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Optimal Expectations and the Welfare Cost of Climate Variability

Uncertainty about the future is an important determinant of well-being, especially in developing countries where financial markets and other market failures result in ineffective insurance mechanisms. However, separating the effects of future uncertainty from realised events, and then measuring the impact of uncertainty on utility, presents a number of empirical challenges.


Environmental resource collection: implications for children's schooling in Tigray, northern Ethiopia

This paper examines the adverse effect of natural resources scarcity on children's schooling and the possible gender bias of resource collection work against girls' schooling. It uses cross-sectional data on 316 children aged 7–18 years collected from 120 rural households in Tigray, northern Ethiopia. The two-stage conditional maximum likelihood estimation technique is employed to take care of endogeneity between schooling and collection intensity decisions.


Fossil Fuel and Food Tax Incidence in Ethiopia

Most studies suggest that environmental taxes are regressive, making them less attractive policy options. The general objective of this paper is to analyze and compare fossil fuel and food tax incidence in Ethiopia in different expenditure groups of households considering urban and rural parts of Ethiopia separately.


Adoption of Multiple Sustainable Agricultural Practices in Rural Ethiopia

The adoption and diffusion of sustainable agricultural practices (SAPs) has become an important issue in the development-policy agenda for sub-Saharan Africa, especially as a way to tackle land degradation, low agricultural productivity and poverty. However, the adoption rates of SAPs remain below expected levels.


Cropping system diversification, conservation tillage and modern seed adoption in Ethiopia: Impacts on household income, agrochemical use and demand for labor

The type and combination of sustainable agricultural practices (SAPs) adopted have a significant effect on agricultural productivity and food security. This study develops a multinomial endogenous switching regression model of farmers' choice of combination of SAPs and impacts on maize income and agrochemicals and family labor use in rural Ethiopia.


Biofuels, Economic Growth, and the External Sector in Ethiopia: A Computable General Equilibrium Analysis

In this study, we assess the economy-wide effects of biofuel investment in Ethiopia, with a focus on the external sector. The Government of Ethiopia has been revising its energy policy to switch from imported fossil oil to domestically produced biofuels, partly in response to climate change and partly in response to rising world oil prices, which leave oil-importing countries such as Ethiopia vulnerable to external oil price shocks.


EfD Ethiopia Center Report 2012/13

This report presents EfD Ethiopia/Environmental Economics Policy Forum for Ethiopia, its members and work during 2012/13. For a free hardcopy, please send an email to:


Does community and household tree planting imply increased use of wood for fuel? Evidence from Ethiopia

As a result of many years of deforestation, fuelwood scarcity is a critical problem in Ethiopia. The Ethiopian government encouraged afforestation and tree growing at both the community and household levels as a policy to stem deforestation and degradation of agricultural lands. The rationale underlying the tree growing strategy is that some significant part of whatever is planted will be used as fuelwood, thereby reducing the demand for wood from native forestlands and use of crop residues and animal dung needed for soil improvement.


Property rights, institutions and choice of fuelwood source in rural Ethiopia

This study examines the relationship between property rights, defined by land tenure security and the strength of local-level institutions, and household's preferences for fuelwood source. A multinomial regression model applied to survey data collected in rural Ethiopia underpins the analysis. Results from the discrete choice model indicate that active local-level institutions increase household dependency on open access forests, while land security reduces open access forest dependence.


Community Controlled Forests, Carbon Sequestration and REDD+ Some Evidence from Ethiopia

REDD+ (Reduced Emissions from Deforestation and Forest Degradation, “plus” afforestration) is a tool that supports forest carbon-enhancing approaches in the developing world in order to mitigate and hopefully reverse climate change. A key issue within REDD+ is to appropriately bring in the almost 25% of developing country forests that are effectively controlled by communities.


The Impact of Food Price Inflation on Subjective Well-being: Evidence From Urban Ethiopia

The world has experienced dramatic food price inflation in recent years, which sparked social unrest and riots in various developing countries. In this paper, we use a novel approach to measure the impact of food price inflation on subjective well-being of urban households in Ethiopia, a country which exhibited one of the highest rates of food price inflation during 2007–2008.


The Distributive Effect and Food Security Implications of Biofuels Investment in Ethiopia: A CGE Analysis

In response to global opportunities and domestic challenges, Ethiopia is revising its energy policy to switch from high-cost imported fossil fuel to domestically produced biofuels. Currently, there are biofuel investment activities in different parts of the country to produce ethanol and biodiesel. However, there is no rigorous empirical study to assess impacts of such investments.


Global Poverty: Definition and Measurement Issues

This series spans the globe presenting leading research in economics. International applications and examples of economic progress are invaluable in a troubled world with economic booms bursting like so many penny balloons.


EfD Ethiopia Center Report 2011/12

This report presents EfD Ethiopia/Environmental Economics Policy Forum for Ethiopia, its members and work during 2011/12. For a free hardcopy, please send an email to:


Magnitude and Pattern of Osteoporotic Fractures among Adults in Tigrai, Ethiopia: A Retrospective Hospital Based

Osteoporotic fractures are devastating public health problems due to significant morbidity, mortality, and the socioeconomic burden. In Ethiopia, the weight of such fractures is often underestimated due to lack of epidemiological data. The objective of this study was to assess the magnitude and pattern of osteoporotic fractures among adults admitted to zonal hospitals in Tigrai, North Ethiopia.


Harnessing Climate Finance for Climate Protection and Sustainable Development in Africa

So far Africa has benefited little from climate finance as compared to other continents with emerging economies. Climate projects are distributed unevenly across regions as well as among developing countries. This is partly due to lack of trained manpower in some of these countries and too restrictive criteria of most of the climate fund projects and programs that are designed to the disadvantage of Africa.


Trust, tenure insecurity, and land certification in rural Ethiopia

This paper assesses the impact of a landcertification program in Ethiopia on the level of interpersonal and institutional trust among households in the Amhara region. The landcertification program is designed to enhance landtenure security of farmers, by maintaining (egalitarian) status quo land distribution and equity concerns.


Clean Fuel Saving Technology Adoption in Urban Ethiopia

The heavy dependence and inefficient utilization of biomass resources have contributed to the depletion of forest resources in Ethiopia, while the use of traditional cooking technology has also been linked to indoor air pollution and poor health. In response, the government and other institutions have pushed for the adoption of new cooking technologies, with limited success.


‘Ripple’ Effects in South African House Prices

This paper analyses the ‘ripple’ effect of house prices in large-, medium- and small-sized houses of five major metropolitan areas of South Africa—namely, Cape Town, Durban Unicity, Greater Johannesburg, Port Elizabeth/Uitenhage and Pretoria—based on available quarterly data covering the period of 1966:Q1 to 2010:Q1.


Climate Conventions and Africa/Ethiopia

Climate change is one of the main problems affecting the global environment which is critical to human welfare. Although the least developed countries (LDCs) in general and Africa in particular contribute the least to the problem, they are the most affected, with reasons varying from lacking resources to cope, immense poverty, and that many LDCs are located in regions where severe weather will hit the most.


The impact of shadow prices and farmers' impatience on the allocation of a multipurpose renewable resource in Ethiopia

In a mixed farming system in which farmyard manure (FYM) is considered an important multipurpose renewable resource that can be used to enhance soil organic matter, provide additional income and supply household energy, soil fertility depletion could take place within the perspective of the household allocation pattern of FYM. This paper estimates a system of FYM allocation regressions to examine the role of returns to FYM and farmers’ impatience on the propensity to allocate FYM to different uses.