Impacts of selected land management practices on agricultural productivity in the Upper Blue Nile Basin, Ethiopia

Land degradation is a key global problem that affects sustainability and household welfare, as it leads to biodiversity loss and soil degradation. Sustainable land management (SLM) practices are becoming increasingly viewed as vital strategies to reduce such problems. However, empirical research into the economic impacts of adopting such practices, apart from obvious environmental benefits, is still scant. This study evaluates the impacts of selected SLM practices such as soil bund (with grass), stone-faced soil bund, and stone bund on agricultural productivity, which is measured by net crop value (NCV). To conduct this study, household data collected through surveys were used from 385 households, having a total of 733 plot-level observations. To capture potential endogeneity and selection problems, an endogenous switching regression (ESR) model was used. The estimated results show that selection bias is present, thus validating the use of the ESR model. About the estimated treatment effects, the adopters have a higher conditional expected NCV compared to the counterfactual case where no adoption occurred (US$ 777.43 vs. US$ 704.03). On the other hand, non-adopters have a low observed NCV, which is much higher if they had adopted such practices (US$ 565.29 vs. US$ 832.69). The obtained impacts are not only positive but also statistically significant for both groups: the average treatment effect on the adopters is estimated at US$ 73.40, while the average treatment effect on the non-adopters equals US$ 267.40. A negative transitional heterogeneity effect (US$ − 194.00) indicates that benefits from adopting SLM are higher for non-adopters, thus revealing incentives for adoption. Thus, SLM practices can be considered economically beneficial under current circumstances. Overall, such practices should be promoted by implementing relevant policies, including economic incentives to cover transitional disadvantages and increase NCV.