This thesis is an economic impact evaluation of the Prosperity Through Innovation (PTI) project in Zambia. The PTI program provides discount equipment vouchers for the purchase of micro-irrigation equipment. The project aims to develop supply chains of micro-irrigation equipment and increase household livelihoods through its use. The PTI project is a collaboration of two international development organizations, Mennonite Economic Development Associates, (MEDA) and International Development Enterprises (IDE). The two organizations collaborate in order to promote the expansion of irrigation technology supply chains and provide information and training for its use as well.
The objectives of this study were to evaluate the factors affecting voucher redemption and effects of the project on livelihoods. The data for this study were collected in August 2009 in two of the project sites, Kabwe and Kafue. Both in the design of the study and the statistical methods used to evaluate the data, tests for self-selection bias were used. The Heckman two-stage procedure was used to account for the non-random assignment of program participants.
The results of the analysis showed that age of the household head, agricultural knowledge, and the presence of friends or neighbors who already used micro-irrigation equipment were significant factors affecting voucher redemption. All three factors exhibited a positive influence on voucher redemption. Results from the Heckman two-stage estimation indicated no evidence of self-selection bias.
For the purpose of this thesis, livelihood impacts were measured by the change in household assets between the beginning of the project and the time of the survey. Analysis showed the adoption of a treadle pump had a positive impact on household assets. The change in household assets over the study time period was on average 61,028 kwacha greater in households that adopted the pump compared to those that did not. Results for the impact of adoption of a drip irrigation kit showed a negative impact on household asset change. This, however, could be a result of the short time frame of the study and the longer learning curve required for effective use of drip equipment compared to the pump.