COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF ECONOMICS
THE EFFECT OF DEFORESTATION ON AGRICULTURAL
PRODUCTIVITY ON THE ETHIOPIAN ECONOMY
ESPECIALLY ON AGICULTURAL SECTOR
RESEARCH PROPOSAL SUBMITTED TO ECONOMICS
DEPARTMENT IN PARTIAL FULIFULLIMET OF THE
REQUIREMENTS FOR THE BA DEGREE IN ECONOMICS

By: Eyasu Fekadu & Tadesse Dires JAN: 2016

Advisor:Birku A(MSc) Bonga Ethiopia

I
 ABSTRACT
Ethiopian is one of most severely affected country in sub Saharan African country particularly by
deforestation which results in soil erosion loss of biodiversity and degradation of agricultural
land. The full implication of loss of forest resources as well as the root courses should be
recognized in order to conserve and manage the remaining vegetation cover of the country. The
main objective of this study is to assess the effect of deforestation on the agriculture sector of
Ethiopia. The data for the study will be collected from secondary data source .Environmental
impacts of deforestation which influence rural livelihood such as soil erosion. loss of biodiversity
(flora and fauna) and rainfall and water variability will among the major ones that affect
agricultural production in Ethiopia.Therefore, it will be suggested that among other things,
increasing the real income of the peasants, diversifying the rural economy, subsidizing basic
commercial farm inputs, providing affordable to fuel wood, incorporation of local
knowledge .resolving conflicts between users right and management responsibility through
introducing benefit sharing system and awaking the peasants continuously on issues related to
forest resources management and family planning must receive policy attention to reduce forest
destruction.

I
 ACRONMY

CSA = Central Statistical Authority

EFAP = Ethiopian Forest Acton Program

ETB = Ethiopian Birr

WB = World Bank

FAO = Food and Agricultural Organization

MoNRDEP = Ministry of Natural Resource Development Program

MoA = Ministry of Agriculture

CIA = Center for International Aid

FRA = Forest Resource Assessment

UNEP = United Nations Environmental program

CIFOR = Center for International Forestry Research

UNFPA = United Nations Forest Protection Agency

EREDPC = Ethiopian Rural Energy Development and Promotion Center

WBISPP = Woody Biomass Inventory and Strategic Planning Project

II
 Table of contents

Contents
ABSTRACT...........................................................................................................................I

ACRONMY..........................................................................................................................II

CHAPTER ONE: INTRODUCTION...................................................................................1

1.1. Background of the study...............................................................................................................1

1.2. Statement of the Problems...........................................................................................................2

1.3 Objectives of the study...................................................................................................................3

1.4. Significance of the study...............................................................................................................3

1.5 Scope of the study..........................................................................................................................4

1.6 Organizations of the study.............................................................................................................4

1.7 Limitations of the Study.................................................................................................................4

CHAPTER TWO: LITERATURE REVIEW.......................................................................5

2.1 Theoretical Reviews.............................................................................................................................5

2.1.1 Deforestation..............................................................................................................................5

2.1.2 Economic importance of forestry................................................................................................6

2.1.3 Causes of deforestation..............................................................................................................8

2.1.3.1 Direct causes of deforestation.................................................................................................9

2.1.3.2 Indirect causes of deforestation.............................................................................................10

2.2 Empirical reviews..............................................................................................................................11

III
 2.2.1 Other countries case.................................................................................................................11

2.2.2 The Ethiopian case....................................................................................................................12

CHAPTER THREE : METHODOLOGY OF THE STUDY............................................15

3.1 Method of Data Collection...........................................................................................................15

3.2 Method of Data Analysis..............................................................................................................15

3.3 Data source..................................................................................................................................15

3.4 Description of the study area.......................................................................................................15

CHAPTER FOUR:WORK PLAN AND BUDGET...........................................................16

4.1Budget Breakdown..............................................................................................................................16

4.2Work Plan...........................................................................................................................................17

Reference.............................................................................................................................18

IV
CHAPTER ONE: INTRODUCTION

1.1. Background of the study

Among developing countries, especially in Africa, Ethiopia is exceptionally rich in history, as

well as cultural and biological diversity. Ethiopia is a land of plenty with a long and noble
history giving rise to ethnic, linguistic and cultural diversity. It is the only African country never
to have been colonized. It has more than 80 unique rich ethnic, cultural and linguistic group’s.
And it is home two globally important biodiversity. However, this rich cultural and natural
heritage is threatened, especially in the form of hotspots deforestation (Girmay M. E., 2023).The
degree of deforestation is very acute in the northern and eastern part of the country. The only
remaining patches of Ethiopia forest are found in sparsely populated, in accessible and remote
highland of western, central and south central part of Ethiopia. (Derebe, 2023)

The high depreciation of forest resources happen because in most part of the country especially
in rural areas, fuel wood is the major sources of mainly for cooking purpose. Forest resources are
also basic inputs in house construction and for making furniture and equipment.(EFAP)Rate of
degradation and depletion of the countries forest resources base is accompanied by a variety of
other environmental problems such as the loss for vegetation cover that results in high rate of soil
erosion which was an adverse effect of agricultural productivity. In addition, as a result of
deforestation the rural poor are deprived materials, wood for household consumption and cash
crop harvest from the forest moreover extinction, salutation and flooding problem to national and
international aspect of economic life.(EFAP)

In Ethiopia forest resources base are disappearing as when the rate of exploitation is more than
the natural rate of replacement. Available sources indicate that Ethiopia was heavily forested
country around 16 percent of its area covered with closed forests in 1950’s. In early 1980’sthis
coverage dramatically decreased and only 2.7 percent of the forest remained (Sheng G. C.,
2023).Forest plays a vital part in the economic development of Ethiopia. It is known to have

1
considerable potential in increasing employment income, and production as well as foreign
exchange earnings. Therefore, in order to improve the economic use of forests, it is essential to
protect and properly magnate he forest resources (MOA).

