Climate-Smart Agriculture, Non-Farm Employment and Welfare: Exploring Impacts and Options for Scaling Up

Eleni Yitbarek () and Wondimagegn Tesfaye
Additional contact information
Eleni Yitbarek: Department of Economics, University of Pretoria, Pretoria 0002, South Africa
Wondimagegn Tesfaye: World Bank Group, Africa Avenue (Bole Road), Addis Ababa 1000, Ethiopia

Sustainability, 2022, vol. 14, issue 23, 1-22

Abstract: Climate-smart agriculture (CSA) has been receiving increasing attention in recent policy dialogues for its potential to improve agricultural transformation, risk management, and welfare. This study seeks to provide evidence on the welfare impacts of CSA adoption and its complementarity with non-farm employment using household-level data from Ethiopia combined with novel historical weather data. The study uses a multinomial endogenous switching regression model to deal with selection bias and farmer heterogeneity. The results show that households adopting CSA enjoy higher welfare benefits than non-adopter households. Households experience a higher welfare impact (lower monetary and multidimensional poverty rate) when CSA and non-farm employment are adopted simultaneously. However, there is less evidence regarding the complementarity between CSA and non-farm employment when considering per capita consumption expenditure. The study findings will have important policy implications for climate change adaptation, resilience, and poverty reduction in low-income countries.

Keywords: climate-smart agriculture; non-farm employment; welfare; heterogeneous effects; Ethiopia (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2071-1050/14/23/15981/pdf (application/pdf)
https://www.mdpi.com/2071-1050/14/23/15981/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:14:y:2022:i:23:p:15981-:d:988966

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().