Domestic and agricultural water use by rural households in the Oueme River Basin (Benin): an economic analysis using recent econometric approaches

Improving the management of water resources as well as an efficient use of available water are particularly important to address the increasing scarcity of water and the low level of water accessibility in many developing countries. However, better water management requires an understanding of the existing pattern of water use for domestic and agricultural activities. With a view towards contributing to such knowledge, this dissertation analyzes domestic and agricultural water use by rural households in the Oueme river basin of Benin. This is done within the scope of three research articles. The specific objectives of the dissertation were: 1) to analyze determinants of domestic water use in the rainy and dry seasons; 2) to estimate households? willingness to pay for water supply improvements and analyze its determinants; and 3) to quantify the efficiency of water use for agricultural production and identify factors explaining the differences in water use efficiency among households. The analyses are built on primary data collected from a household survey administrated to a sample of 325 households in the Oueme river basin, in 2007. To analyze domestic water demand, we identified three types of households: those that use only free water sources, those that use only purchased sources and those that combine both free and purchased sources. A system of two demand equations (one equation for free water and another for purchased water) was estimated using a Seemingly Unrelated Tobit (SURT) approach. The advantage of using the SURT approach is that it is appropriate to account simultaneously for the censored nature of water demand and the correlation between the error terms of two equations. In the analysis of households? willingness to pay (WTP) for water supply improvements, particular attention was given to the distribution of WTP, which has been addressed using (arbitrary) parametric assumptions in many previous studies. To avoid distributional assumptions, the dissertation introduced a semi-nonparametric bivariate probit approach to estimate WTP. To analyze water use efficiency, the dissertation combined an input-specific Data Envelopment Analysis (DEA) with a bootstrapped Tobit model. Bootstrapped Tobit takes care of the dependency problem between efficiency estimates. The analysis of water use efficiency focused on vegetable production in the dry season when water is scarce. Results showed that the average daily domestic water consumption per household during the rainy season (252 liters) is significantly higher than in the dry season (216 liters). SURT estimation results showed that water demand from purchased sources is perfectly price inelastic in the rainy season; indicating that rural households in Benin are very insensitive to changes in water price. This suggests that households are willing to pay more for water supply improvements, due not only to the necessity nature of water but also to its scarcity. Factors affecting domestic water use in the rainy season are household size and composition, education, time for fetching and accessibility to water sources. In the dry season, econometric analysis revealed that there is a positive relationship between wealth and the use of water from free and purchased sources. This result suggests that poverty reduces water use. Purchased water demand in the dry season is also perfectly price inelastic. However, a comparison of determinants of water use between seasons revealed that variables such as time for fetching water, access to water sources and wealth have differential influence on water use during the rainy and dry seasons. These results imply that policy makers must consider among other factors seasonal variation of the determinants of water use. The results of this dissertation provided the first evidence that, in rural Benin, households wanting to improve water supplies are willing to pay more than existing water prices. Households are willing to pay over one and a half times the present average water price. Furthermore, results revealed that estimated WTP would generate substantial revenue from the community, which can lead to significant reductions in subsidies. The supply of safe and adequate water based on estimated WTP will reinforce both the participation of the rural population in water supply management and the sustainability of water facilities. A related policy is that a demand-side management approach can be successfully implemented in rural areas for water supply improvements and sustainability. The important determinants of WTP for water supply improvements were education, age of household head, wealth, queue time at existing water sources and preferred improvements. The policy implication of these findings is that a combination of socio-economic factors affecting WTP, and a demand-side management approach, are likely to improve the sustainability of water projects in rural areas of Benin. Average water use efficiencies were 0.38 and 0.50 under constant and