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\hypersetup{pdftitle={Combining Sustainable Agricultural Practices Pays Off: Evidence on Welfare Effects from Northern Ghana},pdfauthor={Gebrelibanos Gebremariam, Tobias Wünscher},pdfsubject={Tropentag 2016: Abstract},pdfkeywords={Consumption Expenditure, Ghana, Multinomial Endogenous Treatment Effect, net crop income, SAPs},pdfpagemode=None,colorlinks=true}
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\parbox[b]{13.4cm}{\centering \large{\textbf{Tropentag, September 18-21, 2016, Vienna, Austria}}\\[1ex] \Large{``Solidarity in a competing world ---\\fair use of resources''\\[2ex]}}
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\Large{\textbf{Combining Sustainable Agricultural Practices Pays Off: Evidence on Welfare Effects from Northern Ghana\footnote{\textbf{Contact Address:} Gebrelibanos Gebremariam, University of Bonn, Center for Development Research (ZEF), Walter-Flex-Str. 3 - D-53113, Bonn, Germany, \mbox{e-mail}: \email{g.gebremedhin@gmail.com}}\\[0.8ex]}}
\normalsize{\textsc{Gebrelibanos Gebremariam$^{1}$, Tobias Wünscher$^{2}$}}
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\begin{itemize*}
\item[]{\small{\textit{$^{1}$University of Bonn, Center for Development Research (ZEF), Germany}}}
\item[]{\small{\textit{$^{2}$University of Bonn, Center for Development Research (ZEF), Germany}}}
\end{itemize*}
\index[author]{Gebremariam, Gebrelibanos}
\index[author]{Wünscher, Tobias}
\begin{center}
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\textbf{Abstract}
\begin{abstract}
\normalsize{
Sustainable Agricultural Practices (SAPs) are believed to improve households' welfare coupled with addressing the adverse effects of climate change.  While literature provides robust evidence on their welfare impacts in isolation, there is limited evidence on how combinations of sustainable agricultural practices contribute to households' welfare. Due to complementarity and substitution effects and cost involved in adopting SAPs, combinations may have impacts that are higher or lower than individual effects. To shed light on this question we employ cross"=sectional data from northern Ghana, which were collected from 421 households and 1229 plots. Results reveals revealed considerable heterogeneities in the SAPs adoption ranging from none adoption to all the SAPs at the plot and household levels. We investigate the adoption and impacts of SAPs on net crop income per acre and consumption expenditure per capita. This study specifically relates households subjective risk preference with the adoption of SAPs. We employed a maximum simulated likelihood estimation of a Multinomial Endogenous Treatment Effect Model (METEM) to account for observable and unobservable heterogeneity that influences SAPs adoption decisions and the outcome variables. Our results reveal that adoption decisions are affected by household characteristics such as age of the head of the household and education of the head and plot level characteristics. Results also reveals that risk aversion preferences of households is important factor in making decision to adopt SAPs. We find that adoption of SAPs significantly increase net crop income and consumption expenditure except when soil \& water conservation is adopted in isolation. We find that SAPs have a stronger effect on income and expenditure when adopted as a package (all together) rather than in isolation or in sub groups.  }

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\noindent \textbf{Keywords:} Consumption Expenditure, Ghana, Multinomial Endogenous Treatment Effect, net crop income, SAPs
\index[key]{Consumption Expenditure}
\index[key]{Ghana}
\index[key]{Multinomial Endogenous Treatment Effect}
\index[key]{Net crop income}
\index[key]{SAPs}
\end{document}
