Department of Economics

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    The nexus between energy poverty and food poverty: Empirical evidence within Wereda Laelay Maychew Central Zone of Tigray region
    (Mekelle University, 2025-09-23) Zemichael G/yohans
    This study rigorously quantifies the causal effect of household energy poverty on the severity of food insecurity in Wereda Laelay Maychew, Central Zone of Tigray, addressing the critical methodological challenge of endogeneity present in previous correlation-based studies. The research employed a two-stage Control Function Approach (CFA), using geographic distance to the electricity grid as a valid instrumental variable. This allowed for unconfounded estimation of the impact on the Household Food Insecurity Access Score (HFIA_Score_27), a continuous count variable, via a corrected Poisson regression model. The formal endogeneity test conclusively validated the necessity of the CFA correction (P<0.001). The corrected estimates established a robust, positive, and highly significant causal relationship. Specifically, the Average Marginal Effect (AME) revealed that being classified as energy poor causes the expected HFIA_Score_27 to increase by an average of 15.72 units (P<0.001). This strong quantitative evidence moves beyond mere association, establishing energy poverty as a fundamental structural determinant that significantly compromises food security. The findings necessitate an integrated policy framework prioritizing substantial investment in clean, affordable household energy access as an essential strategy for sustainable reductions in food insecurity.
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    Adoption of Modern Agricultural Technologies in Urban Agriculture: A Case Study in Abiy-Adi town -Vegetable Growers
    (Mekelle University, 2025-10-23) Teame Gebreyosus
    Modern agricultural technology plays a vital role in enhancing farmers' productivity and promoting sustainable farming practices. This study investigates the determinants influencing the adoption of fertilizer and pesticide in urban agricultural farming. A total of 240 respondents were surveyed using both primary and secondary data sources. The collected data were analyzed through descriptive statistics and Econometric models. Specifically, a Logit model was employed to identify the determinants of adoption, while propensity score matching (PSM) was used to assess the impact of adoption on household income. The results reveal that age, gender, farming experience, attitude, perception of cost toward modern technology, extension support, use of organic manure, and scarcity of irrigation water are significant factors affecting adoption decisions. Among these, age, attitude, and use of organic manure were found to have a negative relationship with adoption. Moreover, the adoption of modern agricultural technologies has a significant positive impact on farmers' income. The findings indicate that the average treatment effect (ATE) of adoption on household income is 262,519 birr, while the average treatment effect on the treated (ATT) is 61,578 birr. The higher ATE compared to the ATT suggests that non-adopters could potentially gain even more income benefits if they adopted modern agricultural technologies. This implies that adopters may not yet be fully optimizing the use of fertilizer and pesticides, possibly due to limited experience, inadequate training, or resource constraints. In contrast, non-adopters have a higher untapped potential for income improvement once barriers to adoption are addressed. To bridge this gap, policy interventions should focus on strengthening agricultural extension and capacity-building programs to ensure effective and efficient use of modern technologies. Tailored training and demonstration programs should be introduced to improve farmers' technical knowledge and management practices. Additionally, enhancing access to affordable inputs through subsidies, credit schemes, or cooperative purchasing, along with improving irrigation infrastructure, can encourage wider adoption and help farmers maximize the income potential indicated by the ATE. These measures would contribute to more equitable and sustainable income growth among urban farmers,
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    The Impact of War Damage on Energy Poverty and Energy Choice: Empirical Studies in Woredas Axum and Laelay Machew
    (Mekelle University, 2025-11-25) Gomera Yohannes
    This study investigates the impact of conflict-induced destruction on household energy poverty and energy choice in the Tigray Central Zone, Ethiopia, following the 2020–2022 war. Using cross-sectional data from 384 households and employing both descriptive and econometric analyses, the research explores how conflictrelated shocks have reshaped energy access and consumption behavior. Descriptive findings reveal high levels of energy poverty, particularly among rural households, with a heavy dependence on traditional biomass fuels and limited access to modern energy sources. Econometric results from Ordinary Least Squares (OLS), Two-Stage Least Squares (2SLS), and robust IV regressions demonstrate that conflict-driven energy tool damage significantly exacerbates household energy poverty. Urban residence, by contrast, mitigates energy deprivation through improved infrastructure and access to diversified energy systems. Multinomial Logit (MNL) and Ordered Logit models further indicate that energy tool damage increases the likelihood of reverting to traditional fuels, reflecting adaptive but regressive coping strategies under infrastructure failure. Overall, the findings highlight that energy poverty in conflict-affected settings is shaped more by structural and infrastructural constraints than by individual socioeconomic characteristics such as income or education. The study concludes that post-conflict energy policy should prioritize restoring damaged energy assets, strengthening rural energy infrastructure, and promoting gender-sensitive clean energy interventions to foster equitable and sustainable energy recovery.
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    The Impact of Access to Microfinance Credit on Multidimensional Poverty Index (MPI) Reduction Among Female-Headed Households in Wukro Town, Eastern Zone, Tigray Region, Ethiopia
    (Mekelle University, 2025-11-25) Fasil Adane
    This study examines the impact of access to microfinance credit on multidimensional poverty (MPI) among female-headed households in Wukro Town, Tigray Region, Ethiopia. Employing a mixed-method approach that combines quantitative household surveys with qualitative interviews, the research investigates how microfinance influences income, education, health, and overall living standards. The findings indicate that microfinance significantly reduces multidimensional poverty by enabling women to start or expand small businesses, support children’s education, and access basic healthcare and food. However, microfinance alone does not fully address the deeper challenges in post-conflict settings; many households continue to face psychosocial stress, limited social inclusion, and unstable income due to market fluctuations. These results align with the multidimensional poverty frameworks of (Sen, 1999) and (Alkire, 2015), emphasizing the need to integrate financial services with social, psychological, and community support. The study concludes that while microfinance is a critical tool for economic empowerment, its long-term effectiveness in reducing MPI in conflict-affected areas requires complementary interventions such as mental health support, gender-sensitive programming, and broader post-conflict rehabilitation.
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    Determinant of Urban Households’ Food Insecurity: The Case of Mekelle City
    (Mekelle University, 2025-02-23) Getnet Ashagrie
    This study seeks to analyze food insecurity issues by assessing socio-economic factors that impact the food insecurity of households in urban areas of Mekelle City. The analysis was based on survey data gathered from 397 urban households selected using a simple random sampling procedure. Primary and secondary data were used. The data regarding household determinants were analyzed using descriptive statistics and a binary logit model. The survey result showed that about 27.71% and 72.29% of sample respondents were food insecure and secure, respectively. The empirical results estimated using the survey data to identify the determinants of food insecurity among urban households in the study area revealed mixed impressions. Among the variables considered, age of the household head, income of the household, house ownership, and household food expenditure had a statistically significant effect on food insecurity in the study area. This study adds to the literature by contextualizing urban food insecurity within Sen's Entitlement Framework and the Sustainable Livelihoods Framework in post-conflict areas. Most importantly, the study has delivered findings that call for targeted interventions on income diversification, affordable housing, and gender-responsive policies. This is followed by practical recommendations for policymakers, underscoring the need for context-specific approaches to urban food insecurity in conflict-affected areas.