1.2. Statement of the Problems

Mostly, economic development and natural resource base are highly interrelated. Natural
resource base is important in developing countries because their economies are highly dependent
on land and other natural resource. Ethiopia, like any other developing country is highly
dependent on her natural resource base. However, the inefficient and improper utilization of
these resources has greatly undermined the prospect of growth (Sarkar, 2023).

Deforestation is a treat to life worldwide it has an effect on global climate and causes the
extinction of thousands of species annually. Simple solution are not the answer as many factors
have to be thought of deforestations mainly occur in least economic development countries
(LEGC’s). Where, they need the many that the products of deforestation earn them. Long term
solution would have to be a thought offer the countries an economically, viable alternatives,
before the ecological loss increases (Sarkar S. (.-S., 2023).

There are many reasons that deforestation occurs. Commercial logging, ranching, and farming
are the main causes of deforestation. UNFPA said, in its 1990 report that population growth may
have been responsible for as much as 80pecent of the forest land cleared between 1971and 1986
to make room for agriculture , ranching, houses, road and (Ramphal .,1992,P.55).

One challenge Ethiopia faces in light of managing forest resources for multiple purposes. The
national energy is dominated by fuel wood, which is the main sources of energy to both urban
and rural areas, accounting for over 90 percent of the primary total energy supply. The gap
between demand and supply for fuel wood is increase with times, such annual wood supply
13.5million m3and annual consumption 33.9million m 3(UNDP, 1994).Deforestation and
environmental degradation had deep historical roots and profoundly influenced by the Ethiopian
government policies. Those, who are poor often, destroy their immediate in order to survive.
(Burka, 2023).All the above researches deal with the symptoms of not the real causes of
2
deforestation on economic growth in general, but not see the effect of deforestation on
agriculture. The researcher attempt to show the real causes and the effect of deforestation on
economy in particularly on agricultural sector. (Berisso T. (., 2020)

This study tries to discuss and answer the following basic question;

1. What is the trend of deforestation in Ethiopia?

2. What is the cause of deforestation in Ethiopia?
3. What are the effects of deforestation on the Ethiopian economy specifically on the
agricultural sector?
4. What should government do to combat deforestation?

1.3 Objectives of the study

1.3.1 General objective

The overall objective of this study is to show the effects of deforestation on agricultural
productivity on the Ethiopian economy especially agricultural sector and to assess the remedial
measures or ways to overcome this problem.

1.3.2 The specific objectives

The specific objectives of this study were:

 To identify the causes deforestation;

 To examine the trend analysis of deforestation in Ethiopia
 To indicate the necessary recommendation and suggestion to those problem.

1.4. Significance of the study

The outcome of the study will provide information to the government in policy formulation and
also to the agrarian societies in order to take care to forests. This study will serve as a base for
further investigation to be under taken in this area. In addition, the researcher’s suggestion will
help to take corrective actions for the problem.

3
1.5 Scope of the study

The study covers the most Ethiopian using major areas in the country as a source of data.
Extensive data (written) analysis on these areas will be made in order to show the effect of
deforestation on Ethiopian economy especially agricultural sector.

1.6 Organizations of the study

The paper will be organized by four chapters. The first chapter is an introductory an introductory
part it was include background of the study, statement of the problem, objective of the study,
significance of the study, scope of the study, organization the study, and limitation of the study,
chapter two deals with the literature review, chapter three contain methodology.. The last chapter
contains work and budget.

1.7 Limitations of the Study

In addition to financial and time limitations, the study will be constrained by the following limitations:

Lack of experience for the researcher and Lack of organized data due to the absence of
documentation and organized database system regarding impacts of deforestation on agriculture;

4
CHAPTER TWO: LITERATURE REVIEW
2.1 Theoretical Reviews

2.1.1 Deforestation

Deforestation is the process of removing the forest ecosystem by cutting the trees and changing
the shape of land to suit different uses. We live in a dynamic world, where the changes in the
stock of natural resources affect by the way of our life style. Although the economic activity of
the population is heavily dependent on the surrounding environment. (Wiki, 2023).

The definition of forest is still ambiguous. According to (AyÃ, 2020) forest is a minimum land
area of 0.05‐1 ha with tree crown cover more than 10‐30% and tree height of 2‐5m at maturity.
(Ritchie, 2023) defined a forest as “land with a tree crown cover (or equivalent stocking level) of
more than 10% and an area of more than 0.5 hectare; the trees should be able to reach a
minimum height of 5 meter at maturity in situ”. A recent Forest Resources Assessment. (Bahar,
2020) estimated the global forest cover at just over 4 billion hectares, which is 31% of total land
area of the world (Bahar, 2020).

The forest product sector is estimated to contribute 2 to 3 percent of international merchandise

trade. The annual turnover of round wood, sawn wood, panel’s pulp and paper exceeds US $ 200
billion. The value of non-wood forest products and the environmental services of forests are
difficult to estimate in economic terms but they are critical to the livelihoods off and estimated
600 million people in the world alone (Patnaik, 2023).

