Estimating the economic value of climate services for strengthening resilience of smallholder farmers to climate risks in Ethiopia: A choice experiment approach

B-Tier
Journal: Ecological Economics
Year: 2019
Volume: 162
Issue: C
Pages: 157-168

Authors (5)

Tesfaye, Abonesh (not in RePEc) Hansen, James (not in RePEc) Kassie, Girma Tesfahun (ICARDA) Radeny, Maren (not in RePEc) Solomon, Dawit (not in RePEc)

Score contribution per author:

0.402 = (α=2.01 / 5 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This study estimated the economic value of agricultural climate services for strengthening the resilience of smallholder farmers to climate variability and risks in Ethiopia. Using a choice experiment approach, the study introduced a hypothetical package of improved climate services to 600 randomly selected smallholder farmers in three districts across three different agro-ecological zones in the Oromia Regional State. A generalized multinomial logit (G-MNL) model was used to estimate preferred attributes of climate services and willingness-to-pay (WTP) values. The results show that the preferred bundle of improved climate services among smallholder farmers was one that could be communicated in short text message system, provided along with credit facility, and market information and one that favors participatory decision making by smallholders. The results further reveal that the WTP value exhibited high implicit price for participatory decision-making. The study sheds light on important characteristics of agricultural climate services that may improve their acceptability and usability among smallholders. It also highlights the importance of packaging additional services including digital and ICT-based solutions, financial and market information along with climate services to promote demand-driven last mile delivery systems. Engaging smallholder farmers in a participatory manner in the decision-making process can help them make informed decision.

Technical Details

RePEc Handle
repec:eee:ecolec:v:162:y:2019:i:c:p:157-168
Journal Field
Environment
Author Count
5
Added to Database
2026-01-25