IDEAS home Printed from https://ideas.repec.org/a/eee/agisys/v146y2016icp44-54.html
   My bibliography  Save this article

Livestock wealth and social capital as insurance against climate risk: A case study of Samburu County in Kenya

Author

Listed:
  • Ng’ang’a, Stanley Karanja
  • Bulte, Erwin H.
  • Giller, Ken E.
  • Ndiwa, Nicholas N.
  • Kifugo, Shem C.
  • McIntire, John M.
  • Herrero, Mario
  • Rufino, Mariana C.

Abstract

We use data from 500 households in Samburu County (Kenya) to explore how natural environment and market accessibility affect coping and adaptation strategies of pastoralists. In particular, we ask whether households accumulate livestock wealth and invest in structural and cognitive social capital to protect themselves against climate risks. We find weak evidence that households accumulate livestock wealth in response to living in a drier environment, and no evidence that households invest in either structural or cognitive social capital as insurance against climate risks. However, coping strategies vary across social groups. For example, while rainfall does not robustly affect cognitive social capital (trust)—we find that the “poor” and “financially-integrated” households (i.e., those who have relatively good access to credit and capacity to save money) show greater mutual trust in drier environments. The results from this study can be used for priority setting by policy makers and development agencies for programs aimed at safeguarding household livelihoods in arid and semi-arid lands (ASALs).