The outcome of action situations, which are of a particular interest in our analysis, can be
distinguished between structural outcome, which affects the existing context, including forest
management program and “poverty outcome” which directly affect the condition of the poor

5
landless households. These five criteria are ability to satisfy basic needs, income levels and
distribution, personal security of property (conflict management), social empowerment, and the
sustainability of resource bases. (Surya, 2020)

In an action situation actors make choice and follows strategies based on their action resources
the rule that define the action arena, and the attributes and expectation about the behavior of
other action involved. These choices create patterns of interaction which in turn produce income.
If these outcomes are not positive for some or all actors, they will try to change their strategy in
the action situations using their bargaining power which is shaped by their context. (Petursson,
2021)

2.1.2 Economic importance of forestry

More than seven Million hectares of forest were destroyed annually between 2005 and 2010 and
more than eight million hectares between 2005 and 2009 (FAO, 2009). Most of the deforestation
has taken place in less developed regions such as Africa and South America. This has been
attributed mainly to land conversion and agricultural expansion and is expected that with
business as usual deforestation will continue in the following years due to increases in global
population and associated demands for food and agricultural products. The opportunity cost of
conserving forest increases. Farmers, then, decide to switch from forest to agricultural
production or to selling timber. (Datta, 2024)

Human beings in order to full fill their day to day needs depend directly or indirectly on forests.
Forests are not the only source of timber rather they perform a wide range of social and
ecological functions. They are also valuable environmentally and improving services and helps
maintaining local, regional and global natural system. (McGain, 2020)

Developed and developing nations differ in the status of their forests due to deforestation, the
forest areas of many developed countries has established and in some cases has even been
increased through a forestation programs.In contrast, in developing countries have declined by
nearly half the rate of loss and is still increasing. (Estoque, 2022)

6
Forest based activities provide substantial employment opportunities in many rural region. These
forest based activities often require establishment costs are characterized as part time activities to
provide supplemental income. These activities are especially important for the poor as they have
access to fewer alternative. The most valuable economic product from tropical forest is wood
which accounts for about half of all forest related revenue. The main wood products are round
wood, pulp, pinch, poly wood, and paper. Tropical have woods, the major industrial timber
export of the tropics accounts just over 10 percent of the total international trade in timber
(Sasidharan, 2021)

Forest is the main source of many non-wood products as well. These include extra activities
(such as bark, dyes, fibers, gums, incense, latexes, oil, resins, shellac, tanning compounds and
waxes) ,parts of plants and animals for medicinal, ceremonial or decorative purposes, and food
(such as bush meat, flower, fruits, honey ,nuts, leaves, seeds and spices). (Ibid)

The recreational value of tropical forests has largely been under estimated so far. Ecotourism is
an emerging economic activity with tremendous potential to generate foreign exchange for
tropical countries. Local and urban dwellers also derive recreational benefits from visiting
tropical forest reserves, but their willingness to pay for their activity is generally lower than that
of international travelers. The mere existence of tropical forests constitutes a stream of benefits
to people, most of whom may never intend to visit a forest reserve. In several economic
valuation studies that have been conducted to quantify these benefits the existence value of
tropical forests constitute a significant percentage of the economic value (Lele, 2009).

Livelihood we mean the capability, asset and activities required for a means of living. And a
livelihood is said to be sustainable when it can cope with and recover from stresses, shocks and
maintain its capability and assets both now and in the future, without undermining the natural
resource base (centre for international forestry research (Lawry, 2015).Access to forest or tree
resources can also help rural household diversify their livelihood base and reducing their
exposure to the risk forest can thus form an important safety net for the very poor in time of
hardship (Senganimalunje, 2022) In addition, a forest serves an important means of rural
livelihood through providing inputs like fuel, medical and food products. Beside these they
7
diversify the farm household for they are characterized by easy access and required low skill and
capital to be exploited. Although richer rural households, especially the landless, usually depend
on the forest for large share of their overall livelihood input the fact in the developing countries
rural households shows that there is high level of dependency on forest resources’ for their
subsistence (CIFOR, 2005).

As a source of income commercial forest products activities have an important potential to help
poor households move out of poverty. Indeed it has been argued that where the poor do have
high level of reliance on forest products activities, thus likely to mean that they are facing
persistent poverty. (Dove, 2003) .Based on rigorous field work in Zimbabwe, Cavendish (2000)
makes a compelling case that environmental income can play a crucial role in the livelihood of
rural households, especially in the poorest. In his study the lowest quintal derived about 40% of
the total income from natural resources is relatively small, income from these sources may be of
vital important to people living close to the survival line, in particular, environmental income
may fill the gap in times of income shortage from other standard sources and act as safety net or
insurance during unpredictable economic shocks. If such a significant source of income is
neglected our understanding rural poverty will be partial and distorted including environmental
income while studying rural households can therefore, be helpful in enhancing our poverty
diagnosis by focusing on neglected source of livelihood. (Cavendish, 2000)

2.1.3 Causes of deforestation

In developing countries, human caused deforestation and degradation of forest habitat is

primarily due to expansion of agriculture, slash and burn practices, urban sprawl, illegal logging,
over harvest of fuel wood, mining and petroleum exploitation (Wikipedia).

Various studies have been made regarding deforestation, and forestry in Ethiopia. Brown (1978)
and FAO (1986) identified the increasing pressure of human and livestock population, unlimited
expansion of cultivation and development of urban centers instrumental in deforestation of the
country.

8
Agriculture is one of the primary drivers of deforestation — both in modern times and in ancient
times. The vast old-growth forests that once covered much of the world have largely been cut
and burned down because of agriculture. Even when such agricultural-land is reclaimed by
nature it generally lacks the great biodiversity that was found there previously, being replaced
largely by fast-growing plants and ‘weeds’ that favour the depleted soil. Subsistence-farming
accounts for 48% of deforestation, and commercial agriculture for a further 32% of
deforestation, according to UN framework convention on climatic change, 2012.

