Socio-Economic Characteristics Influencing Pastoralists’ Risk Avers Attribute Using Ordered Probit Model

Abstract

Supported by the Regional capital project for Afar Pastoral and Agro-Pastoral Research Institute (APARI).

Abstract

This research used data from 210 pastoralists and agro-pastoralists that were randomly selected from three Weredas of Afar region by following a multi-stage sampling procedure. Data were analysed using both descriptive statistical methods and econometric model. First, to assess the factors influencing the risk perception of the household regarding environment, index was developed in a Likert scale fashion and regressed to the hypothesized explanatory variables using order probit regression model. The odds ratio and marginal effects of each outcome variables were computed after estimation. The latent variable pastoralist exposure to environmental risks is increasing with age of household and education level increase. The results may suggest that the influence of significant socio-economic characteristics must be well revised to decrease the risky life of pastoralists in the study area.

Keywords: Afar pastoralists, risk perception, order probit

DOI: 10.7176/JESD/11-5-07

Publication date:March 31^st 2020