variable returns to scale specification, respectively. This implies that if vegetable farmers in the study area become more efficient in water use, significant amounts of water could be saved and made available for dry season farming land expansion. In addition, many farmers operated at an increasing return to scale (average scale efficiency is 0.70), revealing that most farms should be larger than they currently are to produce efficiently. Water use efficiency in vegetable production was determined by market access, land fragmentation, extension service, ratio of children to adults, water expenditure, water sources, off-farm income and wealth. Results suggest that policy makers should focus on improving farmers? access to input and output markets as well as their access to technical information and training through extension service or NGOs. The findings also showed that households paying for irrigation water or systems are more efficient in water use. However, any price policy should be combined with other policy options such as training and development of improved irrigation techniques adapted to socio-economic conditions of farmers. Overall, various socio-economic characteristic of households and institutional factors are found to explain water use for both domestic and agricultural activities. These factors must be carefully considered for the design and implementation of water management programs that can lead to sustainable accessibility to water. Although the research focuses on Benin, most of the conclusions and policy implications are relevant and could be applicable to many developing countries with similar socio-economics conditions. The dissertation also applies and extends recent econometric approaches that may be used for empirical studies on water management policy in developing countries.Die Verbesserung des Managements von Wasservorkommen und die effiziente Nutzung des verfügbaren Wassers sind besonders wichtig, um zunehmendem Wassermangel und dem geringen Zugang zu Wasser in vielen Entwicklungsländern zu begegnen. Ein besseres Wassermanagement erfordert jedoch das Verständnis der vorhandenen Nutzungsmuster und Bestimmungsgründe des privaten und landwirtschaftlichen Wasserverbrauchs. Diese Dissertation analysiert, mit dem Ziel das Wissen in diesem Bereich zu erweitern, den privaten und landwirtschaftlichen Wasserverbrauch von ländlichen Haushalten im Einzugsgebiet des Oueme-Flusses in Benin. Diesem Ziel wird im Rahmen von drei Forschungsarbeiten, die diese Dissertation bilden, Rechnung getragen. Die spezifischen Ziele der Forschungsarbeiten sind 1) die Determinanten zu analysieren, die den privaten Wasserverbrauch während der Regen- und Trockenzeit bestimmen; 2) die Zahlungsbereitschaft für eine verbesserte Wasserversorgung zu schätzen und ihre Determinanten zu analysieren; und 3) die Effizienz des landwirtschaftlichen Wasserverbrauchs zu quantifizieren und Faktoren zu identifizieren, welche die Unterschiede der Wasserverbrauchseffizienz zwischen den Haushalten erklären. Die Analyse wird mit Hilfe von Primärdaten durchgeführt, die im Jahr 2007 in einer Haushaltsumfrage mit 325 Haushalten im Oueme-Einzugsgebiet erhoben wurden. Um die private Wassernachfrage zu analysieren, wurden zunächst drei Haushaltstypen identifiziert: Haushalte, die nur kostenlose Wasserbezugsquellen nutzen; Haushalte, die nur Wasser aus gebührenpflichtigen Bezugsquellen nutzen; sowie Haushalte die sowohl gebührenpflichtige als auch kostenfreie Wasserbezugsquellen nutzen. Ein System zweier Nachfragefunktionen (eine für kostenloses und eine für gebührenpflichtiges Wasser) wurden mit einem Seemingly Unrelated Tobit (SURT) Ansatz ermittelt. Der Vorteil des SURT-Ansatzes ist, dass er sowohl die nach unten beschränkte Wassernachfrage, als auch die Korrelation der Störvariablen der beiden Gleichungen berücksichtigt. In der Analyse der Zahlungsbereitschaft der Haushalte für eine verbesserte Wasserbereitstellung wurde der Verteilung der Zahlungsbereitschaft besondere Aufmerksamkeit geschenkt. In vielen vorherigen Studien wurde dieses Problem durch die Anwendung von (beliebigen) parametrischen Annahmen angegangen. Um Annahmen über die Verteilung zu vermeiden, wurde in der vorliegenden Arbeit ein semi-nonparametrischer bivariater Probit-Ansatz für die Berechnung der Zahlungsbereitschaft eingeführt. Für die Analyse der Wasserverbrauchseffizienz wurde in dieser Arbeit eine Input-spezifische Data Envelopment Analysis (DEA) mit einem bootstrapped Tobit Model kombiniert. Das bootstrapped Tobit Model berücksichtigt das Abhängigkeitsproblem zwischen den Effizienzschätzungen. Die Analyse der Wasserverbrauchseffizienz richtet sich hier besonders auf die Gemüseproduktion in der Trockenzeit, wenn nur wenig Wasser zur Verfügung steht. Die Ergebnisse zeigen, dass der durchschnittliche private Tagesverbrauch pro Haushalt während der Regenzeit (252 Liter) signifikant höher ist als in der Trockenzeit (216 Liter). Die Ergebnisse der SURT-Analyse zeigen, dass die Nachfrage nach Wasser von entgeltlichen Bezugsquellen während der Regenzeit vollkommen preisunelastisch ist, was bedeutet, dass beninische Haushalte