In general the cause of deforestation can be categorized as direct cause and indirect cause.

2.1.3.1 Direct causes of deforestation

The main direct causes of deforestation in the agricultural expansion overgrazing, fuel wood
gathering, and commercial goggling forest fire. (DENDIR, 2021)

In a forest resource assessment of Ethiopia, Reusing found that within 17 years(1973–1990)

high-forest cover decreased from 54,410 to 45,055 km2 or from 4.75%- 3.93% of the land area.
He calculated a deforestation rate of 163,000 ha per year, this means that continued deforestation
at the same rate would leave about 18,975 of the 45,055 km2 in (Tarekegn, 2020). The (Ngongo
Y. D., 2023) estimated a deforestation rate of 141,000 ha per year. (Ngongo, 2023).

The conversion of forest land into agricultural and to meet increasing demand for food and fiber
in many developing countries is significant. It is estimated that over 11 million hectares of
tropical lands are cleared every year in Latin America, Africa, and pacific Island. (Ayoo, 2022)

Fuel woods the most important forest product in Ethiopia, the annual demand for fuel wood for
example is close to twenty times the demand for other forest products combined. Beside, fuel
wood is the countries single largest source of energy supply. The national energy balance for
Ethiopia for 1990/91 indicates that traditional biomass fuel (wood, crop residence and charcoal)
are the most important source for final energy consumption. (FISSEHA, 2016)

9
A to the Malthusian theory of population unrestrained population increase is seen as the major
crises to human being today because it is regarded as the principal cause of poverty, low level of
living, ill health, environmental degradation and other social and economic problems. Rapid
population growth like 2.5 percent to 3 percent contributes to environmental degradation in the
form of forest encroachment, deforestation, fuel-wood depletion, soil erosion, air pollution.
Population was increased on average of 1.6 percent; the average available of fuel-wood was
decreased by 0.295 percent during 1985-2000. (Murphy, 2018). Over grazing is one of the direct
causes of deforestation. Livestock number in Ethiopia is large and varies. (CSA, 1991/92)More
than seven million hectares of forest were destroyed annually between 2000 and 2005 and more
than eight million hectares between 1990 and 2000. (FAO, 2009)

2.1.3.2 Indirect causes of deforestation

In Africa deforestation is highly tied to demographic growth. Investigation indicate that

population change is the most significant factor that explains changes in forest size. Moreover,
population pressure is expected to be associated with higher level of tropical forest clearing
indirectly through pressure at agricultural “frontier” and though demand for food, fuel wood and
other consumption goods. (Jepma, 2014).

Economic interest of the people in developing countries is that of survival. Subsistence economy
predominate rural and urban dwellers at large. Rural life being the mode in less developed
countries, the major environmental issues has to be related to the rural economy. (Omer,
2024)Poverty has a significant role in affecting the quality of environmental resources. In
Ethiopia rural population accounts for about 86 percent of the total population, and there is high
dependence on the exploitation of natural resources. (Wassie, 2020)

The unsustainable rate of deforestation of the world’s forest are to large extent linked to inherent
market failures in the free market approach to forest use and managements, and so policy, failure
moreover in adequate land policy allows forests to be related as open access resource, often
resulting in degradation of land loss of forest. (Lapola, 2023)

10
The population of Ethiopia is growing at rare of 3.194 (2011 est.) percent per annum. The
current population is estimated at 90,873,739 (July 2011est.)Million has doubled with in the last
30 years. As the population grows, land available for agriculture shrinks. This further
exacerbated by loss of farm land due to land degradation. About 10 to 20 thousand hectares of
agricultural land are estimated to be out of use every year in the country alone (Govoni, 2021).

2.2 Empirical reviews

2.2.1 Other countries case

A recent Forest Resources Assessment (FAO, 2010) estimated the global forest cover at just over
4 billion hectares, which is 31% which corresponds to an average of 0.6 ha per capita. The five
most forest rich countries of total land area of the world account for more than half of the total
forest area. (Ma, 2023)

According to FAO, Nigeria the world’s highest deforestation rate of primary forests. It has lost
more than half of its primary forest in the five years causes cited are logging subsistence
agriculture and the collection of fuel wood.

In Brazil the rate of deforestation is largely driven by commodity prices. Recent development of
a new variety of soy bean has led to the displacement of beef ranches and farms of other crops
which in turn move further into the forest certain areas such as the Atlantic rain forest have been
diminished to less than 10 percent of their original size and the Amazon rainforest is awaiting the
same fate at 600 fire daily. Although much conservation work has been done, few national parks
or reserves are efficiently enforced. In 2008, Brazil’s government has announced are cored rate
of deforestation in the Amazon (Benites, 2023).

Bush fires are another threat to forests and woodlands, causing enormous destruction to both
flora and fauna. The total global area burned annually between 2002 and 2003 was in the range
of 300 to 400 million ha, and about half of this was in Africa Eastern Africa has rather limited
forest and woodland cover amounting to approximately 13 percent (Rodriguez Franco, 2023).
Forest and woodland cover varies considerably. Kenya is the most forested country with about

11
30 per cent of its land area under forest, followed by Uganda with 21 per cent. Djibouti has the
least forest cover with about 6000 ha or only 0.3 percent of the land area under forest (Ali,
2023). It is estimated that the change in forest cover in Eastern Africa is 0.51 per cent per year.
There is, however, considerable variation between countries, with Burundi experiencing a
decline of 9 per cent compared with 2 per cent in Uganda (Costlow, 2024).

