Department of Economics, Umeå University, SE 901 87 Umeå, Sweden; Department of Economics, Addis Ababa University, P.O. Box 1176, Addis Ababa, Ethiopia; Department of Economics, University of Gothenburg, P.O. Box 640, 405 30 Göteborg, Sweden
Andersson, C., Department of Economics, Umeå University, SE 901 87 Umeå, Sweden; Mekonnen, A., Department of Economics, Addis Ababa University, P.O. Box 1176, Addis Ababa, Ethiopia; Stage, J., Department of Economics, University of Gothenburg, P.O. Box 640, 405 30 Göteborg, Sweden
We evaluated the impacts of the Ethiopian Productive Safety Net Program (PSNP) on rural households' holdings of livestock and forest assets/trees. We found no indication that participation in PSNP induces households to disinvest in livestock or trees. In fact, households that participated in the program increased the number of trees planted, but there was no increase in their livestock holdings. We found no strong evidence that the PSNP protects livestock in times of shock. Shocks appear to lead households to disinvest in livestock, but not in trees. Our results suggest that there is increased forestry activity as a result of PSNP, and that improved credit access encourages households to increase their livestock holdings. © 2009 Elsevier B.V.