Farm-level benefits to investments for mitigating land degradation: empirical evidence from Ethiopia

Resource conservation programs have often been launched without careful evaluation of farmers' intertemporal tradeoffs in undertaking conservation investments. Such investments often have long pay back periods and reduce short-term household incomes. The critical question is whether long-term benefi...

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Main Authors: Shiferaw, Bekele, Holden, Stein
Format: Journal Article
Language:Inglés
Published: Cambridge University Press 2001
Subjects:
Online Access:https://hdl.handle.net/10568/155847
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author Shiferaw, Bekele
Holden, Stein
author_browse Holden, Stein
Shiferaw, Bekele
author_facet Shiferaw, Bekele
Holden, Stein
author_sort Shiferaw, Bekele
collection Repository of Agricultural Research Outputs (CGSpace)
description Resource conservation programs have often been launched without careful evaluation of farmers' intertemporal tradeoffs in undertaking conservation investments. Such investments often have long pay back periods and reduce short-term household incomes. The critical question is whether long-term benefits would be sufficient to compensate farmers' immediate costs. Lack of empirical data on crop responses to soil erosion has hindered policy-relevant research. This study uses empirical data from the Ethiopian highlands to estimate the damage from soil erosion and evaluate the profitability of proposed conservation investments. A farm-level model is developed to study economic incentives to implement proposed conservation methods. Results show that incentives to invest in conservation practices are very low except for low cost methods like grass strips. The yield penalty due to area loss and high investment costs contribute to this. Policies focusing on minimizing the area loss effect and subsidizing the initial investment costs are shown to improve farmers' incentives to conserve the soil. A preferred policy option in the short-term is supporting low cost technologies that provide short-term benefits to poor farmers.
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spelling CGSpace1558472024-11-14T11:37:57Z Farm-level benefits to investments for mitigating land degradation: empirical evidence from Ethiopia Shiferaw, Bekele Holden, Stein land degradation smallholders investment Resource conservation programs have often been launched without careful evaluation of farmers' intertemporal tradeoffs in undertaking conservation investments. Such investments often have long pay back periods and reduce short-term household incomes. The critical question is whether long-term benefits would be sufficient to compensate farmers' immediate costs. Lack of empirical data on crop responses to soil erosion has hindered policy-relevant research. This study uses empirical data from the Ethiopian highlands to estimate the damage from soil erosion and evaluate the profitability of proposed conservation investments. A farm-level model is developed to study economic incentives to implement proposed conservation methods. Results show that incentives to invest in conservation practices are very low except for low cost methods like grass strips. The yield penalty due to area loss and high investment costs contribute to this. Policies focusing on minimizing the area loss effect and subsidizing the initial investment costs are shown to improve farmers' incentives to conserve the soil. A preferred policy option in the short-term is supporting low cost technologies that provide short-term benefits to poor farmers. 2001-07 2024-10-24T12:42:41Z 2024-10-24T12:42:41Z Journal Article https://hdl.handle.net/10568/155847 en Limited Access Cambridge University Press Shiferaw, Bekele; Holden, Stein. 2001. Farm-level benefits to investments for mitigating land degradation: empirical evidence from Ethiopia. Environment and Development Economics 6(3): 335-358. https://doi.org/10.1017/S1355770X01000195
spellingShingle land degradation
smallholders
investment
Shiferaw, Bekele
Holden, Stein
Farm-level benefits to investments for mitigating land degradation: empirical evidence from Ethiopia
title Farm-level benefits to investments for mitigating land degradation: empirical evidence from Ethiopia
title_full Farm-level benefits to investments for mitigating land degradation: empirical evidence from Ethiopia
title_fullStr Farm-level benefits to investments for mitigating land degradation: empirical evidence from Ethiopia
title_full_unstemmed Farm-level benefits to investments for mitigating land degradation: empirical evidence from Ethiopia
title_short Farm-level benefits to investments for mitigating land degradation: empirical evidence from Ethiopia
title_sort farm level benefits to investments for mitigating land degradation empirical evidence from ethiopia
topic land degradation
smallholders
investment
url https://hdl.handle.net/10568/155847
work_keys_str_mv AT shiferawbekele farmlevelbenefitstoinvestmentsformitigatinglanddegradationempiricalevidencefromethiopia
AT holdenstein farmlevelbenefitstoinvestmentsformitigatinglanddegradationempiricalevidencefromethiopia