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This paper analyzes how structural and institutional heterogeneity among irrigation cooperatives shapes the impact of membership on farmers' welfare in northern Ethiopia, using a novel heteroscedasticity-based identification strategy. More specifically, we estimate how cooperative characteristics influence members' income and poverty level. We find that stricter water use regulations have income-enhancing and poverty-reducing effects for farmers. We also find that farmers benefit more fromdoi:10.22004/ag.econ.304767 fatcat:lxvrlnunwzcstfxmflw4nc7g3e