IDEAS home Printed from https://ideas.repec.org/p/hhs/gunefd/2017_010.html
   My bibliography  Save this paper

Determinants of Adoption and Impacts of Sustainable Land Management and Climate Smart Agricultural Practices (SLM-CSA): Panel Data Evidence from the Ethiopian Highlands

Author

Listed:
  • Beyene, Abebe D.
  • Mekonnen, Alemu
  • Kassie, Menale
  • Di Falco, Salvatore
  • Bezabih, Mintewab

Abstract

This paper analyzes the factors affecting adoption of sustainable land management and climate smart agricultural (SLM-CSA) practices (in particular tree planting, soil conservation and intercropping) and the effects of adoption on crop net revenue. We use two rounds of household and parcel level survey data collected from the East Gojjam and South Wollo Zones in the Amhara region of Ethiopia, in combination with spatially explicit climate data (rainfall and temperature). We use a multinomial endogenous switching regression model to understand the impacts of SLM-CSA practices on crop net revenue and we conduct a counterfactual analysis to compare the returns from various adaptation strategies. The results show the importance of household characteristics, physical characteristics of the farm, and climate-related factors in farm households’ decisions to adopt adaptation strategies. We also find that the adoption of SLM-CSA practices, either in isolation or in combination, can result in both positive and negative returns in crop net revenue. Tree planting has the best payoff among the practices considered in this study, either in isolation or in combination. The study also suggests that adoption of all three SLM-CSA practices does not necessarily result in better returns compared to other strategies considered in this study.

Suggested Citation

  • Beyene, Abebe D. & Mekonnen, Alemu & Kassie, Menale & Di Falco, Salvatore & Bezabih, Mintewab, 2017. "Determinants of Adoption and Impacts of Sustainable Land Management and Climate Smart Agricultural Practices (SLM-CSA): Panel Data Evidence from the Ethiopian Highlands," EfD Discussion Paper 17-10, Environment for Development, University of Gothenburg.
    • Handle: RePEc:hhs:gunefd:2017_010
    as

    Download full text from publisher

    File URL: https://www.efdinitiative.org/sites/default/files/publications/efd_dp_17-10.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Salvatore Di Falco & Marcella Veronesi & Mahmud Yesuf, 2011. "Does Adaptation to Climate Change Provide Food Security? A Micro-Perspective from Ethiopia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(3), pages 825-842.
    2. François Bourguignon & Martin Fournier & Marc Gurgand, 2007. "Selection Bias Corrections Based On The Multinomial Logit Model: Monte Carlo Comparisons," Journal of Economic Surveys, Wiley Blackwell, vol. 21(1), pages 174-205, February.
    3. 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 753-771, September.
    4. Olivier Deschênes & Michael Greenstone, 2007. "The Economic Impacts of Climate Change: Evidence from Agricultural Output and Random Fluctuations in Weather," American Economic Review, American Economic Association, vol. 97(1), pages 354-385, March.
    5. Schmidt, Emily & Tadesse, Fanaye, 2014. "Sustainable agriculture in the Blue Nile Basin: land and watershed management practices in Ethiopia," Environment and Development Economics, Cambridge University Press, vol. 19(5), pages 648-667, October.
    6. Tesfamicheal Wossen & Thomas Berger & Salvatore Di Falco, 2015. "Social capital, risk preference and adoption of improved farm land management practices in Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 46(1), pages 81-97, January.
    7. Salvatore Di Falco & Marcella Veronesi, 2013. "How Can African Agriculture Adapt to Climate Change? A Counterfactual Analysis from Ethiopia," Land Economics, University of Wisconsin Press, vol. 89(4), pages 743-766.
    8. Salvatore di Falco & Erwin Bulte, 2011. "A Dark Side of Social Capital? Kinship, Consumption, and Savings," Journal of Development Studies, Taylor & Francis Journals, vol. 47(8), pages 1128-1151, June.
    9. Salvatore Di Falco & Mahmud Yesuf & Gunnar Kohlin & Claudia Ringler, 2012. "Estimating the Impact of Climate Change on Agriculture in Low-Income Countries: Household Level Evidence from the Nile Basin, Ethiopia," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 52(4), pages 457-478, August.
    10. Hailemariam Teklewold & Alemu Mekonnen & Gunnar Kohlin & Salvatore Di Falco, 2017. "Does Adoption Of Multiple Climate-Smart Practices Improve Farmers’ Climate Resilience? Empirical Evidence From The Nile Basin Of Ethiopia," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 8(01), pages 1-30, February.
    11. Jonathan Isham, 2002. "The Effect of Social Capital on Fertiliser Adoption: Evidence from Rural Tanzania," Journal of African Economies, Centre for the Study of African Economies, vol. 11(1), pages 39-60, March.
    12. Teklewold, Hailemariam & Kassie, Menale & Shiferaw, Bekele & Köhlin, Gunnar, 2013. "Cropping system diversification, conservation tillage and modern seed adoption in Ethiopia: Impacts on household income, agrochemical use and demand for labor," Ecological Economics, Elsevier, vol. 93(C), pages 85-93.
    13. Willy, Daniel Kyalo & Holm-Müller, Karin, 2013. "Social influence and collective action effects on farm level soil conservation effort in rural Kenya," Ecological Economics, Elsevier, vol. 90(C), pages 94-103.
    Full references (including those not matched with items on IDEAS)

