Economics of Land Degradation, Sustainable Land Management and Poverty in Eastern Africa

Abstract

Land degradation – defined by the Economics of Land Degradation (ELD) initiative as a “reduction in the economic value of ecosystem services and goods derived from land” – is a serious impediment to improving rural livelihoods and food security of millions of people in the Eastern Africa region. The objectives of this study are fourfold: to identify the state, extent and patterns of land degradation in Eastern Africa (Ethiopia, Kenya, Malawi and Tanzania), to estimate and compare the costs and benefits of action versus inaction against land degradation; to assess simultaneously the proximate and underlying drivers of land degradation and the determinants of adoption of Sustainable Land Management (SLM); and to assess the causal effects of land degradation on households welfare.<br /> More recently, satellite–based imagery and remote sensing have been utilized to identify the magnitude and processes of land degradation at global, regional and national levels. This involves the use of Normalized Difference Vegetation Index (NDVI) derived from Advanced Very High-Resolution Radiometer (AVHRR) data and the use of high quality satellite data from Moderate Resolution Imaging Spectroradiometer (MODIS). Results based on NDVI measures show that land degradation occurred in about 51%, 41%, 23% and 22% of the terrestrial areas in Tanzania, Malawi, Ethiopia and Kenya, respectively between the 1982-2006 periods. To ensure accuracy of the NDVI observations, ground-truthing was carried out in Tanzania and Ethiopia through focused group discussions (FGDs). Following the Total Economic Value (TEV) framework, the annual cost of land degradation between 2001-2009 periods is about 248 million USD in Malawi, 1.3 billion USD in Kenya, 2.3 billion USD in Tanzania, and 4.4 billion USD in Ethiopia – representing about 5%, 7%, 14% and 23% of GDP in Kenya, Malawi, Tanzania and Ethiopia respectively. Taking action against land degradation is more favorable than inaction in both short-term (6 year) and a long-term (30 year) periods. During the 30-year period, for every dollar spent on taking action against land degradation is expected to return about $4.<br /> The study uses nationally representative household surveys and robust analytical techniques to capture a wide spectrum of heterogeneous contexts. Findings show that the key proximate drivers of land degradation include temperature, terrain, topography and agro-ecological zonal classification. Important underlying drivers of land degradation include factors such as land ownership, distance from the plot to the market, size of the plot, access to and amount of credit, and household assets. The adoption of sustainable land management practices is critical in addressing land degradation. Secure land tenure, access to extension services and market access are significant determinants incentivizing SLM adoption. This implies that policies and strategies that facilitate secure land tenure and access to SLM information are likely to incentivize investments in SLM. Local institutions providing credit services, inputs such as seed and fertilizers, and extension services must also not be ignored in the development policies.<br /> Evidence from Simultaneous Equation Model with panel data shows significant causality between land degradation (EVI decline) and poverty. On one hand, land degradation significantly decreases household consumption per-capita and increases poverty. On the other hand, household poverty increases the likelihood of land degradation.