We use a dynamic system GMM regression on ve rounds of panel data to estimate the impact of international remittances on consumption of urban Ethiopian households, who spend more than 70% of their consumption budget on food. Results suggest that international remittances play a signi cant role in augmenting household consumption. A 1% increase in remittances from abroad leads to a 0.10% increase in household consumption.
This research investigates the profitability of bioethanol production in Africa, taking Ethiopia as a case in point, and suggests an oil price threshold beyond which biofuels may be profitable. Specifically, the study analyzes the viability of producing bioethanol from molasses in the context of Ethiopia, using data from a biofuels investment survey by EEPFE/EDRI in 2010. The study draw on investment theory as underlying conceptual framework and employ unit cost analysis for the empirical analysis.
Continued high reliance on traditional biomass fuels and stoves in developing countries gives rise to several human health, environmental, and livelihood issues. However solid data on the performance of improved biomass cooking stoves remains scarce. This paper provides controlled cooking test (CCT) evidence on fuel savings from a promising improved biomass cooking stove in Ethiopia. The stove is called Mirt(meaning “best” in Amharic), and is used to bake injera, the staple food in much of Ethiopia. Injera preparation accounts for about half the primary energy consumed in the country.
This study uses a dynamic system GMM regression on five rounds of panel data to estimate the impact of international remittances on consumption of urban Ethiopian households, who spend more than 70% of their consumption budget on food. Results suggest that international remittances play a significant role in augmenting household consumption. A 1% increase in remittances from abroad leads to a 0.10% increase in household consumption.
This study conducted a cross-sectional survey of 8174 micro, small and medium enterprises from ten major urban areas in Ethiopia to study the determinants of the enterprises’ adoption of energy efficiency practices and technologies. For identification, we rely on a generalized ordered probit model. The findings reveal that, as the size of the enterprise becomes larger, it is more likely the enterprise will undertake energy efficient practices and technologies.
Does Intensive Tillage Enhance Productivity and Reduce Risk Exposure? Panel Data Evidence from Smallholders’ Agriculture in Ethiopia
This study analyses the impact of intensity of tillage on wheat productivity and risk exposure using panel household-plot level data from Ethiopia. In order to control for selection bias, it estimates a flexible moment-based production function using an endogenous switching regression treatment effects model. The result shows that tillage has a complementary impact on productivity and risk exposure.
The Country Environmental Analysis (CEA) of Ethiopia is a country-level diagnostic tool to support investment and policy dialogues. It highlights the key environment-related trajectories and challenges facing the country in the coming decade and beyond, and identifies pathways for simultaneously achieving economic, social, and environmental objectives in the context of Ethiopia’s Climate Resilient Green Economy (CRGE) Strategy for 2025, and Second Growth and Transformation Plan (GTP II) for 2016-2020.
Does purchase price matter for the waiting time to start using energy efficient technologies: Experimental evidence from rural Ethiopia?
this study uses a randomized experiment in rural Ethiopia to test on how quickly energy efficient technology (an improved stove) is put in use after the technologies is disseminated. We evaluate two concepts that may affect usage of a product: screening (related to valuation of a product) and sunk cost effects (based on the price the potential user paid for the product). A standard Tobit and IV-Tobit methods of estimations are used for testing sunk cost and screening effects, respectively.
Technological Innovation and Dispersion: Environmental Benefits and the Adoption of Improved Biomass Cookstoves in Tigrai, Northern Ethiopia
This paper empirically analyzes adoption and fuel savings efficiency of improved biomass cookstove technology using survey data from a cross-section of 200 farm households from the highlands of Tigrai, northern Ethiopia. Results indicate that these farm households are willing to adopt improved biomass cookstove innovations if this leads to economic savings. Moreover, results suggest significant positive environmental externalities. On a per household basis, we found that adopters collect about 70 kg less wood and about 20 kg less dung each month.
Determinants of Adoption and Impacts of Sustainable Land Management and Climate Smart Agricultural Practices (SLM-CSA)
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 inter cropping)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).
Determinants of Adoption and Impacts of Sustainable Land Management and Climate Smart Agricultural Practices (SLM-CSA): Panel Data Evidence from the Ethiopian Highlands
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).
The Impact of Credit Constraints and Climatic Factors on Choice of Adaptation Strategies: Evidence from Rural Ethiopia
Climate adaptation actions, like any other investment, require financial resources, which are likely to be in short supply in the rural sector in developing countries. This paper assesses the role of credit constraints in the choice of adaptation strategies in settings with severe financial market imperfections. Household-level panel data from selected zones in the highland region of Ethiopia, combined with climate information from the adjacent meteorological stations, is employed in the analysis.