kaum auf Wasserpreisänderungen reagieren. Dies weist auf eine Bereitschaft der Haushalte hin, für eine verbesserte Wasserbereitstellung mehr zu bezahlen. Dies hängt nicht nur damit zusammen, dass Wasser ein lebenswichtiges Gut ist, sondern auch mit der Knappheit des Gutes. Faktoren, die den privaten Wasserverbrauch in der Regenzeit beeinflussen sind Haushaltsgröße und -zusammensetzung, Bildungsniveau, die für das Wasserholen verwendete Zeit, sowie die Zugänglichkeit der Bezugsquellen. Die ökonometrische Analyse machte weiterhin deutlich, dass es in der Trockenzeit einen positiven Zusammenhang zwischen dem Wohlstandsniveau und der Nutzung von kostenfreien und entgeltlichen Bezugsquellen gibt. Hiervon lässt sich ableiten, dass Armut den Wasserverbrauch reduziert. Die Nachfrage nach Wasser von entgeltlichen Bezugsquellen ist in der Trockenzeit ebenfalls vollkommen unelastisch. Dennoch zeigt ein Vergleich der Determinanten, dass Variablen wie die für das Wasserholen verwendete Zeit, Zugänglichkeit zu Bezugsquellen und Wohlstand in Regen- und Trockenzeit einen unterschiedlich starken Einfluss auf den Wasserverbrauch haben. Dies bedeutet, dass politische Entscheidungsträger neben anderen Faktoren auch die saisonale Schwankung der Determinanten des Wasserverbrauches berücksichtigen müssen. Die Ergebnisse dieser Doktorarbeit lieferten erste Belege dafür, dass beninische Haushalte, die die Wasserbereitstellung verbessern wollen, auch bereit sind, einen höheren als den bestehenden Wasserpreis zu bezahlen. Die Haushalte sind bereit das Eineinhalbfache des aktuellen Wasserpreises zu zahlen. Weiterhin zeigen die Ergebnisse, dass die errechnete Zahlungsbereitschaft beträchtliche Einnahmen aus den Gemeinden einbringen würde und zu einer Reduzierung der Subventionen führen könnte. Die Bereitstellung von sauberem und ausreichendem Wasser, wie sie von der Zahlungsbereitschaft ausgehend berechnet wurde, würde sowohl die Partizipation der ländlichen Bevölkerung am Wasserbereitstellungsmanagement als auch die Nachhaltigkeit der Wasseranlagen stärken. Dies impliziert auch, dass ein Management auf der Nachfrageseite erfolgreich die Wasserversorgung verbessern und die Nachhaltigkeit in ländlichen Gebieten erhöhen könnte. Die wichtigen Determinanten der Zahlungsbereitschaft für eine Verbesserung der Wasserversorgung sind das Bildungsniveau, das Alter des Haushaltsvorstands, der Wohlstand des Haushalts, die Zeit in der Warteschlange an der Bezugsquelle sowie die gewünschten Verbesserungen. Die sich hieraus ergebenen Implikationen für Entscheidungsträger sind, dass durch die Berücksichtigung einer Kombination sozio-ökonomischer Faktoren, welche die Zahlungsbereitschaft beeinflussen, und einem Management der Nachfrageseite sehr wahrscheinlich die Nachhaltigkeit von Wasserprojekten in ländlichen Gebieten Benins verbessert werden kann. Die durchschnittliche Effizienz des Wassereinsatzes ist unter konstanten Skalenerträgen 0,38 und unter variablen Skalenerträgen 0,50. Das bedeutet, wenn Gemüseproduzenten im Forschungsgebiet das Wasser effizienter nutzen würden, könnten erhebliche Mengen Wasser gespart und in der Trockenzeit für die Ausdehnung der Anbaufläche bereit gestellt werden. Außerdem arbeiteten viele Landwirte mit zunehmenden Skalenerträgen (die durchschnittliche Skaleneffizienz ist 0,70). Das heißt, um effizient zu produzieren sollten die meisten Betriebe größer sein als sie aktuell sind. Die Wassereinsatzeffizienz in der Gemüseproduktion wurde vom Marktzugang, der Landfragmentierung, vom Vorhandensein von Beratungsdiensten, dem Verhältnis von Kindern zu Erwachsenen, den Ausgaben für Wasser, den Wasserbezugsquellen, außerlandwirtschaftlichem Einkommen sowie dem Wohlstand der Haushalte bestimmt. Die Ergebnisse zeigen, dass Entscheidungsträger sich auf den Zugang der Landwirte zu Input- und Outputmärkten sowie den Zugang zu technischen Informationen und Training durch Beratungsdienste und nichtstaatliche Organisationen konzentrieren sollten. Die Ergebnisse zeigen weiterhin, dass Haushalte, die für Bewässerungswasser oder Bewässerungssysteme bezahlen, effizienter mit Wasser umgehen. Trotzdem sollte jede Preispolitik mit anderen politischen Maßnahmen wie Training oder der Entwicklung von verbesserten Bewässerungstechniken kombiniert werden und an die Bedingungen der Landwirte angepasst sein. Insgesamt erklären diverse sozio-ökonomische Charakteristika der Haushalte sowie institutionelle Faktoren den Wasserverbrauch für private und landwirtschaftliche Aktivitäten. Diese Faktoren müssen sorgfältig bei der Planung und Implementierung von Programmen zum Wassermanagement, die zu einer nachhaltigen Wasserversorgung führen können, berücksichtigt werden. Obwohl sich diese Forschungsarbeit auf Benin konzentriert, sind die meisten der Folgerungen und Implikationen für Entscheidungsträger auch in anderen Entwicklungsländern mit ähnlichen sozio-ökonomischen Bedingungen relevant und könnten in diesen angewandt werden. In dieser Dissertation werden neueste ökonometrische Ansätze angewandt und erweitert, die für empirische Studien im Bereich Wasserwirtschaftspolitik in Entwicklungsländern genutzt werden könnten

