Estimating the economic value of climate services for strengthening resilience of smallholder farmers to climate risks in Ethiopia: A choice experiment approach

This study estimated the economic value of agricultural climate services for strengthening the resilience of smallholder farmers to climate variability and risks in Ethiopia. Using a choice experiment approach, the study introduced a hypothetical package of improved climate services to 600 randomly...

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Main Authors: Tesfaye, Abonesh, Hansen, James, Kassie, Girma T., Radeny, Maren A.O., Solomon, Dawit
Format: Journal Article
Language:Inglés
Published: Elsevier 2019
Subjects:
Online Access:https://hdl.handle.net/10568/101431
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author Tesfaye, Abonesh
Hansen, James
Kassie, Girma T.
Radeny, Maren A.O.
Solomon, Dawit
author_browse Hansen, James
Kassie, Girma T.
Radeny, Maren A.O.
Solomon, Dawit
Tesfaye, Abonesh
author_facet Tesfaye, Abonesh
Hansen, James
Kassie, Girma T.
Radeny, Maren A.O.
Solomon, Dawit
author_sort Tesfaye, Abonesh
collection Repository of Agricultural Research Outputs (CGSpace)
description This study estimated the economic value of agricultural climate services for strengthening the resilience of smallholder farmers to climate variability and risks in Ethiopia. Using a choice experiment approach, the study introduced a hypothetical package of improved climate services to 600 randomly selected smallholder farmers in three districts across three different agro-ecological zones in the Oromia Regional State. A generalized multinomial logit (G-MNL) model was used to estimate preferred attributes of climate services and willingness-to-pay (WTP) values. The results show that the preferred bundle of improved climate services among smallholder farmers was one that could be communicated in short text message system, provided along with credit facility, and market information and one that favors participatory decision making by smallholders. The results further reveal that the WTP value exhibited high implicit price for participatory decision-making. The study sheds light on important characteristics of agricultural climate services that may improve their acceptability and usability among smallholders. It also highlights the importance of packaging additional services including digital and ICT-based solutions, financial and market information along with climate services to promote demand-driven last mile delivery systems. Engaging smallholder farmers in a participatory manner in the decision-making process can help them make informed decision.
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publishDate 2019
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spelling CGSpace1014312025-02-19T13:42:25Z Estimating the economic value of climate services for strengthening resilience of smallholder farmers to climate risks in Ethiopia: A choice experiment approach Tesfaye, Abonesh Hansen, James Kassie, Girma T. Radeny, Maren A.O. Solomon, Dawit climate change agriculture food security economic value resilience This study estimated the economic value of agricultural climate services for strengthening the resilience of smallholder farmers to climate variability and risks in Ethiopia. Using a choice experiment approach, the study introduced a hypothetical package of improved climate services to 600 randomly selected smallholder farmers in three districts across three different agro-ecological zones in the Oromia Regional State. A generalized multinomial logit (G-MNL) model was used to estimate preferred attributes of climate services and willingness-to-pay (WTP) values. The results show that the preferred bundle of improved climate services among smallholder farmers was one that could be communicated in short text message system, provided along with credit facility, and market information and one that favors participatory decision making by smallholders. The results further reveal that the WTP value exhibited high implicit price for participatory decision-making. The study sheds light on important characteristics of agricultural climate services that may improve their acceptability and usability among smallholders. It also highlights the importance of packaging additional services including digital and ICT-based solutions, financial and market information along with climate services to promote demand-driven last mile delivery systems. Engaging smallholder farmers in a participatory manner in the decision-making process can help them make informed decision. 2019-08 2019-05-29T19:58:13Z 2019-05-29T19:58:13Z Journal Article https://hdl.handle.net/10568/101431 en Limited Access Elsevier Tesfaye A, Hansen J, Kassie GT, Radeny M, Solomon D. 2019. Estimating the economic value of climate services for strengthening resilience of smallholder farmers to climate risks in Ethiopia: A choice experiment approach. Ecological Economics 162:157-168.
spellingShingle climate change
agriculture
food security
economic value
resilience
Tesfaye, Abonesh
Hansen, James
Kassie, Girma T.
Radeny, Maren A.O.
Solomon, Dawit
Estimating the economic value of climate services for strengthening resilience of smallholder farmers to climate risks in Ethiopia: A choice experiment approach
title Estimating the economic value of climate services for strengthening resilience of smallholder farmers to climate risks in Ethiopia: A choice experiment approach
title_full Estimating the economic value of climate services for strengthening resilience of smallholder farmers to climate risks in Ethiopia: A choice experiment approach
title_fullStr Estimating the economic value of climate services for strengthening resilience of smallholder farmers to climate risks in Ethiopia: A choice experiment approach
title_full_unstemmed Estimating the economic value of climate services for strengthening resilience of smallholder farmers to climate risks in Ethiopia: A choice experiment approach
title_short Estimating the economic value of climate services for strengthening resilience of smallholder farmers to climate risks in Ethiopia: A choice experiment approach
title_sort estimating the economic value of climate services for strengthening resilience of smallholder farmers to climate risks in ethiopia a choice experiment approach
topic climate change
agriculture
food security
economic value
resilience
url https://hdl.handle.net/10568/101431
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