Suggested Citation

  • Ng’ang’a, Stanley Karanja & Bulte, Erwin H. & Giller, Ken E. & Ndiwa, Nicholas N. & Kifugo, Shem C. & McIntire, John M. & Herrero, Mario & Rufino, Mariana C., 2016. "Livestock wealth and social capital as insurance against climate risk: A case study of Samburu County in Kenya," Agricultural Systems, Elsevier, vol. 146(C), pages 44-54.
    • Handle: RePEc:eee:agisys:v:146:y:2016:i:c:p:44-54
    DOI: 10.1016/j.agsy.2016.04.004
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0308521X16300646
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.agsy.2016.04.004?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jones, Eric C., 2004. "Wealth-Based Trust and the Development of Collective Action," World Development, Elsevier, vol. 32(4), pages 691-711, April.
    2. Samuel Bowles & Herbert Gintis, 2002. "Social Capital and Community Governance," Economic Journal, Royal Economic Society, vol. 112(483), pages 419-436, November.
    3. John G. McPeak & Cheryl R. Doss, 2006. "Are Household Production Decisions Cooperative? Evidence on Pastoral Migration and Milk Sales from Northern Kenya," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(3), pages 525-541.
    4. Guido Tabellini, 2010. "Culture and Institutions: Economic Development in the Regions of Europe," Journal of the European Economic Association, European Economic Association, vol. 8(4), pages 677-716, June.
    5. Chinwe Ifejika Speranza, 2010. "Drought Coping and Adaptation Strategies: Understanding Adaptations to Climate Change in Agro-pastoral Livestock Production in Makueni District, Kenya," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 22(5), pages 623-642, December.
    6. Townsend, Robert M, 1994. "Risk and Insurance in Village India," Econometrica, Econometric Society, vol. 62(3), pages 539-591, May.
    7. Bac, Mehmet, 2009. "Generalized trust and wealth," International Review of Law and Economics, Elsevier, vol. 29(1), pages 46-56, March.
    8. Bryan, Elizabeth & Ringler, Claudia & Okoba, Barrack & Roncoli, Carla & Silvestri, Silvia & Herrero, Mario, 2011. "Coping with climate variability and adapting to climate change in Kenya: Household and community strategies and determinants," Project notes 3, International Food Policy Research Institute (IFPRI).
    9. Binswanger, Hans P & McIntire, John, 1987. "Behavioral and Material Determinants of Production Relations in Land-Abundant Tropical Agriculture," Economic Development and Cultural Change, University of Chicago Press, vol. 36(1), pages 73-99, October.
    10. Barnett, Barry J. & Barrett, Christopher B. & Skees, Jerry R., 2008. "Poverty Traps and Index-Based Risk Transfer Products," World Development, Elsevier, vol. 36(10), pages 1766-1785, October.
    11. Peter D. Little & Kevin Smith & Barbara A. Cellarius & D. Layne Coppock & Christopher Barrett, 2001. "Avoiding Disaster: Diversification and Risk Management among East African Herders," Development and Change, International Institute of Social Studies, vol. 32(3), pages 401-433, June.
    12. van Rijn, Fédes & Bulte, Erwin & Adekunle, Adewale, 2012. "Social capital and agricultural innovation in Sub-Saharan Africa," Agricultural Systems, Elsevier, vol. 108(C), pages 112-122.
    13. Sommarat Chantarat & Andrew G. Mude & Christopher B. Barrett & Michael R. Carter, 2013. "Designing Index-Based Livestock Insurance for Managing Asset Risk in Northern Kenya," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 80(1), pages 205-237, March.
    14. Mario J. Miranda & Katie Farrin, 2012. "Index Insurance for Developing Countries," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 34(3), pages 391-427.
    15. Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 71(3), pages 393-410, June.
    16. Coate, Stephen & Ravallion, Martin, 1993. "Reciprocity without commitment : Characterization and performance of informal insurance arrangements," Journal of Development Economics, Elsevier, vol. 40(1), pages 1-24, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Martin C. Parlasca & Oliver Mußhoff & Matin Qaim, 2020. "Can mobile phones improve nutrition among pastoral communities? Panel data evidence from Northern Kenya," Agricultural Economics, International Association of Agricultural Economists, vol. 51(3), pages 475-488, May.
    2. Berry, Kevin & Fenichel, Eli P. & Robinson, Brian E., 2019. "The ecological insurance trap," Journal of Environmental Economics and Management, Elsevier, vol. 98(C).
    3. Brinkmann, Katja & Kübler, Daniel & Liehr, Stefan & Buerkert, Andreas, 2021. "Agent-based modelling of the social-ecological nature of poverty traps in southwestern Madagascar," Agricultural Systems, Elsevier, vol. 190(C).
    4. Hunecke, Claudia & Engler, Alejandra & Jara-Rojas, Roberto & Poortvliet, P. Marijn, 2017. "Understanding the role of social capital in adoption decisions: An application to irrigation technology," Agricultural Systems, Elsevier, vol. 153(C), pages 221-231.
    5. Ailish Craig & Craig W. Hutton & Justin Sheffield, 2022. "Social Capital Typologies and Sustainable Development: Spatial Patterns in the Central and Southern Regions of Malawi," Sustainability, MDPI, vol. 14(15), pages 1-23, July.
    6. Noromiarilanto, Fanambinantsoa & Brinkmann, Katja & Faramalala, Miadana H. & Buerkert, Andreas, 2016. "Assessment of food self-sufficiency in smallholder farming systems of south-western Madagascar using survey and remote sensing data," Agricultural Systems, Elsevier, vol. 149(C), pages 139-149.