Estimation of the Economic Efficiency of Cashew Nut Production in Benin

This study contributes to the debate regarding the competitiveness of developing countries in the context of globalization. To take advantage of this trend, developing countries will have to position themselves properly through new policies and efficiency in production. In Benin, new orientation of agricultural policy concerns the diversification of exported products. Therefore, and due to the decrease of international price of cotton which represents the main exported crop, cashew nut, the second exported crop by Benin, becomes more interesting for government policy. The study quantified cashew nut production farmers’ efficiency using a stochastic production frontier and a cost function combined with numerical classification. Primary data were collected from a stratified random sample of 262 farmers in Benin. Using numerical classification, we distinguished three classes from cashew nut producers with an average plantation area of 3.6; 8.9 and 20 hectares. The results showed that scale effect was absent because larger farmers were not more efficient than the small ones. Results also revealed significant inefficient of input use in cashew nut production in Benin. Yet, about 39 % and 61 % of the cashew nuts’ farmers were technically and economically inefficient, respectively, indicating that farmers could increase output and households income through better use of available resources. The study also revealed that the farmers who were technically and economically inefficient have less experience in of cashew nut production, less contact with the extension structure and are not member of a farmers’ association.Benin, efficiency analysis, exported products, cashew nut, policy, Crop Production/Industries,

Is personalized better: Digital advisory and productivity differentials in rice farming in Nigeria

Personalized extension advisory deliver information that are more compatible with farmer production conditions and has a better chance of adoption and impacts. We exploit a rich four-round experimental panel data on RiceAdvice, a decision support app that provides personalized information on soil fertility management and other agricultural practices to rice farmers. We evaluate the impact of the app on technological, managerial, frontier yield, and fertilizer productivity differentials, while accounting for differences in production technologies possessed by the different treatment groups. Re sults based on the true random effects estimator suggest that exposure to RiceAdvice significantly increases the production possibilities and managerial performance of rice smallholders exposed to it (treated farmers), leading to an upward shift in the production frontier for those same farmers. Exposed farmers also have higher mean fertilizer productivity compared to the unexposed, especially when bundled with fertilizer in puts. The impacts are stronger in the early years but wanes over time. Ensuring consistent access to the app as well as fertilizer input could help sustain the gains

