Browsing by Author "Admassie, Assefa (PhD)"

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    Analyzing the Determinants of Farmers’ Preference for Adaptation Strategies to Climate Change: Evidence from North Shoa Zone of Amhara Region
    (Addis Ababa University, 2011-05) Mulatu, Negash; Admassie, Assefa (PhD)
    Studies on climate change adaptation recognize the importance of agro-ecology based research for designing context-specific policies and programs to climate change. This study, therefore, applied a case-study approach to examine farmers’ preference for climate change adaptation strategies and the factors deriving their preference. Thus, households’ preference for five types of climate change adaptation strategies (multiple cropping, livestock, soil conservation, irrigation, and changing planting dates) is identified and the determinants of the preference are analyzed using Rank-Ordered Logit Model. The results indicated that multiple cropping is the most preferred and frequently applied adaptation strategy to climate change, while livestock production is the least. The model also revealed that gender, age, farming experience and education level of the household head, household size, and farm and nonfarm income; farm size and farm distance to homestead; agricultural extension services and access to climate forecast information; farmers’ perceptions on temperature and rainfall affect farmers’ preference for the climate change adaptation strategies. Thus, policies and programs with the aim of reducing climate change impacts through adaptation need to consider important roles of these factors. The main barriers to climate change adaptation are lack of information or knowledge, shortage of money, shortage of land, and unsuitability of land and poor potential for irrigation. Although adaptation is one of the policy options for reducing the negative impacts of climate change, it is challenged by these constraints. Therefore, promoting investments and strengthening efforts to address these constraints is suggested to enhance farmers’ adaptation capacity and thus adaptation to climate change.
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    Determinants of Internet Penetration in Developing Countries: Evidence from Sub-Saharan Africa
    (Addis Ababa University, 2015-07) Shiferaw, Degenet; Admassie, Assefa (PhD)
    Internet use, especially in developing countries, has expanded rapidly in recent years. Even in light of this, penetration rates differ markedly between developed and developing countries and across developing countries. To identify the determinants of Internet penetration in low income countries of SSA, the study examines panel data for 25 SSA countries over the year 2009-2013 periods using Arellano and Bover (1995) dynamic panel data estimation technique. The study find evidence indicating that network externalities, GDP percapita, mobile cellular subscription, ICT goods import from developed countries, and urbanization are associated with high internet penetration rates. Estimates from Arellano Bover (1995) reveal that the main factor responsible for low rates of internet penetration is unemployment. Hence, policy measures geared towards improving the countries investment in telecommunication sector, expanding productive employment should be given due emphasis if the economy is to benefit from internet use. Key words: Internet penetration, Dynamic Panel data, and SSA
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    Estimating the Economic Value of Wildlife: The Case of Addis Ababa Lions Zoo Park
    (Addis Ababa University, 2011-06) Goshu, Andualem; Admassie, Assefa (PhD)
    Environmental and natural resources such as air, water, forests and wild animals give many advantages to human beings. However, the absence of market for these resources negatively affects the well-being of human beings by reducing the benefits that can be generated from these resources. In this case, economic valuation method helps to find the price or economic values attached to natural resources. Therefore, the proper valuation of non-market environmental commodities such as viewing wildlife has significant policy implications. The main purpose of this study is to estimate the total economic value of Addis Ababa Zoo Park using environmental economic tools. This study used the Individual Travel Cost Method (ITCM) on 158 on-site visitors, to estimate the value of viewing wildlife of Addis Zoo Park and the Double Dichotomous Contingent Valuation Method (DDCVM) on 90 respondents to investigate the mean WTP for the non use value of the park. The study used seemingly unrelated bivarite probit model to derive the demand function for the recreational use value of wildlife and truncated probit model to estimate the non use value contribution of wildlife. The regression result showed that travel cost, monthly income and SUP are important determinants of the recreational demand of the site. On the other hand the first bid price, monthly income, RSW and age are important determinant of willingness to pay for the non use value part of wildlife. The result of the study also showed that the potential annual use value of the park was estimated to be 11, 767,287 ETB per annum and the annual non use value of the wildlife is 17,160,634 ETB. Therefore, the annual total economic value of the park is approximately 22.5 times higher than the current revenue. Results of this study are very important to assist policy makers especially in revenue generation. This information can be used to estimate the benefits of further investment of the park, to price this site according to demand if there are budget limits, and in particular to invest in the protection of threatened wildlife
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    Exchange Rate Pass through in Ethiopia: A Vector Error Correction Model (VEC)
    (Addis Ababa University, 2014-06) Gidey, Negesi; Admassie, Assefa (PhD)
    It is recognized in the literature that exchange rate pass through is a very important instrument in the design of monetary policy, particularly in response to exchange rate shocks. This paper has examined the pattern of exchange rate pass-through to consumer price indices in Ethiopia in the sample period beginning from 1998Q1 up to 2013Q4 with 64 observations. Nominal effective exchange rate (NEER) and consumer price index (CPI) was the centre of investigation in the paper. Error correction model accompanied by impulse response function is applied for analyzing the data. The result shows that there is modest exchange rate pass through of 34 % in the long run. However, there is low exchange pass through in the short run in that it is not much difficult burden for the monetary authority.
