Impact of Soil and Water Conservation on Rural Livelihoods in Ethiopia: Insights from Propensity Score Matching

Research on Soil and Water Conservation (SWC) adoption in Ethiopia often overlooks farmers' challenges and livelihood impacts, emphasizing the need for studies on the physical and socioeconomic factors influencing sustainable land management. This study examines the effect of SWC practices on rural livelihoods in Tehuledere Woreda, Ethiopia. Data were collected from 333 households (163 treatment and 170 control) through surveys and analyzed using STATA, with Propensity Score Matching (PSM) employed due to the lack of a baseline survey. The PSM analysis focused on balancing the treatment and control groups, particularly regarding the variable "ANNUAL_INCOME." The unmatched analysis showed a significant income difference, with the treatment group (SWC adopters) earning an average of $111,775.46, compared to $72,338.82 for the control group (non-adopters), resulting in a $39,436.64 income gap. The Average Treatment Effect on the Treated (income difference between SWC adopters and non-adopters.) for annual income was estimated at $109,344.07, indicating the income difference between the treated group and a counterfactual control group. Further examination of the PSM results revealed some imbalances between the groups, especially concerning annual income. The findings suggest that households adopting SWC practices have significantly higher annual incomes than non-adopters. These findings underscore the need for targeted interventions to enhance SWC adoption and improve livelihoods in rural Ethiopia. To improve rural livelihoods in Tehuledere Woreda, policies should focus on addressing gender gaps, enhancing education, diversifying income sources, securing land tenure, and expanding access to credit and labor.