Do climate-smart agriculture practices improve household welfare? Evidence from central highlands of Ethiopia

The implementation of climate-smart agriculture (CSA) practices reduces greenhouse gas emissions, enhances resilience to climate change, increases productivity, and improves farmers' well-being. This study examined the factors influencing the adoption of CSA practices and evaluated their impact on household welfare in a specific region of Ethiopia. This study employed a multinomial endogenous switching regression model to assess its impact. The results of the study revealed that the likelihood of using large possible combinations of CSA packages was positively and significantly influenced by the education status of the household head, engagement in off-farm activities, farm size, livestock holding, annual frequency of agricultural extension contact, access to credit, training on CSA practices, and access to weather information, while it was negatively affected by the age of the household head. Adopting a combination of CSA practices could increase annual food consumption expenditure by Birr 7,684.03 per adult equivalent, daily calorie intake by 3,457.57 kilocalories, and annual on-farm income by Birr 23,890.71. The findings reveal that adopting a combination of conservation agriculture, integrated soil fertility management, and livestock management practices significantly increases food consumption expenditure, calorie intake, and on-farm income for farm households. It is recommended that policies and programs promote these combined CSA practices to enhance household welfare and reduce the food insecurity.