The Role of Social Capital in Adaptation to Climate Change Shocks: Ethiopia’s Experience

Abstract

Ethiopia, like many sub-Saharan African countries, frequently experiences climate change-induced shocks, particularly droughts and floods. These events severely impact the well-being of people, especially in rural communities. While the country struggles to recover from these shocks, studies consistently highlight the importance of access to critical resources in building climate resilience and strengthening adaptive capacity. This study focuses on social capital, an often overlooked yet crucial resource, and its role in mitigating the effects of climate change shocks and facilitating adaptation in Ethiopia. Utilizing a probit regression model based on data from 4951 households in the 2015/16 Ethiopian Socioeconomic Survey, the study found that households with greater social capital (measured by iddir membership, borrowing, and transfers) are less likely to be affected by drought shocks. Furthermore, stronger social capital is associated with reduced vulnerability to climate shocks and increased adaptive capacity. These findings suggest that social capital can serve as an alternative approach to supporting climate change responses in Ethiopia, especially where access to formal insurance schemes is limited. However, further research is needed to explore the specific mechanisms through which social capital fosters resilience and adaptation.