Poverty impacts of agricultural water management technologies in Ethiopia

Farmers in rural Ethiopia live in a climate-related shock-prone environment. The major source of climate shock is the persistent variation in the amount and distribution of rainfall. The dependence on unreliable rainfall increases farmers? vulnerability to shocks while also constraining farmers? dec...

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Autores principales: Hagos, Fitsum, Jayasinghe, Gayathree, Awulachew, Seleshi Bekele, Loulseged, Makonnen, Yilma, Aster Denekew
Formato: Conference Paper
Lenguaje:Inglés
Publicado: 2011
Materias:
Acceso en línea:https://hdl.handle.net/10568/41765
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author Hagos, Fitsum
Jayasinghe, Gayathree
Awulachew, Seleshi Bekele
Loulseged, Makonnen
Yilma, Aster Denekew
author_browse Awulachew, Seleshi Bekele
Hagos, Fitsum
Jayasinghe, Gayathree
Loulseged, Makonnen
Yilma, Aster Denekew
author_facet Hagos, Fitsum
Jayasinghe, Gayathree
Awulachew, Seleshi Bekele
Loulseged, Makonnen
Yilma, Aster Denekew
author_sort Hagos, Fitsum
collection Repository of Agricultural Research Outputs (CGSpace)
description Farmers in rural Ethiopia live in a climate-related shock-prone environment. The major source of climate shock is the persistent variation in the amount and distribution of rainfall. The dependence on unreliable rainfall increases farmers? vulnerability to shocks while also constraining farmers? decisions to use yieldenhancing modern inputs, exacerbating the vulnerability of households to poverty and food insecurity. As a response, the Government of Ethiopia has embarked on massive investment in low-cost agricultural water management technologies (AWMTs). Despite these huge investments, their impact remains hardly understood. The main focus of this paper was to explore whether access to selected AWMTs, such as deep and shallow wells, ponds, river diversions and small dams, has led to a significant reduction in poverty and, if they did so, to identify which technologies have higher impacts. The study also calculated the net present value of the selected AWMT, to assess which of the AWMTs are worth investing in given that they have the promise of reducing poverty. In measuring impact we followed different approaches: mean separation tests, propensity score matching and poverty analysis. The study used a unique dataset from a representative sample of 1,517 households from 29 Peasant Associations (Kebeles) in four regions of Ethiopia. Findings indicated that the estimated average treatment effect on per capita income was significant and amounted to USD 82. Moreover, there was 22% less poverty incidence among users of AWMTs compared to nonusers. The poverty impact of AWMT was also found to differ by technology type. Accordingly, deep wells, river diversions and micro-dams have led to 50, 32 and 25%, respectively, reduction in poverty incidence compared to the reference, i.e., rain-fed systems. Although, the selected AWMTs were found to contribute to poverty reduction, we found that ponds, deep wells and small dams were not attractive from a social cost-benefit analysis perspective, implying that choices need to be made considering their relative financial viability and poverty reduction impacts compared to other available options that could improve rain-fed agriculture. Finally, our study identified the most important determinants of poverty, on the basis of which we made policy recommendations: i) build assets (AWMT, livestock, etc.); ii) human resources development; and iii) improve the functioning of labor markets and access to these (input or output) markets for enhanced impact of AWMT on poverty.
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spelling CGSpace417652025-11-07T08:36:33Z Poverty impacts of agricultural water management technologies in Ethiopia Hagos, Fitsum Jayasinghe, Gayathree Awulachew, Seleshi Bekele Loulseged, Makonnen Yilma, Aster Denekew rural poverty analysis investment water management irrigation water rainfed farming technology farmers households income cost benefit analysis water harvesting wells dams ponds Farmers in rural Ethiopia live in a climate-related shock-prone environment. The major source of climate shock is the persistent variation in the amount and distribution of rainfall. The dependence on unreliable rainfall increases farmers? vulnerability to shocks while also constraining farmers? decisions to use yieldenhancing modern inputs, exacerbating the vulnerability of households to poverty and food insecurity. As a response, the Government of Ethiopia has embarked on massive investment in low-cost agricultural water management technologies (AWMTs). Despite these huge investments, their impact remains hardly understood. The main focus of this paper was to explore whether access to selected AWMTs, such as deep and shallow wells, ponds, river diversions and small dams, has led to a significant reduction in poverty and, if they did so, to identify which technologies have higher impacts. The study also calculated the net present value of the selected AWMT, to assess which of the AWMTs are worth investing in given that they have the promise of reducing poverty. In measuring impact we followed different approaches: mean separation tests, propensity score matching and poverty analysis. The study used a unique dataset from a representative sample of 1,517 households from 29 Peasant Associations (Kebeles) in four regions of Ethiopia. Findings indicated that the estimated average treatment effect on per capita income was significant and amounted to USD 82. Moreover, there was 22% less poverty incidence among users of AWMTs compared to nonusers. The poverty impact of AWMT was also found to differ by technology type. Accordingly, deep wells, river diversions and micro-dams have led to 50, 32 and 25%, respectively, reduction in poverty incidence compared to the reference, i.e., rain-fed systems. Although, the selected AWMTs were found to contribute to poverty reduction, we found that ponds, deep wells and small dams were not attractive from a social cost-benefit analysis perspective, implying that choices need to be made considering their relative financial viability and poverty reduction impacts compared to other available options that could improve rain-fed agriculture. Finally, our study identified the most important determinants of poverty, on the basis of which we made policy recommendations: i) build assets (AWMT, livestock, etc.); ii) human resources development; and iii) improve the functioning of labor markets and access to these (input or output) markets for enhanced impact of AWMT on poverty. 2011 2014-07-25T11:40:42Z 2014-07-25T11:40:42Z Conference Paper https://hdl.handle.net/10568/41765 en Open Access application/pdf Hagos, Fitsum; Jayasinghe, Gayathree; Awulachew, Seleshi Bekele; Loulseged, Makonnen; Yilma, Aster Denekew. 2011. Poverty impacts of agricultural water management technologies in Ethiopia. In Awulachew, Seleshi Bekele; Erkossa, Teklu; Balcha, Y. (Comps.). Irrigation and water for sustainable development: proceedings of the Second Forum, Addis Ababa, Ethiopia, 15-16 December 2008. Colombo, Sri Lanka: International Water Management Institute (IWMI). pp.184-212.
spellingShingle rural poverty
analysis
investment
water management
irrigation water
rainfed farming
technology
farmers
households
income
cost benefit analysis
water harvesting
wells
dams
ponds
Hagos, Fitsum
Jayasinghe, Gayathree
Awulachew, Seleshi Bekele
Loulseged, Makonnen
Yilma, Aster Denekew
Poverty impacts of agricultural water management technologies in Ethiopia
title Poverty impacts of agricultural water management technologies in Ethiopia
title_full Poverty impacts of agricultural water management technologies in Ethiopia
title_fullStr Poverty impacts of agricultural water management technologies in Ethiopia
title_full_unstemmed Poverty impacts of agricultural water management technologies in Ethiopia
title_short Poverty impacts of agricultural water management technologies in Ethiopia
title_sort poverty impacts of agricultural water management technologies in ethiopia
topic rural poverty
analysis
investment
water management
irrigation water
rainfed farming
technology
farmers
households
income
cost benefit analysis
water harvesting
wells
dams
ponds
url https://hdl.handle.net/10568/41765
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