Sources of Risk and Impact of Climate Change Adaptation Strategy on Crop Production: The Case of Swc in Wolaita, Southern Highlands of Ethiopia Evidence from Panel Data

Course ID
Ethiopian Economics Association (EEA)
Kalkidan Assefa

Climate change is the most important risk affecting agricultural productivity in Ethiopia. Farmers have adapted different copping and/or adaptation strategies to climate change. In line with this, using three period panel data for 2005, 2007 and 2011 years from survey of 204 farm households in Wolaita, SNNPRS, this study presents the sources of risks,adaptation strategies used by farmers, factors influencing the decision to adapt and analyze the impact of adaptation on farmers production using Endogenous Switching Regression Models. About 79 % of the farmers perceived there was climate change in terms of rainfall shortage and increase in temperature in the last six years compared to the previous times. In response farmers have undertaken adaptation strategies such as Soil and Water Conservation, crop diversification, fertilizer application, improved variety usage, and changing planting dates. Both household and plot level Fixed Effect Switching Regression model was used to see factors affecting the choice of SWC adaptation, the impact of SWC adoption on crop production and observe the temporal and cross sectional variability between SWC adopters and non adopter groups. According to the result of the first stage model, labour in man days, household size, extension contact on SWC, livestock holding in TLU, plot slope being mid hill have positive and significant impact on choice of SWC adaptation to climate change. Variables such as education level, farming experience, average annual rainfall, plot ownership, soil type being dark brown, plot slope being steep, erosion susceptibility, and no soil degradation have negative and statistically significant impact on SWC adoption decision. The result of the second stage model indicates there is positive and statistically significant difference in terms of production in value terms between SWC adopters and non adopters. Plots with SWC structures tend to produce about $ 58.8 more to $ 221worth of output than plots which did not have such structures. This study concludes that climate change is the major source of risk affecting crop productivity and adoption of SWC adaptation strategies to climate change has significant impact on crop production to poor farmers in the study area. Given the impacts of different types of SWC structures, government policies and programs aimed at promoting SWC measures should choose structures which are cost effective, location specific and choose structures which have positive impact on crop production.

Corporate Author: Getnet Alemu, Worku Gebeyehu & Demirew Getachew (Editors) & Ethiopian Economic Association (EEA)
Publisher: Ethiopian Economic Association (EEA)
ISBN/ISSN: 978-99944-54-38-9
Primary Descriptors: Global warming

Secondary Descriptor: Climatic changes -Economic aspects.

Geographic Descriptors: Ethiopia
Cataloge Date: 03/13/2015
Broad Subject heading: Climatic changes – Environmental aspects – Ethiopia
Call Number: 330.963 PRO 2014
Serial Key Title: Proceedings of the Eleventh International Conference on the Ethiopian Economy
Publication catagory: International Conference
Content type: EEA Publication
Volume: II
Publication date: 2014-06-02 00:00:00
Place of publication: Addis Ababa, Ethiopia
Type of material: Book
Current frequency: Annually
Author: Kalkidan Assefa, Million Tadesse and Bekele Hunde