16 pages, There is growing evidence that religiosity affects important socio-economic outcomes. A potential channel through which religiosity affects these outcomes is by shaping individuals’ risk preferences. We combine a lab-in-the-field experiment, survey, and focus-group discussions to investigate the effect of religiosity on risk-taking among rural people in Ethiopia. We find evidence that religious farmers are more risk-taking. The effect is likely driven by the trust/belief in God as the omniscient and just power in determining outcomes under uncertainty. This is further corroborated by results from follow-up focus-group discussions.
Saweda O. Liverpool-Tasie, Lenis (author), Salim Nuhu, Ahmed (author), Awokuse, Titus (author), Jayne, Thomas (author), Muyanga, Milu (author), Aromolaran, Adebayo (author), and Adelaja, Adesoji (author)
Format:
Journal article
Publication Date:
2022-04-19
Published:
United States: Wiley Online
Location:
Agricultural Communications Documentation Center, Funk Library, University of Illinois Box: 205 Document Number: D12576
27pgs, In spite of mounting evidence about the growth of medium-scale farms (MSFs) across Africa, there is limited empirical evidence on their impact on neighbouring small-scale farms (SSFs). We examine the relationships between MSFs and SSFs, with particular focus on the specific mechanisms driving potential spillover effects. First, we develop a theoretical model explaining two propagating mechanisms: learning effects (training) and cost effects (reduced transactions cost). An empirical application to data from Nigeria shows that SSFs with training from MSFs tend to use higher levels of modern inputs (have higher productivity), and receive higher prices and income. The results also show that purchasing inputs from MSFs reduces the costs of accessing modern inputs and is associated with higher inorganic fertiliser use by SSFs. Our results suggest that the benefits of receiving training and purchasing inputs from MSFs are particularly important for very small-scale producers, operating less than 1 hectare of land. This implies that policies which promote the efficient operation of MSFs and encourage their interaction with SSFs can be an effective mechanism for improving the productivity and welfare of smallholder farms, hence reducing their vulnerability to extreme poverty.
13 pages, In Ghana, groundwater, accessed through wells and boreholes, is generally unregulated and may be contaminated with pollutants including excess nitrates from agricultural chemical fertilizers. Yet, studies estimating how clean groundwater is valued are not available in Ghana. In addition, some research suggests that the pre-experiment information provided to survey respondents affects their valuation of an identical outcome. This paper estimates smallholder farmers’ preferences for groundwater protection using pre-experiment information focused on one of two outcomes: environment or health. The double-bounded contingent valuation (DBCV) approach is used to estimate willingness to pay (WTP) to protect groundwater quality. The estimation accounts for shift and anchoring effects, which are common issues with the DBCV method. The mean WTP from the health (environmental) information subsample is about US$19 (US$17) per acre, and the values are significantly different between the information conditions. The findings shed light on the importance of using precise information in eliciting WTP in a developing country setting.
