This paper contributes to a growing body of empirical literature relating credit constraints and incomplete insurance to investment decisions. We use panel data from rural Ethiopia to investigate whether participation in a safety net program enhances fertilizer adoption. Using a diff erence-in-di fference estimator and inverse propensity score weighting, we find that participation in Ethiopia's food-for-work (FFW) program increased fertilizer adoption. Results also indicate that the intensity of fertilizer usage increased with livestock holdings for food-for-work-participant households, providing some evidence that the intervention helped asset-rich farm households more than asset-poor households. We fi nd no significant e ffects of free distribution on fertilizer adoption or intensi fication. Our results are consistent with the hypothesis that safety nets can be viewed as mechanisms that allow households to take on more risk to pursue higher pro ts. The paper highlights important policy implications related to the inter-related dynamics of safety nets and extension services that aim at promoting productivity-enhancing modern agricultural technologies.
Common Resources — Apr 4, 2022
Managed Fires Can Help Mitigate the Risks Posed by Increasing Frequency of Wildfires
As damages from wildfires mount, mitigation is becoming ever more important to stanch increases in wildfire activity. Given the scale of need for effective forest management, managed wildfires—employed with care and consideration—can be a viable option.
Common Resources — Mar 16, 2022
“Can We Please Stop Talking about Energy Independence?”
As long as the United States participates in the global economy and enjoys the benefits that come with access to low-cost minerals, metals, and fuels produced abroad, it cannot—and should not—seek independence from the global energy system.
Press Release — Jun 18, 2019
New Episode of Resources Radio on Rural Energy Access
In this podcast, Subhrendu Pattanayak discusses ways rural energy access can be improved.