Multidimensional poverty reduction effect of climate smart agriculture practices among rural households in Siltie Zone, Central Ethiopia

Abstract

This study investigates the effect of Climate-Smart Agriculture adoption on multidimensional poverty reduction in the Siltie Zone, Central Ethiopia. Despite growing attention to CSA as a pathway toward sustainable development and poverty reduction, limited empirical evidence exists about its effect on multidimensional poverty. Using cross-sectional data collected from 416 smallholder farmers selected employing multi stage sampling procedure and GSEM, 2SLS and PSM analytical approaches by address potential endogeneity between CSA adoption and MPI. The multidimensional poverty index was constructed to capture deprivations across different dimensions while CSA adoption was measured based on the adoption and intensity of practices implemented. Results reveal that CSA adoption significantly reduces multidimensional poverty. These findings underscore the transformative potential of CSA in enhancing rural multidimensional poverty and highlight the importance of targeted policy interventions that promote different CSA practices adoption as a strategy. The study contributes to the growing body of literature linking sustainable CSA practices to inclusive and multidimensional poverty reduction as development outcomes.