Methodological Evaluation of Smallholder Farm Systems in Ethiopia Using Difference-in-Differences for Cost-Effectiveness Measurement

Smallholder farming in Ethiopia faces significant climate change impacts, necessitating robust adaptation strategies. A difference-in-differences (DiD) approach was employed to compare pre- and post-intervention outcomes among treated and control groups of smallholder farmers. Energy consumption data were collected using sensors and recorded over two years. The DiD model revealed a 15% reduction in energy costs for the intervention group compared to controls, with an estimated 95% confidence interval around this effect size indicating robustness. While preliminary findings suggest cost savings through improved energy management practices, further research is needed to validate these results across different regions and contexts. Future studies should extend the DiD model to larger sample sizes and incorporate additional variables such as soil health and market access for comprehensive evaluation. Smallholder farming, Ethiopia, Climate change, Cost-effectiveness, Energy efficiency, Difference-in-differences The empirical specification follows Y=β₀+β^ X+ε, and inference is reported with uncertainty-aware statistical criteria.