Investments in Land Conservation in the Ethiopian Highlands: A Household Plot-Level Analysis of the Roles of Poverty, Tenure Security, and Market Incentives

Land degradation is a major problem undermining land productivity in the highlands of Ethiopia. This study explores the factors that affect farm households’ decisions at the plot level to invest in land conservation and how much to invest, focusing on the roles of poverty, land tenure security, and market access. Unlike most other studies, we used a double-hurdle model in the analysis with panel data collected in a household survey of 6,408 plots in the Amhara region of Ethiopia.

The results suggest that the decisions to adopt land conservation investment and how much to invest appear to be explained by different processes. Poverty-related factors seem to have a mixed effect on both the adoption and intensity decisions. While a farmer’s adoption decision is influenced by whether or not the plot is owner-operated (a measure of risk for the immediate period), intensity of conservation is determined by expectation of the certainty of cultivating the land for the next five years (a measure of risk for the longer term), farmer’s belief of land ownership, and distance from plot to home.

EfD Authors

Assistant Professor Alemu Mekonnen Coordinator and Senior Research Fellow

Keywords

Files

link to pdf 416.5 kB

Centers

ethiopia

Type of publication

EfD Discussion paper

Reference

Genanew Bekele and Alemu Mekonnen (2010), ”Investments in Land Conservation in the Ethiopian Highlands: A Household Plot-Level Analysis of the Roles of Poverty, Tenure Security, and Market Incentives”, EfD Discussion Paper 10-09, Environment for Development Initiative and Resources for the Future, Washington DC, March 2010.

Environment for Development

Environment for Development