    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. Hailemariam Teklewold & Alemu Mekonnen & Gunnar Kohlin & Salvatore Di Falco, 2017. "Does Adoption Of Multiple Climate-Smart Practices Improve Farmers’ Climate Resilience? Empirical Evidence From The Nile Basin Of Ethiopia," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 8(01), pages 1-30, February.
    2. Alejandro Lopez-Feldman, 2013. "Climate change, agriculture, and poverty: A household level analysis for rural Mexico," Economics Bulletin, AccessEcon, vol. 33(2), pages 1126-1139.
    3. Martey, Edward & Etwire, Prince Maxwell & Abdoulaye, Tahirou, 2020. "Welfare impacts of climate-smart agriculture in Ghana: Does row planting and drought-tolerant maize varieties matter?," Land Use Policy, Elsevier, vol. 95(C).
    4. Wondimagegn Tesfaye & Garrick Blalock & Nyasha Tirivayi, 2021. "Climate‐Smart Innovations and Rural Poverty in Ethiopia: Exploring Impacts and Pathways," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(3), pages 878-899, May.
    5. Teklewold, Hailemariam & Gebrehiwot, Tagel & Bezabih, Mintewab, 2019. "Climate smart agricultural practices and gender differentiated nutrition outcome: An empirical evidence from Ethiopia," World Development, Elsevier, vol. 122(C), pages 38-53.
    6. Cook, Aaron M. & Ricker-Gilbert, Jacob E. & Sesmero, Juan P., 2013. "How do African households adapt to climate change? Evidence from Malawi," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150507, Agricultural and Applied Economics Association.
    7. Huang, Kaixing & Wang, Jinxia & Huang, Jikun & Findlay, Christopher, 2018. "The potential benefits of agricultural adaptation to warming in China in the long run," Environment and Development Economics, Cambridge University Press, vol. 23(2), pages 139-160, April.
    8. Kaixing Huang, 2015. "The Economic Impacts of Global Warming on Agriculture: the Role of Adaptation," School of Economics and Public Policy Working Papers 2015-20, University of Adelaide, School of Economics and Public Policy.
    9. Jane Kabubo-Mariara & Richard Mulwa, 2019. "Adaptation to climate change and climate variability and its implications for household food security in Kenya," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 11(6), pages 1289-1304, December.
    10. Fissha Asmare & Jūratė Jaraitė & Andrius Kažukauskas, 2022. "Climate change adaptation and productive efficiency of subsistence farming: A bias‐corrected panel data stochastic frontier approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(3), pages 739-760, September.
    11. Pratap S. Birthal & Jaweriah Hazrana & Digvijay S. Negi, 2021. "Effectiveness of Farmers’ Risk Management Strategies in Smallholder Agriculture: Evidence from India," Climatic Change, Springer, vol. 169(3), pages 1-35, December.
    12. Yanyuan Zhang & Xintong Wu, 2023. "Risk Management Effects of Insurance Purchase and Organization Participation: Which Is More Effective?," Agriculture, MDPI, vol. 13(10), pages 1-16, September.
    13. Teklewold, Hailemariam & Mekonnen, Alemu, 2017. "The Tilling of Land in a Changing Climate: Panel Data Evidence from the Nile Basin of Ethiopia," EfD Discussion Paper 17-3, Environment for Development, University of Gothenburg.
    14. Sabrina Auci & Nicolò Barbieri & Manuela Coromaldi & Donatella Vignani, 2021. "Innovation for climate change adaptation and technical efficiency: an empirical analysis in the European agricultural sector," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(2), pages 597-623, July.
    15. Shaikh M. S. U. Eskander & Edward B. Barbier, 2023. "Adaptation to Natural Disasters through the Agricultural Land Rental Market: Evidence from Bangladesh," Land Economics, University of Wisconsin Press, vol. 99(1), pages 141-160.
    16. Pan, Dan & Zhang, Ning & Kong, Fanbin, 2021. "Does it matter who gives information? The impact of information sources on farmers’ pesticide use in China," Journal of Asian Economics, Elsevier, vol. 76(C).
    17. Wang, Di & Zhang, Peng & Chen, Shuai & Zhang, Ning, 2024. "Adaptation to temperature extremes in Chinese agriculture, 1981 to 2010," Journal of Development Economics, Elsevier, vol. 166(C).
    18. Mintewab Bezabih & Salvatore Di Falco & Alemu Mekonnen, 2014. "Is it the climate or the weather? Differential economic impacts of climatic factors in Ethiopia," GRI Working Papers 148, Grantham Research Institute on Climate Change and the Environment.
    19. Mauro Vigani & Jonas Kathage, 2019. "To Risk or Not to Risk? Risk Management and Farm Productivity," American Journal of Agricultural Economics, John Wiley & Sons, vol. 101(5), pages 1432-1454, October.
    20. Mintewab Bezabih & Finn Tarp & Hailemariam Teklewold & Alemu Mekonnen & Tagel G/Hiwot, 2023. "Traditional versus improved varieties of seed: Is there a trade-off between productivity and risk?," DERG working paper series 23-21, University of Copenhagen. Department of Economics. Development Economics Research Group (DERG).

    More about this item

    Keywords

    Sustainable land management; climate smart; adaptation; climate change; endogenous switching; Ethiopia;
    All these keywords.

    JEL classification:

    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

    Statistics

    Access and download statistics

    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:hhs:gunefd:2017_010. 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: Franklin Amuakwa-Mensah (email available below). General contact details of provider: https://www.efdinitiative.org/ .

    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.