The impact of adaptation practices on crop productivity in northwest Ethiopia: an endogenous switching estimation

ABSTRACT Climate change and variability adversely affect smallholder farmers in developing countries, including Ethiopia. In response, farmers are adopting various adaptation strategies. However, there is a paucity of studies examining whether or not these responses benefit farmers in increasing crop productivity. Cognizant of this fact and its policy importance, this study empirically analyzes the impact of adaptation strategies on crop productivity in northwest Ethiopia. We collected data through household survey questionnaire, focus group discussion and key informant interview. We also analyzed time-series climate data to see how crop yield responds to climate variability. The empirical model employs the endogenous switching regression. Climate information and distance to market are validated as instrumental variables. The model revealed that farmers who adopted adaptation strategies would have gained lower yield if they had not adopted them; and those who did not adopt a strategy would have gained higher yield than if they had. Improved seed, contact with development agents (DAs), urea, compost and rainfall are significantly associated with the likelihood of increasing yield. The results also show systematic difference where age is inversely related with adapters and vice versa for non-adapters. Hence, adaptation interventions should consider these heterogeneities