Uncovering Ecosystem Services of Expropriated Land: The Case of Urban Expansion in Bahir Dar, Northwest Ethiopia

In Ethiopia, urban expansion happens at high rates and results in land expropriations often at the cost of agriculture and forests. The process of urban expansion does not include assessment of ecosystem services (ES). This has been causing unintended environmental problems. This study aims to uncover ES of three most important land use types (cropland, agroforestry, and grassland) that are threatened by land expropriation for urban expansion in Bahir Dar City. The study applied a participatory approach using community perception and expert judgments (N = 108). Respondents were asked to locate their perceptions on the use of 35 different ES, and then to evaluate the potential of the land use. Respondents were shown to have the ability to differentiate between ES and land use in terms of their potential to deliver ES. The results show that agroforestry is expected to have a high relevant potential to deliver 31% of all ES, but cropland 20% and grassland 14%. Food, fodder, timber, firewood, fresh water, energy, compost, climate regulation, erosion prevention, and water purification and treatment were identified as the ten most important services. It is not only the provisioning services that are being supplied by the land use types which are expropriated for urbanization, but also regulating, supporting and cultural services. To ensure sustainable urban land development, we suggest the consideration of the use of ES and the potential of the land use to supply ES when making land use decisions, including land expropriation for urban expansion

Nexus between land development and the value of ecosystem services in Ethiopia : a contingent valuation study

In Ethiopia, the state owns all lands within the territory of the country. Cities are incorporating large parcels of land from their surrounding rural agricultural areas through land expropriation. However, these land developments do not consider the nonmarket value of ecosystem services (ES), which is causing a deterioration of the existing ES and reduction on the potential supply of ES from agricultural land. The aim of this study was to estimate the monetary value of nonmarketable ES from the agricultural land using a double-bounded dichotomous choice contingent valuation method. A survey of 524 smallholder farmers was conducted. In the survey, respondents were asked to state their willingness to pay for the improvement of some of the nonmarketable ES: erosion control, air and climate regulation, water regulation, and soil fertility. The estimation was carried out using a bivariate probit model. The results revealed that farmers are willing to pay on average 276 ETB (7.9 USD) per hectare per year for a period of 10 years. We found that individual characteristics such as age, family size, and a recent land expropriation experience adversely affect the willingness to pay by the farmers. On the other hand, individuals with higher income and larger land size are willing to pay more. In general, the study indicated that the nonmarket ES, which are affected by the land expropriation for urban expansion, are valuable for the farmers. Therefore, we recommend that the government consider the value of nonmarketable ES in its land use decisions and hence achieve sustainable land development

Eliciting farmers' preferences and willingness to pay for land use attributes in Northwest Ethiopia : a discrete choice experiment study

This study investigates farmers' preferences and willingness to pay for cropland attributes in Bahir Dar, north-west Ethiopia. A choice experiment is used to elicit farmers' preferences between different land use attributes, including a monetary attribute. The study was conducted in the croplands that are threatened by land expro-priation for urban expansion. A survey was undertaken with 144 farmers in four rural kebeles surrounding the city (Addis Alem, Weramit, Wereb and Zenzelima). In the survey, respondents were provided with hypothetical land purchasing decisions, with three alternatives (i.e., two hypothetical parcels and an opt-out option). A choice experiment was undertaken to measure farmers' interest in different types of croplands, which varies with respect to irrigability, number of trees per ha, soil erosion resistance and water holding capacity of the cropland. Estimation of two mixed logit models was carried out. The estimation results show that, although the farmers did not show strong preferences for each attribute of the cropland, many farmers in the area showed interest in the proposed alternative croplands. Farmers show more interest for the land that is irrigable, gentle slope and with medium water holding capacity. The results also indicate that farmers assign highest marginal willingness to pay (MWTP) (79.01 ETB per square meter) for irrigated land, followed by medium water holding capacity with MWTP of 52.13 ETB per square meter. We believe that the results of this study would help land use policy and decision makers in the study area to consider the various attributes of cropland in land use planning, including land expropriation programs, which assures the sustainability of ecosystem services

Take out the farmer: An economic assessment of land expropriation for urban expansion in Bahir Dar, Northwest Ethiopia

In Ethiopia, the demand for land for urbanisation is primarily met by converting rural land through expropriation. However, land expropriations are adversely affecting the previous land users by reducing the amount of production and their sources of income. In Bahir Dar, one of the fastest-growing cities in Ethiopia, approximately 300 landholdings are expropriated each year, on average, for urban expansion. This paper assesses the land expropriations to examine whether they offer economically appropriate compensation for the previous land users. Land expropriations for urbanisation between 2007/2008 and 2016/2017 were analysed based on data on land expropriation and its compensation payment obtained from the Bahir Dar City Land Administration and Management Office. Data were analysed using an exponential growth model and a stochastic budgeting technique in which Monte Carlo simulations are performed. Between 2007/2008 and 2016/2017, more than 1500 ha of land were included in the city's boundary through expropriation from 2900 landholders. The affected farmers received compensation that represents only 37 per cent of the value of current crop yields and its growth. The current compensation scheme ignores the impact of inflation on the prices of crops and assumes constant yields. It also excludes the value of crop residuals. We propose a workable discounted compensation framework that considers crop price and yield growths. This will make the compensation scheme more appropriate and make the affected farmers better off