The Role of Livestock Portfolios and Group-Based Approaches for Building Resilience in the Face of Accelerating Climate Change: An Asset-Based Panel Data Analysis from Rural Kenya

29 Pages Posted: 21 Oct 2015

See all articles by Marther Ngigi

Marther Ngigi

University of Bonn - Center for Development Research (ZEF)

Ulrike Mueller

University of Hohenheim

Regina Birner

University of Hohenheim

Date Written: October 2015

Abstract

This study examines the impact of multiple shocks on assets by employing two waves of a panel data set of 360 rural households in three agro-ecological zones in Kenya. To control for unobserved heterogeneity, a ‘within’ household fixed effects model was employed. One major finding is that climatic shocks negatively affect households’ livestock holdings -- apart from small ruminant and non-ruminant livestock due to their higher adaptive capacity. Consequently, households rely on two major coping strategies to smooth their consumption level: (1) adjusting their livestock portfolios, and (2) borrowing from group-based approaches. The latter strategy is particularly important for poor households in safeguarding their already low asset base. The findings suggest that livestock protection policies, such as diversification of livestock portfolios, promotion of fodder banks and index-based livestock insurance, are substantial. Scaling-up of group-based approaches would augment poor households’ recovery and resilience against multiple shocks in the face of accelerating climate change.

Keywords: multiple shocks, livestock, group-based approaches, rural Kenya

JEL Classification: C33, D13, I18, O12, O13, Q54

Suggested Citation

Ngigi, Marther and Mueller, Ulrike and Birner, Regina, The Role of Livestock Portfolios and Group-Based Approaches for Building Resilience in the Face of Accelerating Climate Change: An Asset-Based Panel Data Analysis from Rural Kenya (October 2015). Available at SSRN: https://ssrn.com/abstract=2676574 or http://dx.doi.org/10.2139/ssrn.2676574

Marther Ngigi (Contact Author)

University of Bonn - Center for Development Research (ZEF) ( email )

Walter-Flex-Str. 3
Bonn, NRW 53113
Germany

Ulrike Mueller

University of Hohenheim ( email )

Fruwirthstr. 48
Stuttgart, 70599
Germany

Regina Birner

University of Hohenheim ( email )

Fruwirthstr. 48
Stuttgart, 70599
Germany

Register to save articles to
your library

Register

Paper statistics

Downloads
59
Abstract Views
493
rank
365,543
PlumX Metrics