Using household-plot level panel data from the Nile Basin of Ethiopia, this article applies a random effects ordered probit endogenous switching regression model to empirically investigate the impact of weather events and other conditioning factors on farmers’ choice of tillage intensity and the effect of changing tillage frequencies on differences in farm returns. Results indicate that, while low frequency tillage is more likely in drier areas, plot-level shocks (such as pests and diseases) are key variables in the choice of high-frequency tillage.
Do safety net transfers improve household diets and reduce under nutrition? Evidence from rural Ethiopia
The paper examines the impact of the Ethiopia’s Productive Safety Net Program on household dietary diversity and child nutrition using both waves of the Ethiopian Socio-economic Survey. Key messages • The Productive Safety Net Program is not found to have any impact on dietary diversity or child nutrition, however, it does help reduce household food insecurity. • A nutrition-sensitive social protection program should be implemented. • To improve child nutrition, social benefits can be made conditional on parents’ participation in nutrition education programs.
Individuals’ risk preferences may change after experiencing external socio-economic or natural shocks. Theoretical predictions and empirical studies suggest that risk taking may increase or decrease after experiencing shocks. So far the empirical evidence is sparse, especially when it comes to developed countries. We contribute to this literature by investigating whether experiencing financial and health-related damage caused by storms affects risk preferences of individuals in Germany.
We investigate the role of an indigenous social network in Ethiopia, the iddir, in facilitating factor market transactions among smallholder farmers. We use detailed longitudinal household survey data and employ fixed effects estimation approaches to identify the effect of iddir membership on factor market transactions among farmers. We find that joining an iddir network improves households’ access to land, labour and credit transactions.
We estimate the production function for agricultural output in Eastern Africa incorporating climate variables disaggregated into growing and non-growing seasons. We find a substantial negative effect of within growing season variance of precipitation. We simulate predicted climate change for the region and find a resulting output reduction of between 1.2% and 4.5%.
Pay-What-You-Want (PWYW) pricing schemes are becoming increasingly popular. We develop a model incorporating self-image into the buyer’s utility function and introduce heterogeneity in consumption utility and image-sensitivity, generating different purchase decisions and optimal prices across individuals. When a good’s fixed price is lower than a threshold fair value, PWYW can lead to a lower utility. This may result in a lower purchase rate and higher average price, accounting for previously unexplained field experimental evidence.
In this paper, we propose a reputation-signalling model of demand for consumer goods containing pro-social characteristics such as a ‘fair trade’ or ‘organic’ certification. We show that reputation signalling can reverse price reactions resembling the crowding-out of pre-existing motives for pro-social behavior seen in situations of volunteering and charitable giving. Finally, using a unique combination of questionnaire and purchase panel data, we present evidence of such reputation-driven reversal of price reactions in the Danish market for organic milk.
Empirical studies point to reduced tillage as a means to increase yields and reverse land degradation. A relatively neglected avenue of research concerns why farmers increase tillage frequencies. Using household plot–level panel data from the Nile Basin of Ethiopia, this article applies a random effects ordered probit endogenous switching regression model to empirically investigate the impact of weather events and other conditioning factors on farmers’ choice of tillage intensity and the effect of changing tillage frequencies on differences in farm returns.
Strong property rights have long been touted as key to increased performance of the rural economy in developing countries. Indeed, in an overwhelmingly agrarian economy like Ethiopia, with state ownership of land, increased land tenure security of individual farmers is expected to play a significant role in factor allocation within and beyond the agricultural sector. This paper analyses the impact of a land certification program on farmers’ off-farm participation, based on household-level panel data collected in the Amhara Region of Ethiopia.
This paper investigates the spatial and temporal aspect of seasonal agricultural drought in Ethiopia during the cropping season using Vegetation Condition Index. SPOT-VGT S10 NDVI time-series for the period 1998 to 2013 was employed. Five hundred and sixty-seven dekadal images were administered in order to produce the multi-temporal agricultural drought maps. Accordingly, the analysis showed different causes for the nation-wide drought events occurred in the years 1998, 2000, 2002, 2009, and 2010.
Reducing poverty and improving household food security remains an important policy objective for rural development in the semi-arid areas of many countries in Africa. Many development programs have been introduced in efforts to bring the cycle of poverty and food insecurity to an end. This paper investigates the impact of a food security package (FSP) program in improving rural household’s food consumption in Tigray region, Northern Ethiopia.
The Effect of Enclosures in Rehabilitating Degraded Vegetation: A Case of Enderta District, Northern Ethiopia
Ethiopia is one of the African countries facing problems of environmental degradation. In particular, the problem is severe in the Tigray region of Northern Ethiopia highlands where, environmental degradation is threatening many parts of the region. Efforts to contain this problem and facilitate natural rehabilitation have been made at several levels. The establishment of area enclosures, and soil and water conservation works are two of the main strategies promoted to contain land degradation and restore the natural vegetation.
