The Impact of Ethiopia’s Road Investment Program on Economic Development and Land Use : Evidence from Satellite Data

This paper studies the impacts of the large-scale Road Sector Development Program in Ethiopia between 1997 and 2016 on local economic activity and land cover (urbanization and cropland). It exploits spatial and temporal variation in road upgrades a...

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Main Authors: Alder, Simon, Croke, Kevin, Duhaut, Alice, Marty, Robert, Vaisey, Ariana
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2022
Subjects:
Online Access:http://documents.worldbank.org/curated/en/099332404062230683/IDU073a7158605532046490b712098aed9008539
http://hdl.handle.net/10986/37280
id okr-10986-37280
recordtype oai_dc
spelling okr-10986-372802022-04-09T05:10:38Z The Impact of Ethiopia’s Road Investment Program on Economic Development and Land Use : Evidence from Satellite Data Alder, Simon Croke, Kevin Duhaut, Alice Marty, Robert Vaisey, Ariana ECONOMIC IMPACT SATELLITE DATA ROAD USE SATELLITE DATA ROAD SECTOR DEVELOPMENT PROGRAM ECONOMIC IMPACT OF ROADS LOCAL ECONOMIC DEVELOPMENT CROPLAND REDUCTION INFRASTRUCTURE PLANNING LAND USE PLANNING This paper studies the impacts of the large-scale Road Sector Development Program in Ethiopia between 1997 and 2016 on local economic activity and land cover (urbanization and cropland). It exploits spatial and temporal variation in road upgrades across Ethiopia, together with high-resolution panel data derived from satellite imagery. The findings show that road upgrades contributed to increases in local economic activity, as proxied by nighttime lights and urban land area. However, there is significant heterogeneity in the results across baseline levels of economic activity. Specifically, gains from road upgrades are concentrated in areas with moderate-to-high initial levels of economic activity. By contrast, there was little, or even negative, growth in areas with low levels of initial economic activity. Finally, the findings show that road upgrades contributed to a reduction in cropland in areas with medium-to-high baseline nighttime lights. The results suggest that Ethiopia's ambitious road infrastructure development program overall increased local economic activity and urbanization, but that it also had important distributional implications that need to be taken into account when planning such infrastructure programs. 2022-04-08T16:39:43Z 2022-04-08T16:39:43Z 2022-04 Working Paper http://documents.worldbank.org/curated/en/099332404062230683/IDU073a7158605532046490b712098aed9008539 http://hdl.handle.net/10986/37280 English Policy Research Working Paper;10000 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Policy Research Working Paper Publications & Research Ethiopia
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ECONOMIC IMPACT SATELLITE DATA
ROAD USE SATELLITE DATA
ROAD SECTOR DEVELOPMENT PROGRAM
ECONOMIC IMPACT OF ROADS
LOCAL ECONOMIC DEVELOPMENT
CROPLAND REDUCTION
INFRASTRUCTURE PLANNING
LAND USE PLANNING
spellingShingle ECONOMIC IMPACT SATELLITE DATA
ROAD USE SATELLITE DATA
ROAD SECTOR DEVELOPMENT PROGRAM
ECONOMIC IMPACT OF ROADS
LOCAL ECONOMIC DEVELOPMENT
CROPLAND REDUCTION
INFRASTRUCTURE PLANNING
LAND USE PLANNING
Alder, Simon
Croke, Kevin
Duhaut, Alice
Marty, Robert
Vaisey, Ariana
The Impact of Ethiopia’s Road Investment Program on Economic Development and Land Use : Evidence from Satellite Data
geographic_facet Ethiopia
relation Policy Research Working Paper;10000
description This paper studies the impacts of the large-scale Road Sector Development Program in Ethiopia between 1997 and 2016 on local economic activity and land cover (urbanization and cropland). It exploits spatial and temporal variation in road upgrades across Ethiopia, together with high-resolution panel data derived from satellite imagery. The findings show that road upgrades contributed to increases in local economic activity, as proxied by nighttime lights and urban land area. However, there is significant heterogeneity in the results across baseline levels of economic activity. Specifically, gains from road upgrades are concentrated in areas with moderate-to-high initial levels of economic activity. By contrast, there was little, or even negative, growth in areas with low levels of initial economic activity. Finally, the findings show that road upgrades contributed to a reduction in cropland in areas with medium-to-high baseline nighttime lights. The results suggest that Ethiopia's ambitious road infrastructure development program overall increased local economic activity and urbanization, but that it also had important distributional implications that need to be taken into account when planning such infrastructure programs.
format Working Paper
author Alder, Simon
Croke, Kevin
Duhaut, Alice
Marty, Robert
Vaisey, Ariana
author_facet Alder, Simon
Croke, Kevin
Duhaut, Alice
Marty, Robert
Vaisey, Ariana
author_sort Alder, Simon
title The Impact of Ethiopia’s Road Investment Program on Economic Development and Land Use : Evidence from Satellite Data
title_short The Impact of Ethiopia’s Road Investment Program on Economic Development and Land Use : Evidence from Satellite Data
title_full The Impact of Ethiopia’s Road Investment Program on Economic Development and Land Use : Evidence from Satellite Data
title_fullStr The Impact of Ethiopia’s Road Investment Program on Economic Development and Land Use : Evidence from Satellite Data
title_full_unstemmed The Impact of Ethiopia’s Road Investment Program on Economic Development and Land Use : Evidence from Satellite Data
title_sort impact of ethiopia’s road investment program on economic development and land use : evidence from satellite data
publisher World Bank, Washington, DC
publishDate 2022
url http://documents.worldbank.org/curated/en/099332404062230683/IDU073a7158605532046490b712098aed9008539
http://hdl.handle.net/10986/37280
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