Prior to the arrival of European to America about one half of the united states land was forests,
about 4 million square kilometers (1 billion acres) in 1600 for the next 300 years land was
cleared mostly for agriculture at a rate that matched the rate of population growth. From every
person added to the population, one to two hectares of land was cultivated. This trend continued
until the 1920s when the amount of crop land stabilized in spite of continued population growth
abandoned farm land reverted to forest the amount of forest land increased from 1952 reaching a
peak in 1963 of 3,080,000 square kilometer (762 million acres) since 1963 there has been a
steady decrease of forest with the exception of some gains from 1997. Gains in forest have
resulted from conversion from crop land and pastures at a higher rate than less than less of forest
to development.

Because urban development is expected to continue an estimated 93,000 square kilometer(23

million acres) of forest land is projected to be lost by 2050, 93 percent reduction from 1997 other
qualitative issues have been identified such as the continued loss of old-growth forests, the
increased fragmentation of forest lands and the increased urbanization of forest land (Wikipedia).

There is a range of estimate of the number of forest dependent poor globally. According to the
World Bank (2004) forest resources directly contribute to the livelihood 90 percent of the 1.2
billion people living in extreme poverty and indirectly support the natural environment that
nourishes agriculture and the food supplies of nearly half the population of the developing world.
In Nepal 18 million people are directly dependent on forest resources and out of that 8.5 million
living on public forest (Shrestha, 2023).

The forest sector in Africa plays an important role in the livelihoods of many communities and in
the economic development of many countries. This is particularly so in Western, Central and

12
Eastern Africa Where there is considerable cover. Africa has a high per capita forest cover at 0.8
ha per person compared to 0.6 ha globally. (Pablo-Romero, 2023)

2.2.2 The Ethiopian case

Ethiopia makes up the greater part of the East African ‘Horn of Africa’. At latitudes of 4 to
15°N, Ethiopia’s climate is typically tropical in the south‐eastern and north‐eastern lowland
regions, but much cooler in the large central highland regions of the country. Mean annual
temperatures are around 15‐20°C in these high altitude regions, whilst 25‐30°C in the lowlands
Mean annual temperature has increased by 1.3°C between (Kalbarczyk, 2018), an average rate of
0.28°C per decade. The increase in temperature in Ethiopia has been most rapid ata rate of
0.32°C per decade (McSweeneyl et al., 2006).

There is lack of statistical bases on which to establish rate of deforestation in Ethiopia. A figure
of equivalent of 150,000 to 200,000 hectare a year loss of closed natural forest has been quoted
in several recent reports.

The estimated loss of between 150,000 to 200,000 hectare equivalents to about 6 percent of the
remaining natural forest at these rates the natural forests will be gone in 15 to 20 years. Clearing
of forest and is driven by the demand for cropping grazing these demands coupled with that for
fuel wood, are responsible for the loss of tree and bush vegetation in forests, wood lands and
bush lands. (Mengist, 2023).The level of deforestation in Ethiopia is among the highest known of
45,390 square kilometer forest that we have an estimated 8 percent is being lost annually. (WB,
2000)

“The loss of forest resources was especially severed in the Ethiopian highlands. The highlands
are the part of the lost mountain mass if in the heart of the country which lies above 1,500 meter.
They cover 44 percent of Ethiopia’s land area, accommodate 22 percent of the population and
contain 95 percent of the cultivated land, as well as 75 percent of these areas having slopes in
excess of 30 percent. As much as 94% of Ethiopian energy consumption is derived from the use
of wood fuel, charcoal and the expedient needs of poor farmers for land and grazing further

13
undermines prudent conservation of trees. By 2000 forest coverage had collapsed to just 3%
which is the major cause of soil erosion and land degradation. (Becker, 2023)

Ethiopia heavily depends on forest products for various domestic, industrial and cultural
purposes. Over 90 percent of the population is dependent on biomass fuel as its major source of
energy for cooking, heating and even lighting. Wood fuel accounts for about 95 percent of the
total biomass fuel (Wola, 2023) Presently this is met primarily by overexploiting the natural
forests and woodlands. The current domestic wood supply which is 14.4 million m3 satisfies
only 30 percent of the total national demand for forest products. There is a big gap between the
demand and domestic supply for various forest products.In order to supplement the limited
supply of wood products from domestic sources, the country is importing lumber, plywood, and
panel products from abroad.

The enormous reduction of forest cover of the country led to a marked increase in the grass and
shrub vegetation. The transformation is most advanced in the north and east of the country where
the population has been concentrated for many centuries. It is only in parts of the south and the
south west that many forest blocks remain, although pressure of agricultural development and
settlement are rapidly diminishing these. The main forces behind deforestation are population
growth and economic pressure linked to increased demand for crops, pasture and timber.
(Aylwin, 2024).

In addition to variations in different parts of the country, the Ethiopian climate is also
characterized by a history of climate extremes, such as drought and flood, and increasing and
decreasing trends in temperature and precipitation, respectively. The history of climate extremes,
especially drought, is not a new phenomenon in Ethiopia. Recorded history of drought in
Ethiopia dates back to 250 BC, and since then droughts have occurred in different parts of the
country at different times (Guo, 2023). Even though there has been a long history of drought,
studies show that the frequency of drought has increased over the past few decades, especially in
the lowlands (Beunen).