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    Exchange Rate Pass-through to Import and Consumer Prices: Evidence from Ethiopia
    (Addis Ababa University, 2012-06) Berga, Helen; Admassie, Assefa (PhD)
    The fact that Ethiopia adopted managed floating exchange rate policy since 1992 as well as various trade reform measures taken makes the country’s import and consumer prices susceptible to the effects of exchange rate movements. Thus, the study investigates the degree of ERPT and its asymmetry to import and consumer prices in Ethiopia between 1991/92 and 2010/11 using two types of VAR models (SVAR and CVAR). Based on SVAR analysis the paper found that ERPT in Ethiopia during the period under review is moderate, significant and persistent in the case of import price and low and short lived in the case of consumer prices. The cointegration analysis shows incomplete ERPT to import price and absence of pass-through to consumer price in the long run. The result obtained from the asymmetric model suggests that ERPT to import prices is higher in periods of Birr depreciation than appreciation. Also, pass-through to import prices is found to be higher in periods of small changes than large changes in the exchange rate. The study also tries to get pass-through estimates in different inflation environments in order to test Taylor’s hypothesis. However, no evidence is found which supports the hypothesis in the case of Ethiopia. The fact that ERPT was found to be incomplete has useful implication to policymakers, especially in the design and implementation of exchange rate and monetary policy.
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    Exchange Rate Pass-Through to Import and Consumer Prices: Evidence from Ethiopia
    (Addis Ababa University, 2012-06) Berga, Helen; Admassie, Assefa (PhD)
    Exchange Rate Pass-Through to Import and Consumer Prices: Evidence from Ethiopia Helen Berga Addis Ababa University, 2012 The fact that Ethiopia adopted managed floating exchange rate policy since 1992 as well as various trade reform measures taken makes the country’s import and consumer prices susceptible to the effects of exchange rate movements. Thus, the study investigates the degree of ERPT and its asymmetry to import and consumer prices in Ethiopia between 1991/92 and 2010/11 using two types of VAR models (SVAR and CVAR). Based on SVAR analysis the paper found that ERPT in Ethiopia during the period under review is moderate, significant and persistent in the case of import price and low and short lived in the case of consumer prices. The cointegration analysis shows incomplete ERPT to import price and absence of pass-through to consumer price in the long run. The result obtained from the asymmetric model suggests that ERPT to import prices is higher in periods of Birr depreciation than appreciation. Also, pass-through to import prices is found to be higher in periods of small changes than large changes in the exchange rate. The study also tries to get pass-through estimates in different inflation environments in order to test Taylor’s hypothesis. However, no evidence is found which supports the hypothesis in the case of Ethiopia. The fact that ERPT was found to be incomplete has useful implication to policymakers, especially in the design and implementation of exchange rate and monetary policy.
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    Household Demand for Improved Sanitation Services: A Contingent Valuation Study on Addis Ababa, Ethiopia
    (Addis Ababa University, 2003-07) Gezahegne, Biruk; Admassie, Assefa (PhD)
    As any developing country, lack of adequate infrastructure provision is an enormous problem in Ethiopia. When we see the case of Addis Ababa, the current coverage of sanitation service is very low. It is this very fact that has made the government of Ethiopia to extend a concerted effort to improve the condition. In doing so, the government has stated that, the policy for increasing the coverage as well as the proper use of any sustainability of the service requires implementation of a cost recovery system. But this requires information on people’s preferences and WTP for the proposed improvement. Therefore, the paper examined the determinants of willingness-to-pay for improved sanitation service and investigates the possibility of cost recovery policy directions using the contingent valuation method. For the three suggested improvements (WTP for sewer connection, WTP for improved sludge disposal and WTP for public toilets) a face-to-face personal interview using bidding game elicitation technique on 440 households was conducted. The Heckman two-step estimator used for the empirical analysis revealed that income, education, family size and age are factors, which consistently affect the decisions whether or not one is willing to pay and the willingness to pay amount for the three WTP scenarios. In matching demand and supply, for the two suggested improvements (WTP for sewer system and WTP for improved sludge disposal), the mean WTP showed that consumers are not able to pay for the improvement to attain full recovery basis. The paper has shown the need for integrated design criteria for the respective sanitation facilities to achieve improvement in the service. Key Words: Willingness-to-pay, improved sanitation service, Heckman two-step estimator, contingent valuation method, Addis Ababa, Ethiopia