Small Scale Biogas Technology Adoption Behaviours of Rural Households and its Effect on Major Crop Yields in East Gojjam Zone of Ethiopia: Propensity Score Matching Approach

Abstract The objective of this study was to identify and assess the main determinants of small-scale biogas technology adoption and its effect on crop yields. The case study is based on cross-sectional data collected from 335 rural households in the East Gojjam Zone of Ethiopia. Both primary and secondary data were used for this study. Primary data were collected through a questioner-based survey from 197 biogas adopter (treated) and 138 non-adopter (control) households. The analysis was based on propensity score matching (PSM) methods to estimate the determinants and impact of biogas technology adoption on cereal crop yields. Estimates from the probit model indicate that cattle head, follow-up and support, extension contact, training access, distance to water sources, and distance to the market were the main determinants of the adoption of biogas technology. The comparison between adopters and non-adopters based on PSM reveals that the adopters and users of bio-slurry significantly increase the crop yields by 41.5quintal/year/household on average. In summary, PSM estimation confirms that users of biogas slurry had a positive and significant impact on crop yields. Agricultural and rural development policies of Ethiopia should consider the impact of biogas technology adoption behavior of households when devising policy actions within the Agricultural Transformation Plan.