Feasibility of Green Credit as an Incentive for Natural Resource Management in Kenya
Ngigi, Obadiah H. (2018). Feasibility of Green Credit as an Incentive for Natural Resource Management in Kenya. UNU-INRA Working Paper. UNU-INRA.
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Sub-type Working paper Author Ngigi, Obadiah H. Editor Ayuk, Elias T.
Quartey, Vicentia Y.Title Feasibility of Green Credit as an Incentive for Natural Resource Management in Kenya Series Title UNU-INRA Working Paper Volume/Issue No. No. 32 Publication Date 2018-09-21 Place of Publication Accra Publisher UNU-INRA Pages vii, 25 pages Language eng Abstract The greatest challenge smallholder farm enterprises in Kenya face is soil degradation through soil erosion. Past command and control approaches as well as other incentive-based approaches have focused on downstream interests, while ignoring the value of good soil management practice as a business operation within the farming enterprise. Farmers could potentially benefit from improved soil conservation and therefore ensure sustainable productivity of their soil asset. Despite the interest in soil conservation practices, they cannot afford initial costs and sometimes lack technical knowledge requisite for establishing the appropriate technologies. Existing credit service providers do not consider soil as an asset and do not have provisions for supporting its conservation. Additionally, smallholder farmers lack incentives to invest in sustainable agricultural practices. Appropriately designed green credit can provide both incentive and impetus for farmers to invest in sustainable soil and water management practices, which reduce soil erosion and in the long run ensure restoration of soil fertility and land productivity. This feasibility study was conducted to determine the demand for environmental conditional credit and the factors affecting farmers demand for it. Contingent valuation method was used to estimate the demand and factors affecting green credit. Results obtained from a survey of 100 smallholder farmers reveal that there is demand for environmental conditional credit among smallholder farmers in Kenya and that green credit can be a strong incentive for behavior change towards natural resource management. The study recommends the establishment of a fund for environmental lending to improve ecosystem-based adaptation. Keyword Farmers
Sustainable finance
Green credit
KenyaCopyright Holder UNU-INRA Copyright Year 2018 Copyright type Fair use permitted ISBN 9789988633318 -
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