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What Do Farmers Want in the Design of Biofuel Investments in Kenya? A Choice Experiment Approach

Isabel Joy Ochieng, David Otieno, Willis Oluoch-Kosura and Magnus Jistrom

No 212589, 2015 Conference, August 9-14, 2015, Milan, Italy from International Association of Agricultural Economists

Abstract: Emerging forms of investment such as biofuels have intensified pressure on scarce land especially in developing countries. This has implications on household enterprise choice and food security. However, biofuel investments in Sub-Saharan Africa are often undertaken without adequate stakeholder consultations on priorities and preferences. In order to provide insights for managing potential resource conflicts, this study assessed farmers’ preferences on the design of biofuel investments in Kenya. Choice Experiment was used to elicit survey data from 342 farmers, and random parameter model applied in analysis. Results indicated higher positive preferences for short contract lengths, leasing of a quarter of their land, permanent employment and renewable contracts. Compensating surplus estimates showed that farmers who already practice mixed crop-livestock systems required higher compensation to accept biofuel investments. These findings offer insights on the design of biofuel investments as a potential livelihood diversification option.

Keywords: Agricultural and Food Policy; Farm Management (search for similar items in EconPapers)
Pages: 32
Date: 2015
New Economics Papers: this item is included in nep-afr, nep-agr, nep-dcm and nep-dev
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae15:212589

DOI: 10.22004/ag.econ.212589

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