Does financial inclusion enhance farmers' resilience to climate change? Evidence from rural Ethiopia

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cg.contributor.affiliationAddis Ababa Universityen_US
cg.contributor.affiliationInternational Water Management Instituteen_US
cg.contributor.donorDanish International Development Agencyen_US
cg.coverage.countryEthiopiaen_US
cg.coverage.iso3166-alpha2ETen_US
cg.creator.identifierFitsum Hagos: 0000-0002-1388-7136en_US
cg.creator.identifierAmare Haileslassie: 0000-0001-5237-9006en_US
cg.identifier.doihttps://doi.org/10.1002/sd.3277en_US
cg.identifier.iwmilibraryH053273en_US
cg.identifier.projectIWMI - 081-07-01-ECUen_US
cg.isijournalISI Journalen_US
cg.issn1099-1719en_US
cg.journalSustainable Developmenten_US
cg.reviewStatusPeer Reviewen_US
dc.contributor.authorNegera, M.en_US
dc.contributor.authorAlemu, T.en_US
dc.contributor.authorHagos, Fitsumen_US
dc.contributor.authorHaileslassie, Amareen_US
dc.date.accessioned2024-11-30T22:57:01Zen_US
dc.date.available2024-11-30T22:57:01Zen_US
dc.identifier.urihttps://hdl.handle.net/10568/162904en_US
dc.titleDoes financial inclusion enhance farmers' resilience to climate change? Evidence from rural Ethiopiaen_US
dcterms.abstractFinancial inclusion is recognized as a vital driver of sustainable development and serves as a fundamental pillar of climate action. It is crucial to enhance the climate resilience of smallholder farmers in the face of severe and unpredictable climate shocks, which disproportionately affect them. However, the level of financial inclusion in Ethiopia remains low, and its impact on the climate resilience of smallholder farmers has not been thoroughly examined using rigorous model and comprehensive dataset. This study investigates the impact of financial inclusion on the climate resilience of rural households, using a large data set from the Ethiopian Socio-Economic Survey. The principal component analysis was applied to construct a climate resilience index. The financial inclusion was measured using an index that encompasses three dimensions: penetration, availability, and usage. In order to address the endogenous nature of financial inclusion, an instrumental variable approach was employed, using the distance to the nearest financial institution and religion as instrumental variables. The results demonstrated a positive and significant impact of financial inclusion on the climate resilience of rural households. Therefore, the government should strengthen the provision of essential financial and related infrastructures in rural Ethiopia to improve access to financial products and services. Furthermore, it is essential for policymakers to initiate and implement financial sector reforms that ensure the availability of affordable and tailored financial services. These reforms should also prioritize the development of climate-resilient agricultural finance, thereby contributing to the achievement of climate action goal of sustainable development.en_US
dcterms.accessRightsLimited Accessen_US
dcterms.available2024-11-19en_US
dcterms.bibliographicCitationNegera, M.; Alemu, T.; Hagos, Fitsum; Haileslassie, Amare. 2024. Does financial inclusion enhance farmers' resilience to climate change? Evidence from rural Ethiopia. Sustainable Development, 15p. (Online first) [doi: https://doi.org/10.1002/sd.3277]en_US
dcterms.extent15p. (Online first)en_US
dcterms.issued2024-11en_US
dcterms.languageenen_US
dcterms.licenseCopyrighted; all rights reserveden_US
dcterms.publisherWileyen_US
dcterms.subjectclimate resilienceen_US
dcterms.subjectfinancial inclusionen_US
dcterms.subjectclimate changeen_US
dcterms.subjectsustainable developmenten_US
dcterms.subjectfarmersen_US
dcterms.subjectrural areasen_US
dcterms.subjecthouseholdsen_US
dcterms.subjectprincipal component analysisen_US
dcterms.typeJournal Articleen_US

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