Impact of land acquisition for large-scale agricultural investments on vulnerability of displaced households to climate change shocks in Ethiopia

ABSTRACT Although the socio-economic impacts of land acquisition for large-scale agricultural investments (LSAIs) are well researched, studies exploring the impact of LSAIs on climate change vulnerability of the displaced smallholders are scanty or none. This study, therefore, intends to bridge this knowledge gap. It empirically investigates the impact of LSAIs on the climate change vulnerability of displaced smallholders. Data was collected from 521 sample households (49% displaced and 51% non-displaced households) using the face-to-face survey data collection method in the Oromia region. Principal component analysis (PCA) and propensity score matching (PSM) methods were applied to analyze the data. The results indicate that LSAIs have increased the vulnerability of displaced smallholder farmers to climate change shocks by up to three-fold compared to the control households, which is significant at 1%. The finding implies that policymakers should consider the implications of land deals on the vulnerability of the displaced smallholders and design appropriate adaptation strategies to mitigate the impacts. The empirical finding from this study has filled the existing information gap in the areas of climate change vulnerability of the displaced farmers.