Addressing diarrhea prevalence in the West African Middle Belt: social and geographic dimensions in a case study for Benin

<p>Abstract</p> <p>Background</p> <p>In West Africa, the Northern Sahelian zone and the coastal areas are densely populated but the Middle Belt in between is in general sparsely settled. Predictions of climate change foresee more frequent drought in the north and more frequent flooding in the coastal areas, while conditions in the Middle Belt will remain moderate. Consequently, the Middle Belt might become a major area for immigration but there may be constraining factors as well, particularly with respect to water availability. As a case study, the paper looks into the capacity of the Middle Belt zone of Benin, known as the Oueme River Basin (ORB), to reduce diarrhea prevalence. In Benin it links to the Millennium Development Goals on child mortality and environmental sustainability that are currently farthest from realization. However, diarrhea prevalence is only in part due to lack of availability of drinking water from a safe source. Social factors such as hygienic practices and poor sanitation are also at play. Furthermore, we consider these factors to possess the properties of a local public good that suffers from under provision and requires collective action, as individual actions to prevent illness are bound to fail as long as others free ride.</p> <p>Methods</p> <p>Combining data from the Demographic Health Survey with various spatial data sets for Benin, we apply mixed effect logit regression to arrive at a spatially explicit assessment of geographical and social determinants of diarrhea prevalence. Starting from an analysis of these factors separately at national level, we identify relevant proxies at household level, estimate a function with geo-referenced independent variables and apply it to evaluate the costs and impacts of improving access to good water in the basin.</p> <p>Results</p> <p>First, the study confirms the well established stylized fact on the causes of diarrhea that a household with access to clean water and with good hygienic practices will, irrespective of other conditions, not suffer diarrhea very often. Second, our endogeneity tests show that joint estimation performs better than an instrumental variable regression. Third, our model is stable with respect to its functional form, as competing specifications could not achieve better performance in overall likelihood or significance of parameters. Fourth, it finds that the richer and better educated segments of the population suffer much less from the disease and apparently can secure safe water for their households, irrespective of where they live. Fifth, regarding geographical causes, it indicates that diarrhea prevalence varies with groundwater availability and quality across Benin. Finally, our assessment of costs and benefits reveals that improving physical access to safe water is not expensive but can only marginally improve the overall health situation of the basin, unless the necessary complementary measures are taken in the social sphere.</p> <p>Conclusion</p> <p>The ORB provides adequate water resources to accommodate future settlers but it lacks appropriate infrastructure to deliver safe water to households. Moreover, hygienic practices are often deficient. Therefore, a multifaceted approach is needed that acknowledges the public good aspects of health situation and consequently combines collective action with investments into water sources with improved management of public wells and further educational efforts to change hygienic practices.</p

Farmer uncertainty and demand for rice varietal identity information: DNA fingerprinting of smallholder rice varieties in Côte d’Ivoire

Information asymmetry is a key challenge facing farmers in sub-Saharan Africa, particularly regarding the identity and quality of crop varieties and other agricultural inputs. In this research, we contribute to a recent economics literature that uses advances in DNA fingerprinting technology and affordability to directly measure the identity of crop varieties, allowing this variable to be compared with farmers’ beliefs about the varieties that they cultivate. In our study, we additionally utilize a novel approach in which we elicit the demand of rice farmers in central Côte d’Ivoire for information about the variety they cultivate as well as their own beliefs about how sure they are of the variety’s identity. We connect our DNA fingerprinting analysis of producer seed samples to survey questions related to producer beliefs and demand, and find that the majority of the farmers in our dataset are not certain about the identity of the variety they cultivate. We further find that around 98 percent of producers in our dataset are willing to pay to obtain the results of DNA fingerprinting analysis of the variety they currently cultivate, from a minimum of around $0.20 to a maximum of ~$36 USD

Stakeholders prioritization of climate-smart agriculture (CSA) in the rice-based production systems of Mali

