Prices, loans or ambiguity? Factors influencing groundwater irrigation adoption in Ethiopia
Governments in sub-Saharan Africa promote the expansion of irrigation to improve food security, primarily through the adoption and use of groundwater-based smallholder private irrigation. Using the case of Ethiopia, we examine farmers’ willingness to adopt smallholder private irrigation packages in response to subsidies on pump prices, loan availability and reduction in ambiguities related to borehole drilling. The results of the research highlight that subsidizing pump prices may not be the best use of public funds to expand irrigation.