In semi-arid highlands of northern Ethiopia, episodes of droughts of varying severity and duration occur. The occurrence of these droughts is associated mainly with the seasonal rainfall variability. This study attempts to investigate the temporal and spatial variability of climate parameters, particularly rainfall and temperature for the period 1954-2008. Standardized rainfall anomaly was used to examine the temporal characteristics of climate variability and determine the prevalence of droughts.
This article examines the main household demographics and economic factors associated with food insecurity and coping behavior of rural households employed during times of food shortages in northern Ethiopia. Using a cost-of-basic-needs approach we estimated the food poverty line. This cut-off value was used to classify households as either food secure or insecure.
Climate change and variability severely affect rural livelihoods and agricultural productivity, yet they are causes of stress vulnerable rural households have to cope with. This paper investigated farming communities’ vulnerability to climate change and climate variability across 34 agricultural-based districts in Tigray, northern Ethiopia. It considered 24 biophysical and socio-economic indicators to reflect the three components of climate change vulnerability: exposure, sensitivity and adaptive capacity.
Farmers Prone to Drought Risk: Why Some Farmers Undertake Farm-Level Risk-Reduction Measures While Others Not
This research investigates farmers’ cognitive perceptions of risk and the behavioral intentions to undertake farm-level risk-reduction measures. It has been observed that people who are susceptible to natural hazards often fail to act, or do very little, to protect their assets or lives.
In Ethiopia, climate change and associated risks are expected to have serious consequences for agriculture and food security. This in turn will seriously impact on the welfare of the people, particularly the rural farmers whose main livelihood depends on rain-fed agriculture. The level of impacts will mainly depend on the awareness and the level of adaptation in response to the changing climate.
With the development of global changes, researchers from all over the world increasingly pay attention to drought detection, and severe droughts that may have resulted from climate change. In this paper, spatial and temporal variability of drought is evaluated based on precipitation data and remotely sensed images. The standard precipitation index (SPI) and vegetation condition index (VCI) are used to evaluate the spatial and temporal characteristics of meteorological and vegetative drought in Tigray, Northern Ethiopia.
This study attempts to investigate the effectiveness of government policy interventions at different scales addressed to improve food security. Food security both at the regional and district level was investigated by deriving food balance sheets for the period 2000-2008. An empirical analysis based on a logit model was also employed to analyze household level food security status.
Does Adoption of multiple climate-smart practices improve farmers’ climate resilience? Empirical evidence from the Nile basin of Ethiopia
There is a paucity of information on conditioning factors that hinder or promote adoption of multiple climate-smart practices and on the synergies among such practices in increasing household resilience by improving agricultural income. This study analyzes how heat, rainfall, and rainfall variability affect farmers’ choices of a portfolio of potential climate smart practices — agricultural water management, improved crop seeds, and fertilizer — and the impact of these practices on farm income in the Nile Basin of Ethiopia.
This article investigates the impact of an institutional intervention on market efficiency in Ethiopia. More specifically, it analyzes to what extent the Ethiopian Commodity Exchange (ECX) in combination with regional warehouses have contributed to a reduction in price spreads between regional markets. The hypothesis is that warehouses connected to the ECX reduce the dispersion between export prices and local retail prices in different coffee growing areas, as well as the dispersion between export prices and local retail prices in different coffee growing areas.
This is a chapter in a book entitled “Bioenergies in East Africa between challenges and opportunities” Edited by Marco Setti, Daria Zizzola 2016.
This is a chapter in a book entitled “Bioenergies in East Africa between challenges and opportunities” Edited by Marco Setti, Daria Zizzola, 2016.
This paper uses three rounds of a rich panel data set to investigate the determinants of household cooking fuel choice and energy transition in urban Ethiopia. It is observed that the expected energy transition did not occur following economic growth in Ethiopia during the decade 2000–2009.
Single versus Multiple Objective(s) Decision Making: An Application to Subsistence Farms in Northern Ethiopia
Single objective approach is most widely used whereas consideration of multiple objectives is the rule rather than an exception in many real life decision-making circumstances. This paper, therefore, investigates whether or not single and multiple criteria/objective approaches necessarily lead to differing conclusions. The central questions are could the single objective approach be a reasonable approximation for subsistence farm settings or does the multiple objectives approach has anything to add?
Risk aversion has generally been found to decrease in income. This may lead one to expect that people in poor countries will be more risk averse than inhabitants of rich countries. Recent comparative findings with students suggest the opposite, potentially giving rise to a risk-income paradox. Findings with students, however, may result from selection effects. We test whether a paradox indeed exists by measuring the risk preferences of over 500 household heads across several regions in the highlands of Ethiopia.
This paper tests the effect of stake size on ambiguity attitudes. Compared to a baseline condition, the paper find subjects to be more ambiguity seeking for small probability gains and large-probability losses under high stakes. They are also more ambiguity averse for large-probability gains and small-probability losses. the study traces these effects back to stake effects on decisions under risk (known probabilities) and uncertainty (unknown probabilities). For risk the paper replicates previous findings.
