A GGLOMERATION PAYMENTS IN THE S HIRE R IVER B ASIN A NDREW B ELL 1 , - - PowerPoint PPT Presentation

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A GGLOMERATION PAYMENTS IN THE S HIRE R IVER B ASIN A NDREW B ELL 1 , - - PowerPoint PPT Presentation

A GGLOMERATION PAYMENTS IN THE S HIRE R IVER B ASIN A NDREW B ELL 1 , L AWRENCE M APEMBA 2 , G REGORY P ARKHURST 3 , T IM B ENTON 4 , K LAUS D ROPPELMANN 5 , P ATRICK T EMBO 2 , J OHN K AMANGA 2 , AND C LAUDIA R INGLER 1 1 I NTERNATIONAL F OOD P


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SLIDE 1

AGGLOMERATION PAYMENTS IN

THE

SHIRE RIVER BASIN

ANDREW BELL1, LAWRENCE MAPEMBA2, GREGORY PARKHURST3, TIM BENTON4, KLAUS DROPPELMANN5, PATRICK TEMBO2, JOHN KAMANGA2, AND CLAUDIA RINGLER1

1INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE 2BUNDA COLLEGE 3WEBER STATE UNIVERSITY 4UNIVERSITY OF LEEDS 5INDEPENDENT CONSULTANT

JANUARY 15, 2014 ESPA PROJECT INCEPTION WORKSHOP LONDON, UK

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SLIDE 2

MOTIVATION

  • Land degradation due to poor

management of topsoil a key issue for Malawi:

  • Livelihood impacts due to

reduced productivity

  • Landscape impacts on water

quality, aquatic habitat, and hydropower infrastructure

  • Of particular concern in the

Shire River Basin

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SLIDE 3

CONSERVATION AGRICULTURE (CA)

  • A suite of practices aimed to improve soil structure and

conservation, and water retention

  • In Malawi, this suite typically includes:

Mulching Zero (minimum) Tillage Crop rotation or intercropping (what not to do)

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SLIDE 4

Mulching Minimum Tillage Crop rotation

  • Reduce kinetic impact of rain
  • Reduce evaporation losses
  • Reduce soil temperature
  • Prevent pest build-up
  • Improve nutrient availability
  • Improve fertilizer use efficiency
  • Avoid build up of hard pans
  • Reduce risk of erosion
  • Improve infiltration capacity
  • Mitigating effects of climate

change

  • Carbon credits possible
  • Reduced nutrient and

pesticide loading of ground water, rivers and lakes

  • Reduced flood events down

stream

  • Reduced sediment load

At the farm scale At the landscape scale

CONSERVATION AGRICULTURE (CA)

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SLIDE 5
  • Yield penalty in early years of adoption
  • Hardpans take time to break up
  • Soil fertility takes long time to restore
  • T

echnology change is always associated with some risk of failure

  • Increased costs for inputs such as herbicides and even mulch

material

  • Benefits are shared, but many costs are private

WHY DO

WE NEED INCENTIVES?

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SLIDE 6
  • A two-part encouragement
  • A conventional voucher (subsidy) for adoption
  • A separate voucher (bonus) if neighboring farms adopt
  • Creates a network externality that can improve adoption
  • Enhanced diffusion and contiguity of adoption
  • More cost-effective provision of ecosystem services through side

payments, and self-policing

THE AGGLOMERATION PAYMENT (AP)

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SLIDE 7
  • Pilot study of an agglomeration payments program to promote CA,

within Malawi’s Agriculture Sector-Wide Approach (ASWAp)

  • A pilot study with 3 treatments:
  • Control (C)
  • Standard

Voucher (SV)

  • Voucher + Agglomeration Bonus (AB)
  • A coupled modeling framework to examine what pilot study results

might imply for the landscape

  • Agent-based model of farm household decisionmaking
  • Crop growth and runoff generation model in SWAT
  • Statistical models of ecosystem service provision

OUR PROJECT

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SLIDE 8

1. AP lead to higher levels of spatial contiguity among adopters than SV 2. AP lead to higher levels of diffusion and overall adoption rates than SV 3. AP increase contacts and interactions among neighbors, relative to SV, (potentially allowing additional benefits to accrue to the community) 4. AP lead to higher compliance (and lower cheating rates) than SV 5. Land-use patterns encouraged by AP lead to reduced sediment loading and improved runoff regulation when adopted at the landscape scale 6. Land-use patterns encouraged by AP lead to enhanced provision of natural predator and pollination services when adopted at the landscape scale 7. AP lead to more cost-effective sustainable land management improvements than SV

KEY HYPOTHESES

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SLIDE 9

AGENT-BASED MODELS?

