ABSTRACTWe assessed an impact of bay leaf value chain intervention programme on household welfare in mountain agroforestry context. We used primary survey data from project and comparison villages and propensity score matching for creating a valid counterfactual. Results indicate that households in the project villages planted 75 per cent more bay leaf trees, produced 170 per cent more bay leaves and sold more quality products at higher prices than households in comparison villages; per-capita household income increased by NPR 5000?7300, share of bay leaf income in total household income increased by 8?10 per cent and level of poverty declined by 6?8 per cent. Households with female respondents benefited more in some aspects but not so in others, especially in enrolling children in school.
