ABSTRACT
This chapter derives insights from the process of conservation adoption at multiple levels. A more balanced picture provide basis for more effective and efficient policies that focus on productivity growth and sustainable agriculture. The chapter develops a multi-level model to understand the important plot-level, household-level and higher-level factors affecting the decision to Terrace and to use manure and Fertilizer. It focuses on one particular household/plot-level characteristic, namely ownership changes, for understanding the dynamics of Terrace adoption at the household and plot level. A dynamic analysis of Terrace construction involves a duration' or transition' or survival' analysis. Larger households and households with larger share of young and old members have a smaller supply of Labour and are expected to invest less, for instance because of Labour market imperfections. The highest education level of any of the members of household is included as the knowledge and skill of the household may affect the awareness and profitability of soil and water conservation investment.