14
Agriculture is the dominant sector of the Ethiopian economy, with 85 percent of the population
living in rural areas. Agriculture provides about 52 percent of the country's gross domestic
product, 80 percent of its employment, and 90 percent of its export earnings (Seyoum, 2024).
Ethiopia's economy is largely dominated by subsistence agriculture, land crop and livestock
farming is the principal practices. Mixed farming dominates the highlands, with crop and
livestock farming practiced in the same management unit. The production system is mainly" rain
fed, subsistence based, and smallholder "oriented. Food insecurity and famine in Ethiopia is the
result of eradicate and low rain fall. (Locci, 2023)

CHAPTER THREE : METHODOLOGY OF THE STUDY

3.1 Method of Data Collection

The study will be conducted mainly by using secondary data sources or exploring existing
literature related to deforestation and the consequence of deforestation and its effect on the
Ethiopian economy especially on the agricultural sector.

3.2 Method of Data Analysis

The lion’s share of analysis goes to qualitative (non-numerical) method but also quantitative
(numerical) analysis will be made in relation to the qualitative ones. Simple analytical tools such
as graphs, percentages, tables, averages and descriptive method of data analysis will be used in
the study.

3.3 Data source

The study will be used secondary data sources such as written documents, data from different
organizations for instance, FAO, CIFOR, MOA, CSA, and so on. In addition, related researches
will be done on deforestation and internet will uses as a source for this study.

15
 3.4 Description of the study area

The study area is focused on Ethiopian. Ethiopia is located in the horn of Africa from 3 N 0-15N0
and 48E and bordered on the north northeast by Eritrea on the east by Djibouti and Somalia on
the south by Kenya on the North West by Sudan and on the southwest by south Sudan.

The coverage of our country is 1,127,177 kilometer square, the climate of Ethiopia in the tropical
zone mining between the equatorial and the tropical of cancer. According to the elevation it has
three different climate zone, kola, and wainadega and degas similar to tropical zone, sub-
tropical zone and cool zone respectively.

CHAPTER FOUR:WORK PLAN AND BUDGET

4.1Budget Breakdown

This study will not be undertaking if budget is not allowed for the researcher from the concerned
authority. Because, each and every activities in the study require funds. The funds required for
this specific study are stated in the following financial breakdown

(budget schedule).

No I t e m Quantity M e a s u r e m e n t u n i t

U n i t Unit price Total birr C e n t

1 P a p e r 2 5 0 2 5 0 0 . 5 0 1 2 5
2 P e n 1 0 1 0 6 . 0 0 6 0 0 0
3 R u l e r 1 1 5 5 0 0

4 F l a s h d i s k 4 G B 1 1 8 0 1 8 0 0 0

16
5 Total material cost 3 0 0 0

6 Writing and Printing cost 50 page 5 0 5 2 5 0 0 0

7 Transportation cost 2 0 0 0 0
8 Miscellaneous expense 4 0 0 0 0
T o t a l 1 5 2 0 0

4.2Work Plan

The study will be carried out after the title is submitted and approved by Bonga University,
College of Business and Economics, Department of Economics. The researcher will conduct the
study as per the following time schedule.

S e t O c t N o v Dec J a n F e b M a r c h A p r
No Activities
Title selection X
1

2 Study area X
Literature X
3
Review
4 Data collection X
5 Data entry X
6 Data analysis X
First draft writing X
7

8 Presentation X

Reference

17
. Ecological determinants in plant community structure across dry afromontane forest patches of
Northwestern Ethiopia. BMC Ecology and Evolution, 2. 6. (n.d.).

Ali, S. H.-K. (2023). Adaptive Governance to Manage Human Mobility and Natural Resource Stress.
Cambridge University Press. Ali, S. H., Clifford, M., Kniveton, D., Zickgraf, C., & Ayeb-Karlsson, S.
(2023).

AyÃ, F. O. (2020). "An analytical assessment of forest cover changes over the last 30 years in the semi-
deciduous forest zone of Togo." Journal of Horticulture and Forestry . AyÃ, Fifonsi, Oliver GARDI,
Kossi ADJONOU, Atsu K. Dogbeda HLOVOR, Juergen BLASER, and Kouami KOKOU. .

Aylwin, J. A. (2024). Cristián Chiguay, and Carolina Huenucoy. Conservation in Chilean Patagonia:
Assessing the State of Knowledge, Opportunities, and Challenges, 19, 411. Aylwin, J., Arce, L.,
Guerra, F., Núnez, D., Álvarez, R., Mansilla, P., ... & Caro, L. (2024).

Ayoo, C. (. (2022). t and Sustainable Development, 21(3), 285-311.. Economic determinants of

deforestation in developing countries. International Journal of Environmen. Ayoo, C. (2022).

Bahar, N. H. (2020). . "Meeting the food security challenge for nine billion people in 2050: What impact
on forests." Glob. Environ. Chang 62 (2020): 102056. Bahar, Nur HA, et al.

Becker, S. a. (2023). " Population and Environment 45, no. 3 (2023): 20."Population and food systems:
what does the future hold? Becker, Stan, and Jessica Fanzo. .

Benites, G. V. (2023). The criminalization of artisanal and small-scale mining in Colombia and Peru." The
Extractive Industries and Society 13 (2023): 101105. Benites, Gisselle Vila. "Natures of concern:.

Berisso, T. (2023). "Comparative Study of Villagization under Two Regimes in Ethiopia: Case Study of
Guji-Oromo and Mao-Kommo Areas." Journal of Ethiopian Studies 54.1 (2021): 95-116.
"Comparative Study of Villagization under Two Regimes in Ethiopia: Case Study of Guji-Oromo
and Mao-Kommo Areas." Journal of Ethiopian Studies 54.1 (2021): 95-116.