    7. Parlasca, Martin C. & Mußhoff, Oliver & Qaim, Matin, 2018. "How mobile phones can improve nutrition among pastoral communities: Panel data evidence from Northern Kenya," GlobalFood Discussion Papers 274651, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    8. Michalscheck, Mirja & Groot, Jeroen C.J. & Fischer, Gundula & Tittonell, Pablo, 2020. "Land use decisions: By whom and to whose benefit? A serious game to uncover dynamics in farm land allocation at household level in Northern Ghana," Land Use Policy, Elsevier, vol. 91(C).
    9. Wondimagegn Tesfaye & Gebrelibanos Gebremariam, 2020. "Consumption smoothing and price enhancement motives for grain storage: empirical perspectives from rural Ethiopia," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 8(1), pages 1-19, December.
    10. Wegenast, Tim & Richetta, Cécile & Krauser, Mario & Leibik, Alexander, 2022. "Grabbed trust? The impact of large-scale land acquisitions on social trust in Africa," World Development, Elsevier, vol. 159(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Farrin, Katie & Miranda, Mario J., 2015. "A heterogeneous agent model of credit-linked index insurance and farm technology adoption," Journal of Development Economics, Elsevier, vol. 116(C), pages 199-211.
    2. Takahashi, Kazushi & Ikegami, Munenobu & Sheahan, Megan & Barrett, Christopher B., 2014. "Quasi-experimental evidence on the drivers of index-based livestock insurance demand in Southern Ethiopia," IDE Discussion Papers 480, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    3. Takahashi, Kazushi & Ikegami, Munenobu & Sheahan, Megan & Barrett, Christopher B., 2016. "Experimental Evidence on the Drivers of Index-Based Livestock Insurance Demand in Southern Ethiopia," World Development, Elsevier, vol. 78(C), pages 324-340.
    4. Quentin Stoeffler & Michael Carter & Catherine Guirkinger & Wouter Gelade, 2022. "The Spillover Impact of Index Insurance on Agricultural Investment by Cotton Farmers in Burkina Faso," The World Bank Economic Review, World Bank, vol. 36(1), pages 114-140.
    5. Mobarak, A. Mushfiq & Rosenzweig, Mark R., 2012. "Selling formal Insurance to the Informally Insured," Center Discussion Papers 121671, Yale University, Economic Growth Center.
    6. Petraud, Jean & Boucher, Stephen & Carter, Michael, 2015. "Competing theories of risk preferences and the demand for crop insurance: Experimental evidence from Peru," 2015 Conference, August 9-14, 2015, Milan, Italy 211383, International Association of Agricultural Economists.
    7. Zimmerman, Frederick J. & Carter, Michael R., 2003. "Asset smoothing, consumption smoothing and the reproduction of inequality under risk and subsistence constraints," Journal of Development Economics, Elsevier, vol. 71(2), pages 233-260, August.
    8. Besley, Timothy, 1995. "Savings, credit and insurance," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 36, pages 2123-2207, Elsevier.
    9. Antoine Leblois & Philippe Quirion & Benjamin Sultan, 2013. "Price vs. weather shock hedging for cash crops: ex ante evaluation for cotton producers in Cameroon," Working Papers hal-00796528, HAL.
    10. Hailin Sun & Sanxi Li & Tong Wang, 2013. "Assortative Matching and Risk Sharing," University of East Anglia Applied and Financial Economics Working Paper Series 041, School of Economics, University of East Anglia, Norwich, UK..
    11. Alger, Ingela & Weibull, Jörgen, 2007. "The Fetters of the Sib: Weber Meets Darwin," SSE/EFI Working Paper Series in Economics and Finance 682, Stockholm School of Economics.
    12. Fabio Sabatini, 2004. "Il rapporto tra Economia e Società nella ricerca sul capitale sociale. Un tentativo di impostazione contabile e una classificazione “funzionale” della letteratura," Others 0411005, University Library of Munich, Germany.
    13. Stefan Dercon, 2002. "Income Risk, Coping Strategies, and Safety Nets," The World Bank Research Observer, World Bank, vol. 17(2), pages 141-166, September.
    14. Sebastain N. Awondo & Octavio A. Ramirez & Gregory J. Colson & Esendugue G. Fonsah & Genti Kostandini, 2017. "Self†protection from weather risk using improved maize varieties or off†farm income and the propensity for insurance," Agricultural Economics, International Association of Agricultural Economists, vol. 48(1), pages 61-76, January.
    15. Nathaniel Jensen & Munenobu Ikegami & Andrew Mude, 2017. "Integrating Social Protection Strategies for Improved Impact: A Comparative Evaluation of Cash Transfers and Index Insurance in Kenya," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 42(4), pages 675-707, October.
    16. Vesall Nourani & Christopher Barrett & Eleonora Patacchini & Thomas Walker, 2019. "Working Paper 313 - Altruism, Insurance, and Costly Solidarity Commitments," Working Paper Series 2439, African Development Bank.
    17. Fafchamps, Marcel & Gubert, Flore, 2007. "The formation of risk sharing networks," Journal of Development Economics, Elsevier, vol. 83(2), pages 326-350, July.
    18. Barnett, Barry J. & Barrett, Christopher B. & Skees, Jerry R., 2008. "Poverty Traps and Index-Based Risk Transfer Products," World Development, Elsevier, vol. 36(10), pages 1766-1785, October.
    19. Carter, Michael R. & Cheng, Lan & Sarris, Alexandros, 2016. "Where and how index insurance can boost the adoption of improved agricultural technologies," Journal of Development Economics, Elsevier, vol. 118(C), pages 59-71.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:agisys:v:146:y:2016:i:c:p:44-54. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/agsy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.