Abstract:
This study set out to assess farmer’s decision to accept and adopt Carbon trade practices within the
existing socioeconomic and institutional arrangements. The study was conducted in Humbo woreda.
Two-stage sampling procedure was used to select 150 smallholder farmers from three Kebeles in the
Woreda. Primary data were gathered through interviews and group discussion using a semi-structured
questionnaire. Secondary from different literatures, publications and records of selected offices were
also used for the study. Simple descriptive statistics and econometric models (ordinal logit model and
the double hurdle model) were used for data analysis, aided by SPSS and STATA software. The results
showed that 26.67% of the farmers practiced tree planting/agro-forestry as the voluntary Clean
Development Mechanism practice; 32% of the farmers were not aware of the project; 19% were having
correct awareness and; 48% of the farmers were aware about the project but wrongly, showing the
existence of awareness of the project but they understood wrongly and hence might affect the
acceptance and subsequent adoption. In this regard, age and house hold size negatively influenced
house holds’ willingness to adopt Clean Development Mechanism while, land size, land tenure, farm
income, education level and availability of voluntary Clean Development Mechanism had
positive influence on the willingness to accept and adopt were found to influence the willingness to
accept the project. Therefore as the age of the house hold head increases the acceptance and adoption
of carbon trade decreases; this may be due to the inability of the farmer to engage actively in the
farming activities and due to the scarcity of land and the house hold size increment household heads
may not be willing to allot their land for the adoption of the Carbon trade at smallholder farmers level.
As a result, there is urgent need to incorporate the issue of climate change in the countries’ extension
system to enhance the farmer’s participation and decision making process in the adoption for
environmental issues such as Clean Development Mechanism. Through this, adoption of carbon trade
would be successful consequently increasing carbon sinks and increased smallholder farm income
hence poverty reduction and sustainable development.
