Masterarbeit aus dem Jahr 2014 im Fachbereich VWL - Umweltökonomie, Ethiopian Civil Service University, Sprache: Deutsch, Abstract: This study examines the potential benefits of urban expansion initiative for sustainable urban development and its challenges in Mekelle city. Household surveys to get extensive data from the farming community, participatory group discussions and key informants interviews were used to examine the research study. Mekelle is among the fast growing cities of Ethiopia, both physically and in terms of population size. From the time of its establishment, its population is increasing at high rate. The increase in urban population adds high demand of urban land; as a result adequate land to accommodate the projected growing population is necessary and making room for urban expansion is vital. Mekelle city municipal officials are planning ahead to ensure that their cities remain inclusive and affordable and to bring economic growth, social progress, protect the environment and to ensure good governance Despite this potential benefits of urban expansion; urban expansion causes certain problems to the peri-urban farming community. In addition, it causes environmental, economical and social problems if proper preparation of all developmental activities is not taken. To ensure the successful implementation of the urban expansion initiative strengthening institutional setup, participation of the farming community, provision of entrepreneurial skills to create alternative livelihood to the farmers and controlling illegal settlements and land speculation are crucial.