Ethiopian Development Research Institute

Addis Ababa, Ethiopia

Ethiopian Development Research Institute

Addis Ababa, Ethiopia
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Teklewold H.,Ethiopian Development Research Institute | Mekonnen A.,Addis Ababa Institute of Technology
Land Use Policy | Year: 2017

Empirical studies point to reduced tillage as a means to increase yields and reverse land degradation. A relatively neglected avenue of research concerns why farmers increase tillage frequencies. Using household-plot level panel data from the Nile Basin of Ethiopia, this article applies a random effects ordered probit endogenous switching regression model to empirically investigate the impact of weather events and other conditioning factors on farmers’ choice of tillage intensity and the effect of changing tillage frequencies on differences in farm returns. Results indicate that, while low frequency tillage is more likely in drier areas, plot-level shocks (such as pests and diseases) are key variables in the choice of high-frequency tillage. Adoption of a low-till approach leads to increasing farm returns in low-moisture areas but high-frequency tillage provides higher returns in high-rainfall areas. Understanding how farmers’ tillage options correlate with climatic conditions and farm economies is salient for developing effective adaptation and mitigation plans. © 2017 Elsevier Ltd

Minten B.,International Food Policy Research Institute | Minten B.,Catholic University of Leuven | Assefa T.,Ethiopian Development Research Institute | Hirvonen K.,International Food Policy Research Institute
World Development | Year: 2017

Traditional food marketing systems in developing countries are often not trusted. In consequence, policy makers frequently try to regulate them and modern marketing arrangements are increasingly emerging to address some of their presumed deficiencies. However, it is unclear how trustworthy these markets actually are. The purpose of this study is to look at these issues in the case of coffee marketing in Ethiopia. Coffee markets in Ethiopia present an interesting case study due to the high price and quality differentiation linked to a number of both easily and not so easily observable characteristics. Moreover, modern marketing practices, such as modern retail, branding and packaging, are becoming increasingly common in Ethiopia's urban coffee markets. When we define and examine trustworthiness in the Addis Ababa coffee market as a function of weights and quality, we find that traditional traders are relatively trustworthy on observable quality characteristics and weights. However, there is a consistent pattern of over-representation of not so easily verifiable quality characteristics. We further find that modern marketing outlets or formats, including modern domestic retail and branded packaged products, deliver higher quality at a higher price, but are not more trustworthy than traditional marketing arrangements in terms of these dimensions of trade transactions. © 2016 Elsevier Ltd

Zhang X.-B.,Renmin University of China | Hassen S.,Ethiopian Development Research Institute
Environment and Development Economics | Year: 2017

Using eight rounds of household survey data that span two decades, this paper analyzes the determinants of household fuel choice in urban China. Using the correlated random effects generalized ordered probit model, the authors find that household fuel choice in urban China is related to fuel prices, households’ economic status and size and household head's gender and education. The results suggest that policies and interventions that increase households’ income, reduce the price advantage of dirty fuels (e.g., taxing coal) and empower women in the household are of great significance in encouraging the use of clean energy sources. Copyright © Cambridge University Press 2017

Hernandez M.A.,International Food Policy Research Institute | Rashid S.,International Food Policy Research Institute | Lemma S.,International Food Policy Research Institute | Kuma T.,Ethiopian Development Research Institute
American Journal of Agricultural Economics | Year: 2017

While the Ethiopian Commodity Exchange (ECX) is widely considered a successful market institution, very little rigorous empirical investigation has been done on it. This paper contributes to filling this knowledge gap. Using a unique set of spatially disaggregated prices for five different coffee varieties, we examine how the ECX has influenced the dynamics of international and domestic prices for coffee, the largest traded commodity in terms of trade value on the exchange floor. We follow a multivariate Generalized Autoregressive Conditional Heteroscedasticity (GARCH) approach to assess the extent of market interdependence (conditional correlations) and volatility transmission. We also evaluate structural changes in price dynamics over time. Our results suggest that, contrary to popular media stories, the ECX's success in strengthening coffee price relationships has been limited. We discuss the underlying reasons and implications of this finding. © The Authors 2017.

Wakeyo M.B.,Wageningen University | Wakeyo M.B.,Ethiopian Development Research Institute | Gardebroek C.,Wageningen University
Journal of Arid Environments | Year: 2015

This study analyses disadoption of water harvesting technologies in Ethiopia where the average disadoption rate in the sample areas is as high as 42%. Given that Ethiopia is a drought-prone country with 95% of its crop production being rain-fed, such a high disadoption rate for irrigation technologies is surprising and urges investigation. Using panel data on 332 Ethiopian farm households collected in 2005 and 2010 we estimate a logit model to identify factors underlying disadoption. We find farm-household, economic, technology-specific, and natural condition variables that relate to disadoption. Mainly, shortage of plastic-sheets, altitude, and distance to market increase disadoption whereas education, experience with water harvesting (learning-by-doing), farm profit, availability of family labour, access to credit, ease of selling output, growing perennial crops, and distance from natural water sources decrease the probability of disadoption. There is no evidence that malaria has a significant effect on disadoption. Based on these findings, improved supply of plastic sheets and motor pumps, and advise to farmers on appropriate crops, credit and improved market accesses could contribute to decreasing disadoption of water harvesting technologies. © 2015 Elsevier Ltd.