Beunen, R. K.-K. (n.d.). "Part I Introduction 1 The Search for Evolutionary Approaches to Governance........
3.". Beunen, Raoul, Kristof Van Assche, Martijn Duineveld, Anneke Smit, Gert Verschraegen,
Nicolas Hayoz, Anna-Katharina Homidge et al.

Burka, B. R. (2023). Dynamics of pastoral conflicts in eastern Rift Valley of Ethiopia: Contested
boundaries, state projects and small arms. Pastoralism, 13(1), p.5. Dynamics of pastoral conflicts
in eastern Rift Valley of Ethiopia: Contested boundaries, state projects and small arms.
Pastoralism, 13(1), p.5.

Costlow, L. H. (2024). How and where global food supplies fall short of healthy diets: Past trends and
future projections, 1961-2020 and 2010-2050. arXiv preprint arXiv:2401.01080. Costlow, L.,
Herforth, A., Sulser, T. B., Cenacchi, N., & Masters, W. A. (2024.

18
Datta, P. a. (2024). "Assessing the role of agriculture-forestry-livestock nexus in improving farmers' food
security in South Asia: A systematic literature review." Agricultural Systems 213 (2024): 103807.
Datta, Pritha, and Bhagirath Behera.

DENDIR, T. T. (2021). STATUS AND BENEFITS OF YARECH NATURAL FOREST AND EUCALYPTUS
PLANTATION, AND LOCAL COMMUNITY PERCEPTION ON THEIR MANAGEMENT: THE CASE OF
CHEHA WOREDA GURAGE ZONE, SNNPR, ETHIOPIA. DENDIR, TIZAZU TIGSTU.

Derebe, B. Y. (2023). "Composition, Relative Abundance, and Diversity of Medium and Large Mammals in
Tirba Lake Awi Zone, Ethiopia." Anthropocene Science (2023): 1-10. Derebe, Binega, Yonas
Derebe, and Bahiru Gedamu.

estimated the global forest cover at just over 4 billion hectares, w. i. (2023). estimated the global forest
cover at just over 4 billion hectares, which is 31% of total land area of the world. .

Estoque, R. C. (2022). Spatiotemporal pattern of global forest change over the past 60 years and the
forest transition theory. Environmental Research Letters, 17(8. Estoque, R. C., Dasgupta, R.,
Winkler, K., Avitabile, V., Johnson, B. A., Myint, S. W., ... & Lasco, R. D. (2022).

FISSEHA, G. (. (2016). WOODFUEL CONSUMPTION IN RURAL AND PERI-URBAN AREAS OF AGARFA

DISTRICT, BALE ZONE, SOUTH EASTERN ETHIOPIA (Doctoral dissertation, HU). FISSEHA, G. (2016).

Girmay, M. E. (2023). . "exploring the Past and the Present: examining Preservation, Management and
resistance practices in the Simien Mountains national Park, ethiopia." Ethiopian Renaissance
Journal of Social Sciences and. Girmay, Marshet, Endalkachew Teshome, and Dawit Yoseph.

Govoni, C. C. (2021). Global assessment of natural resources for chicken production. Advances in Water
Resources, 154, 103987. Govoni, C., Chiarelli, D. D., Luciano, A., Ottoboni, M., Perpelek, S. N.,
Pinotti, L., & Rulli, M. C. (2021).

Guo, D. S. (2023). How does wildfire and climate variability affect streamflow in forested catchments? A
regional study in eastern Australia. Journal of Hydrology, 625, 129979. Guo, D., Saft, M., Hou, X.,
Webb, J. A., Hairsine, P. B., & Western, A. W. (2023).

Jepma, C. J. (2014). . Tropical deforestation: a socio-economic approach. Routledge. Jepma, C. J. (2014).

Kalbarczyk, R. K. (2018). Assessment of air thermal conditions in the lowland part of south-western
Poland for agriculture development purposes. Atmosphere, 9(6), 215. Kalbarczyk, R., Kalbarczyk,
E., Ziemiańska, M., & Raszka, B. (2018).

Lapola, D. P.-J. (2023). The drivers and impacts of Amazon forest degradation. Science, 379(6630),
p.eabp8622. Lapola, D.M., Pinho, P., Barlow, J., Aragão, L.E., Berenguer, E., Carmenta, R., Liddy,
H.M., Seixas, H., Silva, C.V., Silva-Junior, C.H. and Alencar, A.A., 2023.

19
Lawry, S. M. (2015). Strengthening the resiliency of dryland forest-based livelihoods in Ethiopia and
South Sudan: A review of literature on the interaction between dryland forests, livelihoods and
forest governance. Lawry, S., McLain, R., & Kassa, H. (2015).

Legese, K. a. (2023). "Species diversity, abundance and habitat association of small mammals in Wenchi
montane forests, central Ethiopia." Authorea Preprints (2023).

Lele, S. (2009). "Watershed services of tropical forests: from hydrology to economic valuation to
integrated analysis." Current Opinion in Environmental Sustainability 1.2 (2009): 148-155. Lele,
Sharachchandra.

Locci, E. (. (2023). Climate Diplomacy International and National Responses. Locci, E. (2023).

Ma, J. L. (2023). Global forest fragmentation change from 2000 to 2020. Nature Communications, 14(1),
3752. Ma, J., Li, J., Wu, W., & Liu, J. (2023.

McGain, F. M. (2020). . Environmental sustainability in anaesthesia and critical care. British Journal of
Anaesthesia, 125(5), 680-692. McGain, F., Muret, J., Lawson, C., & Sherman, J. D. (2020.