Agriculture, food and nutrition security, and the livelihoods of millions of people are affected by climate change. Given the scarce resources of most of the West African countries, there is a need to prioritize the technologies that need to be taken at scale to mitigate the climate change impacts. This study uses a stakeholders prioritization framework to assess the locally suitable interventions in the diverse rice-based production systems in Mali. The prioritization was made in two steps. First, all interventions were evaluated by stakeholders based on their climate-smart performance indicator (ability to increase farm productivity, income, and resilience and reduce greenhouse gas emission). Second, the interventions were evaluated based on their implementation feasibility (technical feasibility, cost, gender inclusivity, demand by the market, and alignment with the social and cultural context). The technologies’ CSA performance indicator was more determined by their ability to increase farm productivity and income, while their implementation feasibility was more driven by their technical feasibility and cost of implementation. Best bet CSA technologies and practices with high CSA performance indicator and high implementation feasibility score were RiceAdvice, submergence tolerant varieties, integrated rice – vegetable, and mechanical thresher in the irrigated lowland; submergence tolerant varieties, drought-tolerant varieties, RiceAdvice, and ASI thresher in the rainfed lowland; drought-tolerant varieties and RiceAdvice in the rainfed upland, and submergence tolerant varieties and RiceAdvice in the submergence system. This study shows the potential of using a stakeholders prioritization framework to inform investment in climate change adaptation and mitigation at the local level

Stakeholders prioritization of climate information services (CIS) in the rice-based production systems of Mali

This study used a stakeholder prioritization framework to assess and rank locally suitable climate information services (CIS) and implementation suitability with key stakeholders: Center for Mechanized Agriculture, seed companies (Faso Kaba), Green Innovation Centers, National Institute for Rural Economy, NGOs (GIE-GNELENI, JMI), Niger Office, Syngenta Foundation for Sustainable Agriculture, Women Association and Youth Association. The prioritization was made in two steps for each of the four major rice production systems in Mali (irrigated lowland, rainfed lowland, rainfed upland, and submergence). The first step consisted of the review and evaluation of location-specific CIS based on their contribution to increasing farm productivity, reducing yield loss due to climatic risks, and reducing greenhouse gas emissions. The second step consisted of the evaluation of the implementation feasibility, gender inclusivity, readiness to scale, cost of implementation, and demand by the market. In all the four production systems, the overall CIS performance score was more determined by the ability of the CIS to increase resilience than to increase productivity, income and to enhance gender inclusivity. In the irrigated lowland, the CIS technologies with a high score include cropping calendar construction, cold occurrence and duration, flooding occurrence and duration, information on dam water level, pest and disease occurrence, and suitable area for rice cultivation. In the rainfed lowland, the CIS technologies with a high score include flooding occurrence and duration, suitable area for rice cultivation, onset and cessation of the rainy season, cropping calendar construction, and pest and disease occurrence. In the rainfed upland, the CIS technologies with a high score include onset and cessation of the rainy season, pest and disease occurrence, seasonal rainfall amount, cropping calendar construction, and drought occurrence and duration. In the submergence system, the CIS technologies with a high score include suitable area for rice cultivation, pest and disease occurrence, flooding occurrence and duration, and cropping calendar construction. The framework used in this study provides a decision support tool for policymaking in adaptation and mitigation activities in the rice-based sector at the local level

Helping feed the world with rice innovations: CGIAR research adoption and socioeconomic impact on farmers

Rice production has increased significantly with the efforts of international research centers and national governments in the past five decades. Nonetheless, productivity improvement still needs to accelerate in the coming years to feed the growing population that depends on rice for calories and nutrients. This challenge is compounded by the increasing scarcity of natural resources such as water and farmland. This article reviews 17 ex-post impact assessment studies published from 2016 to 2021 on rice varieties, agronomic practices, institutional arrangements, information and communication technologies, and post-harvest technologies used by rice farmers. From the review of these selected studies, we found that stress-tolerant varieties in Asia and Africa significantly increased rice yield and income. Additionally, institutional innovations, training, and natural resource management practices, such as direct-seeded rice, rodent control, and iron-toxicity removal, have had a considerable positive effect on smallholder rice farmers’ economic well-being (income and rice yield). Additional positive impacts are expected from the important uptake of stress-tolerant varieties documented in several Asian, Latin American, and African countries