Alem Y.,Gothenburg University | Beyene A.D.,Ethiopian Development Research Institute | Kohlin G.,Gothenburg University | Mekonnen A.,Addis Ababa Institute of Technology
Energy Economics | Year: 2016

We use three rounds of a rich panel data set to investigate the determinants of household cooking fuel choice and energy transition in urban Ethiopia. We observe that the expected energy transition did not occur following economic growth in Ethiopia during the decade 2000–2009. Regression results from a random effects multinomial logit model, which controls for unobserved household heterogeneity, show that households' economic status, price of alternative energy sources, and education are important determinants of fuel choice in urban Ethiopia. The results also suggest the use of multiple fuels, or ‘fuel stacking behavior’. We argue that policy makers could target these policy levers to encourage transition to cleaner energy sources. © 2016 Elsevier B.V.

Gebreegziabher Z.,Ethiopian Development Research Institute | Gebreegziabher Z.,Mekelle University | Gebremedhin B.,International Livestock Research Institute | Mekonnen A.,Addis Ababa Institute of Technology
Environment and Development Economics | Year: 2012

Land is an essential factor of production. Institutions that govern its efficient use determine the sustainability of this essential resource. In Ethiopia all land is publicly owned. Such an institutional setting is said to have resulted in the major degradation of Ethiopia's land resources and dissipation of the resource rent. An alternative to this is assigning a private property institution. In this paper, we examine the consumer welfare effects of a change in the institutional setting on communal forest and grazing lands, using a cross-section data set of 200 households in Northern Ethiopia. Findings suggest that changing the current institutional setting could indeed be welfare reducing. © 2011 Cambridge University Press.

Spielman D.J.,International Food Policy Research Institute | Davis K.,International Food Policy Research Institute | Negash M.,Catholic University of Leuven | Ayele G.,Ethiopian Development Research Institute
Agriculture and Human Values | Year: 2011

Ethiopian agriculture is changing as new actors, relationships, and policies influence the ways in which small-scale, resource-poor farmers access and use information and knowledge in their agricultural production decisions. Although these changes suggest new opportunities for smallholders, too little is known about how changes will ultimately improve the wellbeing of smallholders in Ethiopia. Thus, we examine whether these changes are improving the ability of smallholders to innovate and thus improve their own welfare. In doing so, we analyze interactions between smallholders and other actors to provide new perspectives on the role played by smallholder innovation networks in the agricultural sector by drawing on data from community case studies conducted in 10 localities. Findings suggest that public extension and administration exert a strong influence over smallholder networks, potentially crowding out market-based and civil society actors, and thus limiting beneficial innovation processes. From a policy perspective, the findings suggest the need to further explore policies and programs that create more space for market and civil society to participate in smallholder innovation networks and improve welfare. From a conceptual and methodological perspective, our findings suggest the need to incorporate rigorous applications of social network analysis into the application of innovation systems theory. © 2010 Springer Science+Business Media B.V.

Headey D.,International Food Policy Research Institute | Dereje M.,Ethiopian Development Research Institute | Taffesse A.S.,International Food Policy Research Institute
Food Policy | Year: 2014

Highland Ethiopia is one of the most densely populated regions of Africa and has long been associated with both Malthusian disasters and Boserupian agricultural intensification. This paper explores the race between these two countervailing forces, with the goal of inform two important policy questions. First, how do rural Ethiopians adapt to land constraints? And second, do land constraints significantly influence welfare outcomes in rural Ethiopia? To answer these questions we use a recent household survey of high-potential areas. We first show that farm sizes are generally very small in the Ethiopian highlands and declining over time, with young rural households facing particularly severe land constraints. We then ask whether smaller and declining farm sizes are inducing agricultural intensification, and if so, how. We find strong evidence in favor of the Boserupian hypothesis that land-constrained villages typically use significantly more purchased input costs per hectare and more family labor, and achieve higher maize and teff yields and higher gross income per hectare. However, although these higher inputs raise gross revenue, we find no substantial impact of greater land constraints on net farm income per hectare once family labor costs are accounted for. Moreover, farm sizes are strongly positively correlated with net farm income, suggesting that land constraints are an important cause of rural poverty. We conclude with some broad policy implications of our results. © 2014 Elsevier Ltd.

Gebreegziabher Z.,Ethiopian Development Research Institute | Gebreegziabher Z.,Mekelle University | Mekonnen A.,Addis Ababa Institute of Technology | Kassie M.,CIMMYT | Kohlin G.,Gothenburg University
Energy Economics | Year: 2012

Dependency of urban Ethiopian households on rural areas for about 85% of their fuel needs is a significant cause of deforestation and forest degradation, resulting in growing fuel scarcity and higher firewood prices. One response to reducing the pressure on rural lands is for urban households to switch fuel sources, for example, from wood fuel to electricity, to slow deforestation and forest degradation and reduce indoor air pollution. However, such an energy transition is conditioned on the adoption of appropriate cooking appliances or stove technologies by the majority of users. This paper investigates urban energy transition and technology adoption conditions using a dataset of 350 urban households in Tigrai, in northern Ethiopia. Results suggest that the transition to electricity is affected by households adopting the electric mitad cooking appliance, which in turn is influenced by the level of education and income, among other things. © 2011 Elsevier B.V.

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