Adoption Of Bioenergy Crops, Income And Contract Preferences Among Farmers In Northern Ghana: The Case Of Jatropha

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dc.contributor.author Guentang, L.S.B.
dc.date.accessioned 2018-05-21T12:34:25Z
dc.date.available 2018-05-21T12:34:25Z
dc.date.issued 2018-02
dc.identifier.uri http://ugspace.ug.edu.gh/handle/123456789/23178
dc.description Thesis (MPhil) en_US
dc.description.abstract In order to solve the crisis faced by the energy sector in Ghana, Jatropha has been promoted as a panacea and promising crop for bioenergy generation. Like other crops, Jatropha cultivation comes with opportunities. The study aims at analyzing how Jatropha adoption influences the level of crop incomes of farmers and the preferences for production contracts in Northern Ghana. The first objective is to identify the factors explaining farmers’ adoption and land allocation of Jatropha in Northern Ghana. The second objective is to identify the factors explaining farmers’ decisions to adopt Jatropha either on fertile or marginal lands in Northern Ghana. The third objective of the study measured the impact of Jatropha cultivation on farmers’ crop incomes in Northern Ghana. The fourth objective is to identify farmers’ preferences for contracts attributes in Jatropha cultivation in Northern Ghana. A double hurdle model is used to analyze Jatropha adoption decisions and its extent, in terms of land allocated to the crop. A bivariate Probit model is also used to analyze Jatropha adoption decisions taking into account the type of land (fertile vs marginal). A Propensity Score Matching (PSM) method is used to measure the impact of adopting Jatropha on total crop incomes of farmers. Through a Discrete Choice Experiment (DCE), a Random Parameter Logit (RPL) model is used to identify farmers’ preferences for contract to produce Jatropha. The results show that farm and farmer’ characteristics (District, age, number of adult members in the household, off-farm activities, hired labour, gender, and distance to market), institutional factors (extension services, FBO and access to credit) and risk preferences have a significant role in explaining farmers’ adoption decision on bioenergy crops such as Jatropha. The influence of these factors differs when the type of land used to grow the crop is taken into consideration. Factors such as District, off-farm activities engagement and credit access are significant only on marginal land though the number of adults in the household, education, hired labour, age, extension services, FBO and risk attitude are significant on fertile land only. The study also finds that Jatropha adoption significantly reduces the level of total household crop income per hectare of farmers. The study finds a significant and positive standard deviation coefficient for all contract attributes (written contract, support from the buyer in the form of “Seeds, technical training, fertilizers and pesticides only”, “Seeds, fertilizers and pesticides only”, “Seeds and technical training only” and renegotiation option) revealing then heterogeneity of preferences for these attributes among farmers. Farmers require an additional compensation ranging from GH₵ 0.16 to GH₵ 2.27 per kilogram of Jatropha harvested for the inclusion of these contract attributes. The promotion of Jatropha cultivation should to be properly regulated to avoid the use of fertile land for Jatropha cultivation. There is a need to develop appropriate strategies and a regulatory framework to harness the potential economic opportunities from Jatropha cultivation, while protecting rural people from converting part of their fertile lands to Jatropha cultivation at the expense of food crops.; the availability of institutional facilities such as access to credit to promote Jatropha adoption decisions on marginal lands will sustain farmers’ interest in production. The study recommends Jatropha contract design based on written contract where the contents of the contract and risks between farmers and the investors (buyers) are clearly stated. A contract containing support from the buyer in the form of seed, technical training fertilizers and pesticides should be encouraged. en_US
dc.language.iso en en_US
dc.publisher University of Ghana en_US
dc.subject Adoption Of Bioenergy Crops en_US
dc.subject Income en_US
dc.subject Contract Preferences en_US
dc.subject Farmers en_US
dc.subject Northern Ghana en_US
dc.subject Jatropha en_US
dc.title Adoption Of Bioenergy Crops, Income And Contract Preferences Among Farmers In Northern Ghana: The Case Of Jatropha en_US
dc.type Thesis en_US


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