Does Adoption of Multiple Climate-Smart Practices Improve Farmers’ Climate Resilience? Empirical Evidence from the Nile Basin of Ethiopia
There is a paucity of information on the conditions under which multiple climate-smart practices are adopted and on the synergies among such practices in increasing household resilience by improving agricultural income. This study analyzes how heat, rainfall, and rainfall variability affect farmers’ choices of a portfolio of potential climate-smart practices – agricultural water management, improved crop seeds and fertilizer – and the impact of these practices on farm income in the Nile Basin of Ethiopia.
Mapping Vulnerability to Climate Change of the Farming Sector in the Nile Basin of Ethiopia A Micro-level Perspective
This paper analyzes vulnerability to climate change of the farming sector in the Nile Basin of Ethiopia across different agro-ecological zones. We construct composite vulnerability indices, which integrate both the bio-physical conditions of the farming regions and the socio-economic conditions of the farm households to investigate overall vulnerability as well as adaptive capacity, exposure and sensitivity.
Most hydrological studies do not account for the socio-economic influences on eco-hydrological processes. However, socio-economic developments often change the water balance substantially and are highly relevant in understanding changes in hydrological responses. In this study a multi-disciplinary approach was used to study the cascading impacts of socio-economic drivers of land use and land cover (LULC) changes on the eco-hydrological regime of the Lake Naivasha Basin. The basin has recently experienced substantial LULC changes exacerbated by socio-economic drivers.
The Effects of Groundwater and Surface Water Use on Total Water Availability and Implications for Water Management: The Case of Lake Naivasha, Kenya
This study discusses the effects of water abstractions from two alternative sources on the available water volume around Lake Naivasha, Kenya: the lake itself and a connected aquifer. An estimation of the water abstraction pattern for the period 1999–2010 is made and its effect on the available water volume in Lake Naivasha and its connected aquifer is evaluated using a simple water balance modeling approach.
Accounting for spatial non-stationarity to estimate population distribution using land use/cover. Case Study: the Lake Naivasha basin, Kenya
Remotely-sensed data can be used to overcome deficiencies in data availability in poorly monitored regions. Reliable estimates of human population densities at different spatial levels are often lacking in developing countries. This study explores the applicability of a geographically-weighted regression (GWR) model for estimating population densities in rural Africa using land use/cover data that have been derived from remote-sensing while accounting for spatial non-stationarity.
This study describes the mismatch between required knowledge and efforts by scientists and stakeholders in the Lake Naivasha basin, Kenya. In the basin, integrated water resources management (IWRM) suffers from the absence of critically relevant knowledge. This study further presents a spatial integrated assessment framework for supporting IWRM in the basin. This framework resulted from an ongoing debate between stakeholders and scientists studying the basin's issues. It builds on jointly identified indicators for sustainable governance, and their interdependency, and knowledge gaps.
Farm households' preferences for collective and individual actions to improve water-related ecosystem services: The Lake Naivasha basin, Kenya
Interventions in payment for ecosystem services (PES) programs can involve both collective and individual actions. This study explores the potential for the development of payment for water related ecosystem services (PWES) program in the Lake Naivasha basin, Kenya. Using a choice experiment approach, the willingness to accept compensation is estimated for three water-related ecosystem services (WES) attributes: one collective attribute (reforestation) and two individual attributes (environment-friendly agricultural practices and restoration of riparian land).
Firms’ willingness to invest in a water fund to improve water-related ecosystem services in the Lake Naivasha basin, Kenya
A valuation scenario was designed using a contingent-valuation approach and presented to decision makers in business firms in Kenya’s Lake Naivasha basin to test how applicable a water fund might be as a potential financing mechanism for a payment for water-related ecosystem services scheme. The findings indicate that measuring a firm’s willingness to invest in ecosystem services could help determine whether a firm would invest and engage with other stakeholders to pool their investments in ecosystem services.
Read about EfD research applied around the developing world during 2017. Take a look at each EfD Center's Stories!
We investigate the effect of remittances from migrated family members on informal inter-household transfers, an issue that has received limited attention in the literature. Using rich panel data from urban Ethiopia, we show that receiving international remittances increases the value of private domestic inter-household transfers, whereas receiving domestic remittances does not have any e ect.
Even when communities do a good job of managing forests, additional incentives are needed to encourage them to store more carbon: A Study in Ethiopia
The United Nations Programme to Reduce Emissions from Deforestation and Degradation (REDD+) is a plan to mitigate climate change by making payments to developing countries that conserve forests. However, it is not yet clear whether it makes sense to bring in the approximately 25% of developing country forests that are managed by communities. We attempt to shed light on this question by examining whether forest collective action – cooperation to improve forests – is already sequestering carbon.