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Abstract

Integral to the global trends in climate change, there are slow but notable long-term changes in level of weather (e.g. slow increase in temperature and decline in rainfall) accompanied with increased weather extremes such as increased frequency and intensity of drought in Ethiopia. These changes are occurring over large geographical area including the most populous and arable highlands. Rural households in these environmentally stressed areas employ multiple strategies to manage environmental risk. However, as evident from the empirical regularities below, vulnerability to poverty persists because of households’ diminished capacity to mitigate and cope with frequent occurrence of weather extremes. The key development challenge is to reduce both structural poverty and vulnerability to poverty.

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