Decision Outcome

Women make decisions about attending school, working, or having children Population growth rate emerges from their decisions to bear children Farmers make decisions about maintaining riparian cover along watercourse Runoff rate and water quality emerge from their land-use decisions Voters discuss their preferences in government Political leaders and policy direction emerge from their voting decisions

  • Model individual decision-makers (like farmers, or drivers, or voters)
  • Landscape properties emerge from individual interactions and decisions
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SLIDE 10

Cooperating Cows Model

Energy from Grass 51 Cow metabolism 6 Energy from Grass 51 Cow metabolism 9

A SIMPLE EXAMPLE

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SLIDE 11
  • We don’t know very well HOW decisions get made
  • Iterative modeling approach particularly important:

Desk Field Stakeholders

STRUCTURING ABM RESEARCH

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SLIDE 12

Agents in our model are provided different levels of conventional base payments (BP) and agglomeration payments (AP) to participate in the CA program. All agents make a decision on how to use their land: (Y) Participate in the CA program (N) Continue as normal, and not participate (C) Cheat – accept the incentive, but don’t participate in CA program Agents that choose (Y) or (C) then ‘encourage’ neighbors to participate.

A FIRST ITERATION FOR

THIS PROJECT

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SLIDE 13

Agents are described in a very simple way: A farm location, size, and relative yield from the land An accumulated ‘personal wealth’ or ‘capital’ A set of neighbors with whom they may interact * Agents are boundedly-rational, risk-averse, future-discounting profit maximizers ** When agents ‘encourage’ other neighbors to participate, they are offering a bit of their ‘capital’ – as if offering favors, time, or some other relationship-relevant transaction

A FIRST ITERATION FOR

THIS PROJECT

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SLIDE 14

Base Payment of 40 Base Payment of 10, Agglomeration Payment of 20

  • Similar net levels of adoption, at just over ½ the cost making use of agglomeration

payments

  • We know what assumptions are necessary to model decision, now must validate in

field, and expand model coupling

SOME ILLUSTRATIVE EARLY RESULTS

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SLIDE 15
  • Plans to streamline with, and leverage, efforts to build a DSS for the same region by

WorldFish

  • Particular interest to not create ‘just another modeling tool’

Agent- based model of land-use decisions S WAT model

  • f crop

growth, runoff, and water quality Literature models of E S provision S cenarios for incentives, markets, and climate Behavioral data from pilot study and social research Natural systems data inputs from literature

COUPLING MODELS

TOGETHER

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SLIDE 16

INSIGHTS FROM

THE SCOPING

VISIT

  • Farmer visits in Mpata Village, Ulongwe EPA, and

Kuthambo Village, Phalula EPA

  • Stakeholder inception workshops in Liwonde and

Lilongwe

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SLIDE 17

FROM OUR FARMER VISITS

  • CA is based on three

principles

– Crop rotation – Mulching – Minimum soil disturbance

  • But most farmers practicing

leave out one or two principles

  • Most decisions on land use

made individually

– Except when it comes selling parcels (community input)

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SLIDE 18
  • A number of different NGOs

and agencies promoting CA through vouchers and other incentives

  • World Bank beginning a massive

project in basin aimed at conservation

  • Stakeholders noted potential to

link with Hydropower in a PES scheme

  • Land-use decisions made in late

summer, making July-August the best time to begin program

FROM OUR STAKEHOLDER WORKSHOPS

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SLIDE 19
  • Jan-Mar 2014: Final sample design and planning with in-country partners
  • May 2014: Enumerator training
  • June-July 2014: Baseline Survey Data Collection from sampled farmers
  • August 2014: Initial Program promotion via lead farmers
  • June-July 2015: Midline follow-up and first payments to adopters
  • June-July 2016: Endline follow-up and second payments to adopters
  • June-July 2016: Endline Survey Data Collection from sampled farmers

OUR CALENDAR MOVING FORWARD

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SLIDE 20

Thank you for your attention