuxuan Xu & Jie Lyu & Ying Xue & Hongbin Liu, 2022. "Does the Agricultural Productive Service Embedded Affect Farmers’ Family Economic Welfare Enhancement? An Empirical Analysis in Black Soil Region in China," Agriculture, MDPI, vol. 12(11), pages 1-22, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Amare Tesfaw & Feyera Senbeta & Dawit Alemu & Ermias Teferi, 2021. "Value Chain Analysis of Eucalyptus Wood Products in the Blue Nile Highlands of Northwestern Ethiopia," Sustainability, MDPI, vol. 13(22), pages 1-25, November.
    2. Amare Tesfaw & Feyera Senbeta & Dawit Alemu & Ermias Teferi, 2022. "Estimating the Economic Values of Restricted Monoculture Eucalyptus Plantations: A Choice Modeling Approach," IJERPH, MDPI, vol. 19(15), pages 1-17, July.
    3. Antonino Galati & Giuseppina Migliore & Alkis Thrassou & Giorgio Schifani & Giuseppina Rizzo & Nino Adamashvili & Maria Crescimanno, 2023. "Consumers’ Willingness to Pay for Agri-Food Products Delivered with Electric Vehicles in the Short Supply Chains," FIIB Business Review, , vol. 12(2), pages 193-207, June.
    4. Quisumbing, Agnes R. & Kumar, Neha, 2014. "Land rights knowledge and conservation in rural Ethiopia: Mind the gender gap," IFPRI discussion papers 1386, International Food Policy Research Institute (IFPRI).
    5. Alexandra Doernberg & Annette Piorr & Ingo Zasada & Dirk Wascher & Ulrich Schmutz, 2022. "Sustainability assessment of short food supply chains (SFSC): developing and testing a rapid assessment tool in one African and three European city regions," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 39(3), pages 885-904, September.
    6. Xin Jiang & Yuyu Liu & Ranhang Zhao, 2019. "A Framework for Ecological Compensation Assessment: A Case Study in the Upper Hun River Basin, Northeast China," Sustainability, MDPI, vol. 11(4), pages 1-13, February.
    7. Chidozie Charles Nnaji & Nkpa Mba Ogarekpe & Ekene Jude Nwankwo, 2022. "Temporal and spatial dynamics of land use and land cover changes in derived savannah hydrological basin of Enugu State, Nigeria," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(7), pages 9598-9622, July.
    8. Gladys Chigamba & Moses Limuwa & Emmanuel Kaunda, 2021. "Does Paying for Aquatic Resources Matter? A Case of an African Riverine Ecosystem," Sustainability, MDPI, vol. 13(8), pages 1-13, April.
    9. L'Roe, Jessica & Naughton-Treves, Lisa, 2017. "Forest edges in western Uganda: From refuge for the poor to zone of investment," Forest Policy and Economics, Elsevier, vol. 84(C), pages 102-111.
    10. Fabíola Sostmeyer Polita & Lívia Madureira, 2021. "Evolution of Short Food Supply Chain Innovation Niches and Its Anchoring to the Socio-Technical Regime: The Case of Direct Selling through Collective Action in North-West Portugal," Sustainability, MDPI, vol. 13(24), pages 1-24, December.
    11. Shihu Zhong & Jie Chen, 2019. "How Environmental Beliefs Affect Consumer Willingness to Pay for the Greenness Premium of Low-Carbon Agricultural Products in China: Theoretical Model and Survey-based Evidence," Sustainability, MDPI, vol. 11(3), pages 1-20, January.
    12. Andrea Lulovicova & Stephane Bouissou, 2023. "Environmental Assessment of Local Food Policies through a Territorial Life Cycle Approach," Sustainability, MDPI, vol. 15(6), pages 1-20, March.
    13. Moreno-Miranda, Carlos & Dries, Liesbeth, 2022. "Integrating coordination mechanisms in the sustainability assessment of agri-food chains: From a structured literature review to a comprehensive framework," Ecological Economics, Elsevier, vol. 192(C).
    14. Alemu Mekonnen & Hosaena Ghebru & Stein T. Holden & Menale Kassie, 2013. "The Impact of Land Certification on Tree Growing on Private Plots of Rural Households: Evidence from Ethiopia," Palgrave Macmillan Books, in: Stein T. Holden & Keijiro Otsuka & Klaus Deininger (ed.), Land Tenure Reform in Asia and Africa, chapter 13, pages 308-330, Palgrave Macmillan.
    15. Jámbor, Attila & Balogh, Jeremiás Máté, 2020. "Az agrárkereskedelem környezeti hatásainak vizsgálata szisztematikus szakirodalmi áttekintés segítségével [Investigating environmental effects of agricultural trade through a systematic review of t," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(9), pages 930-949.
    16. Neema Simon Sumari & Gang Xu & Fanan Ujoh & Prosper Issahaku Korah & Obas John Ebohon & Neema Nicodemus Lyimo, 2019. "A Geospatial Approach to Sustainable Urban Planning: Lessons for Morogoro Municipal Council, Tanzania," Sustainability, MDPI, vol. 11(22), pages 1-14, November.
    17. Biancamaria Torquati & Lucio Cecchini & Chiara Paffarini & Massimo Chiorri, 2021. "The economic and environmental sustainability of extra virgin olive oil supply chains: An analysis based on food miles and value chains," Economia agro-alimentare, FrancoAngeli Editore, vol. 23(1), pages 1-28.
    18. Britta Höllermann & Kristian Näschen & Naswiru Tibanyendela & Julius Kwesiga & Mariele Evers, 2021. "Dynamics of Human–Water Interactions in the Kilombero Valley, Tanzania: Insights from Farmers’ Aspirations and Decisions in an Uncertain Environment," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(4), pages 980-999, August.
    19. Belay Manjur Gebru & Sonam Wangyel Wang & Sea Jin Kim & Woo-Kyun Lee, 2019. "Socio-Ecological Niche and Factors Affecting Agroforestry Practice Adoption in Different Agroecologies of Southern Tigray, Ethiopia," Sustainability, MDPI, vol. 11(13), pages 1-19, July.
    20. Magdalena Raftowicz & Krzysztof Solarz & Agnieszka Dradrach, 2024. "Short Food Supply Chains as a Practical Implication of Sustainable Development Ideas," Sustainability, MDPI, vol. 16(7), pages 1-14, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jresou:v:11:y:2022:i:8:p:71-:d:875638. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.