Application of Benefit Incidence Analysis (BIA) as a Tool to Evaluate Climate Action Spending on Climate Smart Agriculture Initiatives: An Experimental Study of the Usage of BIA on Agriculture-Related Spending in Zambia

Abstract

Using survey data obtained through semi-structured questionnaires which were administered using a multi-stage random sampling process, this study sought to undertake an experimental application of the Benefit Incidence Analysis (BIA) socio-economic evaluation tool on 117 rural farming households in Chongwe District of Zambia. The sampled households were receiving agricultural support through the Government-financed Farmer Input Support Programme (FISP). Specifically, this experimental study of the usage of BIA on agriculture-related spending in Zambia was aimed at proving possible replication of the usage of BIA for evaluating socio-economic and distributional impacts of financing for Climate Smart Agricultural (CSA) practices. Results prove that BIA assessment variables such as income/expenditure quintiles, education status, gender and age are also applicable to and essential in evaluating CSA initiatives. Despite this study proving applicability to CSA assessments, undertaking a BIA is highly technical and data intensive. Such an undertaking would heavily rely on the timely availability of complementary economic and financial data and an intermediate to advanced level of technical capacity in order to administer the analysis.