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Climate shocks have been shown to reduce agricultural output and cause production fluctuations in developing countries. When livelihoods depend on rain-fed agriculture, like in Ethiopia, climate shocks will translate into consumption shocks. Despite significant improvements in household consumption in Ethiopia, shocks caused by climate and other factors are negatively affecting household consumption dynamics. Therefore, examining household consumption dynamics in the context of climate-induced shocks helps to guide resilience capacity and establish appropriate programs and interventions. The study used a three-round panel dataset based on the Ethiopian socioeconomic survey and spatial rainfall data. The results of the linear dynamic panel model show that lagged consumption values, market shocks, and changes in rainfall positively affect consumption dynamics. In contrast, production, temperature, and rainfall shocks have an inverse relationship. Strategies for mitigating climate shocks and consumption aftershocks help stabilize consumption over time. Support to strengthen household coping strategies may involve restoring existing livelihoods and forms of production or reducing household vulnerability. Therefore, government intervention is required for asset accumulation programs to support household coping strategies and responses to shocks. In addition, the dynamic link between consumption and essential socioeconomic and institutional factors must be considered to minimize the impact of climate shocks on consumption dynamics.

The Ethiopian government and various stakeholders have made significant efforts to improve household consumption, poverty, and food security. However, the results have not met expectations. To ensure that programs are effective, it is critical to have a robust measure of well-being that considers social, economic, institutional and environmental challenges. Previous studies on welfare have focused on a single measurement, but it is important to recognize the interdependence between various well-being indicators to formulate comprehensive interventions and initiatives for rural households in the context of climate change and variability. This paper examines the dynamic link between unidimensional poverty, multidimensional poverty, and food security using panel data from Ethiopia. The interdependency of welfare measurements was estimated using a seemingly unrelated multivariate probit model with a conditional mixed process estimator with full information, a simulated maximum likelihood approach, and the presumption that different metrics can have various policy implications. The chances of interdependence wellbeing status were low for households that were simultaneously food insecure and poor or nonpoor. Multidimensional poverty has a higher success rate than food insecurity or consumption poverty. Unlike unidimensional poverty and food insecurity, multidimensional poverty has a higher chance of to be deprived. Policymakers must consider the synergies and trade-offs of different types of welfare and the dynamic linkage between climate-induced shocks and other covariates with household welfare to minimize households' vulnerability to climate-induced shocks for effective intervention for rural households to obtain a whole picture of wellbeing.

Climate impact mitigation through improved agricultural practices is one means by which agricultural productivity increases to meet the growing food demands in the world. This study evaluated the impacts of climate-smart Practices on rural households’ nutrition security. The study used both primary and secondary data sources. Primary data was collected from sample respondents in the 2020/21 production year. Descriptive statistics and econometric models were employed for data analysis. Multinomial logit result indicated that the probability of adopting climate-smart agricultural practices is influenced by the education level of the head, extension contact, livestock holding, membership coop, market information, advice on land management, climate change information, farmers training, climate change perception, and weather road distance. The result from GPS estimation indicated that treatment level two the number of climate-smart practices increases household nutritional status by16%. Likewise, treatment level three and four of the number of climate-smart practices increases the household level nutritional status by 37% and 76% respectively over that of treatment level one of the climate-smart practices and is significant at a 1% statistical probability level. This study has found evidence that the adoption of climate-smart on the households’ nutrition security status. Therefore, the result of this study would be expected to significantly contribute as policy and strategic inputs for policymakers in designing rural livelihood improvement policies and to the beneficiary in enhancing their welfare and living standard.

Abstract This paper examines impacts of Prosopis juliflora (hereinafter may be referred as ‘Prosopis’) invasion on livelihoods of agro (pastoral) households using detailed household data in rural Dire Dawa Administration of Ethiopia. Cross-sectional data were collected from a total of 450 sample households whereby 250 were from Prosopis-invaded households and the remaining 200 from non-Prosopis-invaded households. The major research question of the study was, ‘what would be the livelihoods of Prosopis-invaded households had they not been invaded by Prosopis?’ To answer this question, descriptive and econometric tools were employed. The study results revealed that family size, dependency ratio and access to irrigation had negative and significant relationships with Prosopis invasion. On the other hand, age of the household head, Tropical Livestock Unit (TLU) and engagement in food for work programmes were positively related to Prosopis invasion. The results of this study show that the positive effects of Prosopis invasion were pronounced in terms of education expenditure, average annual income from crop production, off-farm income, food and non-food expenditure and physical food consumption, whereas there has been negative effects of Prosopis invasion due to reduced income generation from milk products. In this study, possible recommendations were drawn for stakeholders in order to reverse Prosopis adverse effects and optimize the positive impacts of this species in the study area.