Returns to farm-level soil conservation on tropical steep slopes: The case of the Eritrean Highlands

Araya, Bereket and Asafu-Adjaye, J. (1999) Returns to farm-level soil conservation on tropical steep slopes: The case of the Eritrean Highlands. Discussion Paper No. 253, Department of Economics, The University of Queensland.

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Author Araya, Bereket
Asafu-Adjaye, J.
Title Returns to farm-level soil conservation on tropical steep slopes: The case of the Eritrean Highlands
School, Department or Centre Department of Economics
Institution The University of Queensland
Report Number Discussion Paper No. 253
Publication date 1999-04-01
Subject 300805 Conservation
300104 Land Capability and Soil Degradation
Abstract/Summary This study conducts an economic analysis of investment in simple soil conversation technologies in the highlands of Eritrea. The data used in the analysis were obtained from a farm survey and supplemented with data from secondary sources. Risk analysis techniques are used to take account of the uncertainties regarding the relationship between soil erosion and crop yield. The financial analysis reveals negative net present values (NPVs) and internal rates of return (IRRs) below 12 per cent for various slope categories. On the other hand, the economic analysis returns positive NPVs and IRRS of over 20 per cent. The results clearly indicate that investment in soil conservation technology may not be a viable short term proposition from the farmer's point of view and yet the net social benefits are positive. There is a strong case for government to provide incentives for soil conservation in view of the economic benefits.
Keyword soil conservation
eritrea
cost-benefit analysis
risk analysis
Additional Notes ISSN: 1033-4661

Document type: Department Technical Report
Collection: Discussion Papers (School of Economics)
 
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