Shock-Driven Agricultural Innovation, Energy Sources, and Social Cohesion: Evidence from Households in Ethiopia

This dissertation consists of three empirical papers. The first paper, “Shocks, Coping Strategies and the Adoption of Technologies by Rural Households in Ethiopia,” uses 2018/19 Ethiopian Socio-Economic Survey data on 2,223 rural households producing barley, maize, teff, and wheat. Unlike prior studies that often examine a single shock, this paper analyzes how multiple shocks—idiosyncratic and covariate—affect the adoption of irrigation, improved seeds, chemical fertilizers, and organic fertilizers. It also examines coping strategies and the role of extension programs. Using a multivariate probit model informed by diffusion and economic constraints theories, the study finds shocks have diverse effects: food price shocks and local unrest reduce adoption, while droughts, livestock losses, and extension services increase it. Extension support is crucial for coping, particularly with droughts and livestock deaths. Policy implications include strengthening extension programs, stabilizing food prices, expanding microfinance, ensuring peace, and improving infrastructure to promote adoption. The second paper, “The Effects of Energy Sources on Household Health Outcomes in Ethiopia,” uses three waves of the Socio-Economic Survey (2011–2016) covering 2,371 households. It applies fixed-effects logit and propensity score matching to study how traditional fuels (firewood, charcoal, residues, dung, kerosene) versus modern energy (electricity, solar, biogas) affect health outcomes. Health is measured through consultations for respiratory diseases (e.g., asthma, pneumonia) and general health problems (e.g., kidney or heart disease). Results show households relying on traditional fuels are more likely to suffer respiratory illness, especially in rural areas, but no significant link emerges for general health problems. The study suggests clean energy expansion—such as solar or biogas—and improved cookstove programs, though affordability and awareness barriers remain. The third paper, “Social Cohesion among Refugees and Host Communities in Ethiopia: A Comparative Analysis,” is conducted under the World Bank–UNHCR Joint Data Center. It uses the 2022/23 Socio-Economic Survey of Refugees (3,445 households: 1,724 hosts, 1,721 refugees) and applies contact theory, logit, and OLS models. The analysis focuses on informal institutions: Iqqub (savings groups) and Iddir (mutual support networks). Social cohesion is measured by perceptions (e.g., refugees’ effect on jobs, prices, trust, security, and rights) and attitudes (e.g., discrimination, reliance on Ethiopian friends). Findings show Iddir participation improves perceptions and strengthens cohesion, even among rural or literate hosts often skeptical of refugees. In contrast, Iqqub shows no significant effect. The paper highlights the policy value of incorporating informal institutions into strategies that foster refugee-host integration. In general, this dissertation provides a comprehensive analysis of three development challenges facing Ethiopia: agricultural technology adoption, energy consumption and its health impacts, and social cohesion between refugees and hosts. It emphasizes the need for providing targeted extension services and support to farmers to help them during times of shocks, thereby enhancing agricultural productivity; investing in clean energy solutions to improve households' health by mitigating the risks associated with traditional fuel use; and fostering social cohesion through informal networks such as Iddir and Iqqub. Integrating these findings might help Ethiopia address its challenges to sustainable development, ultimately contributing to stability and prosperity.