The Role of Production Risk in Sustainable Land-Management Technology Adoption in the Ethiopian Highlands

Menale Kassie, Mahmud Yesuf and Köhlin, Gunnar
Authors registered in the RePEc Author Service: Gunnar Köhlin

RFF Working Paper Series from Resources for the Future

Abstract: This paper provides empirical evidence of production risk impact on sustainable land- management technology adoption, using two years of cross-sectional plot-level data collected in the Ethiopian highlands. We used a moment-based approach, which allowed a flexible representation of the production risk (Antle 1983, 1987). Mundlak’s approach was used to capture the unobserved heterogeneity along with other regressors in the estimation of fertilizer and conservation adoption. The empirical results revealed that impact of production risk varied by technology type. Production risks (variance and crop failure as measured by second and third central moments, respectively) had significant impact on fertilizer adoption and extent of adoption. However, this impact was not observed in adoption of conservation technology. On the other hand, expected return (as measured by the first central moment) had a positive significant impact on both fertilizer (adoption and intensity) and conservation adoption. Economic instruments that hedge against risk exposure, including downside risk and increase productivity, are important to promote adoption of improved technology and reduce poverty in Ethiopia.

Keywords: Production risk; sustainable land management technology adoption; moment based estimation; Ethiopia (search for similar items in EconPapers)
JEL-codes: C33 D13 D81 O33 Q24 (search for similar items in EconPapers)
Date: 2008-04-03
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.rff.org/RFF/documents/EfD-DP-08-15.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.rff.org/RFF/documents/EfD-DP-08-15.pdf [301 Moved Permanently]--> https://www.rff.org/RFF/documents/EfD-DP-08-15.pdf)

Related works:
Working Paper: The Role of Production Risk in Sustainable Land-Management Technology Adoption in the Ethiopian Highlands (2009)
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:rff:dpaper:dp-08-15-efd

Access Statistics for this paper

More papers in RFF Working Paper Series from Resources for the Future Contact information at EDIRC.
Bibliographic data for series maintained by Resources for the Future ().