Mengist, W. a. (2023). "Forest Policy of Ethiopia from 1990 to 2020: An Assessment of Contemporary
Forest Management Approach and Its Impact on Local Livelihood." Green and Low-Carbon
Economy (2023). Mengist, Wondimagegn, and Asaye Asfaw. .

Murphy, D. ". (2018). , and Peer Networks in Western Kenya.""Three Essays on Agriculture, the
Environmen. Murphy, David.

Ngongo, Y. D. (2023). Land Cover Change and Food Security in Central Sumba: Challenges and
Opportunities in the Decentralization Era in Indonesia. Land, 12(. Ngongo, Y., DeRosari, B.,
Basuki, T., Njurumana, G. N., Nugraha, Y., Harianja, A. H., ... & Nugroho, H. Y. S. H. (2023).

Omer, M. A. (2024). . Climate variability and livelihood in Somaliland: a review of the impacts, gaps, and
ways forward. Cogent Social Sciences, 10(1), 2299108. Omer, M. A. (2024).

Pablo-Romero, M. P.-B.-P. (2023). "Is deforestation needed for growth? Testing the EKC hypothesis for
Latin America." Forest Policy and Economics 148 (2023): 102915. Pablo-Romero, María P.,
Antonio Sánchez-Braza, and Jesús Gil-Pérez.

Patnaik, C. P. (2023). "INTER-LINKAGE BETWEEN THE ECOSYSTEM AND ECONOMIC EMPOWERMENT: AN

ANALYSIS.". Patnaik, Chintamani Prasad, Asoke Howlader, and Sidhartha Sankar Laha.

Petursson, J. G. (2021). . Co-management of protected areas: a governance system analysis of

vatnajökull national park, Iceland. Land, 10(7), 681. Petursson, J. G., & Kristofersson, D. M.
(2021).

Ritchie, H. &. (2023). . Deforestation and forest loss. Our world in data. Ritchie, H., & Roser, M. (2023).

20
Rodriguez Franco, C. a. (2023). "The evolution of the dialogue and perspectives on sustainable forest
management with special emphasis on the United States of America." Journal of Sustainable
Forestry 42, no. 8 (2023): 747-791. Rodriguez Franco, Carlos, and Jennifer Conje. .

Sarkar, S. (.-S. (2023). : Collected Writings of Saral Sarkar, Volume 2 (Vol. 2). BoD–Books on Demand.
Sarkar, S. (2023). Eco-Socialism or" Green" Capitalism?

Sasidharan, S. (. (2021). Teak plantations and wood production. In The Teak Genome (pp. 13-25). Cham:
Springer International Publishing. Sasidharan, S. (2021).

Senganimalunje, T. C. (2022). "Exploring the Role of Forests as Natural Assets in Rural Livelihoods and
Coping Strategies Against Risks and Shocks in Dedza east, Malawi." Journal of Sustainable
Forestry 41.6 (2022): 503-525. Senganimalunje, T. C., P. W. Chirwa, and F. D. Babalola.

Seyoum, B. (. (2024). Lessons from Successful Developing Countries. In State Fragility, Business, and
Economic Performance: An Ethiopian Perspective (pp. 403-419). Cham: Springer International
Publishing. Seyoum, B. (2024).

Sharma, U. C. (2023). . "Physiography and resources." Soils in the Hindu Kush Himalayas: Management
for Agricultural Land Use. Cham: Springer International Publishing, 2023. 59-93. "Physiography
and resources." Soils in the Hindu Kush Himalayas: Management for Agricultural Land Use.
Cham: Springer International Publishing, 2023. 59-93.

Sheng, G. C. (2023). Transforming Borneo: From Land Exploitation to Sustainable Development. ISEAS-
Yusof Ishak Institute, 2023. Transforming Borneo: From Land Exploitation to Sustainable
Development. ISEAS-Yusof Ishak Institute, 2023.

Shrestha, B. (2023). "Trees Outside Forests of Kathmandu Valley." PhD diss., Institute of Science &
Technology, 2023. Shrestha, Babita. .

Surya, B. e. (2020). Management of slum-based urban farming and economic empowerment of the
community of Makassar City, South Sulawesi, Indonesia." Sustainability 12.18 (2020): 7324.
Surya, Batara, et al. .

Tarekegn, A. (. (2020). SPATIOTEMPORAL PATTERNS OF FOREST CONDITIONS AND ITS DRIVERS IN

WOGERA WOREDA, AMHARA REGION, ETHIOPIA (Doctoral dissertation, uog). Tarekegn, A.
(2020).

These activities are especially important for the poor as they have access to fewer alternatives (FAO, 2.
(2003). These activities are especially important for the poor as they have access to fewer
alternatives. FAO, 2003).

Wassie, S. B. (2020). . Natural resource degradation tendencies in nvironmental systems research, 9(1),
1-29. Wassie, S. B. (2020).

21
Wiki, J. M. (2023). . Estimating quality of life: A spatial microsimulation model of well-being in Aotearoa
New Zealand. Social Science & Medicine, 330, 116054. Wiki, J., Marek, L., Sibley, C., & Exeter, D.
(2023).

Wola, A. W. (2023). Review on: Suitable Forest Management Innovations for Enhancing Forest
Productivity without Compromising Growing Stock and Subsidiary Ecosystem Services. Wola, A.
W., & Maru, K. (2023).

Yinebeb, M. L. ( (2023). . Ecological determinants in plant community structure across dry afromontane
forest patches of Northwestern Ethiopia. BMC Ecology and Evolution, 23(1), 68. , M., Lulekal, E.,
& Bekele, T. .

22