“Land degradation and water shortages are major issues in developing countries, contributing to reduced economic output, lower growth potential and increased poverty. The immediate trade-off between short-term welfare and long-term agricultural development in the highland regions of Ethiopia represents a challenge to successful economic development in a predominantly agricultural-based economy. Although previous studies investigated country-level economic costs of sustainable land and watershed management (SLWM) in Ethiopia, few quantitative assessments of household level SLWM adoption and maintenance, linked to benefit payoff horizons and magnitude, exist in recent literature. Finally, we briefly discuss the benefits and costs of implementing SLWM for individual farmers and calculate an approximate net present value of investing in such infrastructure. We find that although value of production increases given these investments, the benefit may not always outweigh the costs of implementation, and policy measures to incentivize construction and maintenance may be needed.”
