Pastoralist Households’ Willingness to Pay For Index-Based Livestock Insurance in Borana Zone: The Case of Moyale Woreda
| dc.contributor.advisor | Kelifa Srmolo | |
| dc.contributor.author | Ifa Deneke | |
| dc.date.accessioned | 2026-03-06T11:40:36Z | |
| dc.date.available | 2026-03-06T11:40:36Z | |
| dc.date.issued | 2025-07-29 | |
| dc.description.abstract | This study assessed the pastoralist household’s willingness to pay for index-based livestock insurance. The study used mixed research design. Data were collected from both secondary and primary sources. A multi-stage sampling technique was used to collect data from a cross- sectional survey of 200 pastoralist households in Moyale woreda. Data was collected using desk reviews, Key Informant Interview (KIIs), Focus Group Discussions (FGDs) and household survey. This study employed the Contingent Valuation Method (CVM) to determine the willingness to pay for the purchase of index-based livestock insurances. Data were analyzed by various descriptive statistics such as frequency distribution tables, graphs, charts, mean and standard deviations. Further logistic regression model was used to determine the factors that influence pastoralist household’s willingness to pay for IBLI. In addition, qualitative data were presented in a rephrased and verbatim form and were analyzed by content analysis and narratives of case studies. The study found that livestock is the main source of livelihood for Borana pastoralists. Livestock keeping is important economic activity and has vital role in the livelihoods of the population as a source of food, draft power and much needed cash income. Largest proportion (92.41%) of respondents indicated that cattle is the dominant livestock species in the study area. The study revealed that among the problems that create multi-hazard situations in pastoral areas, drought is ranked first, and index-based livestock insurance is one of the mechanisms to reduce the impacts of drought. The study revieled that, largest majority (89 %) were aware of the existing livestock insurance policy. The study found that largest proportion (91.5%) of the respondents purchased livestock insurance for cattle, while the remaining 7 %, 1.5 % purchased the insurance for shoats and camels respectively. Further, the study also found that the maximum insurance purchase for cattle is 760, while the maximum purchase for shoats and camels is 250 and 500 respectively. The mean purchase for cattle is 299. 68, while it is 125 for camel, 98.33 for goats, and 68.75 for sheep. Concerning the payout received, the maximum payout received during the previous payout is 43,100 birr and the mean payout is 15,420 birr. Moreover, the study found that, about 76 percent of the households had a positive willing to pay for different categories of livestock. The study found that the households WTP is influenced by age of households, family size, sex of household head, IBLI training, drought shock and received payout. It is concluded that, given the exposure to the recurrent droughts’ pastoralist households are more willing to pay for livestock insurance. Therefore, to increase the pastoral households’ willingness to pay for index-based livestock insurance NGOs, local and national government should work on improving the socioeconomic status of the pastoralist households, provisions of the continuous training on the adverse impact of drought shock and role of insurance | |
| dc.identifier.uri | https://etd.aau.edu.et/handle/123456789/7901 | |
| dc.language.iso | en | |
| dc.publisher | AAU | |
| dc.title | Pastoralist Households’ Willingness to Pay For Index-Based Livestock Insurance in Borana Zone: The Case of Moyale Woreda | |
| dc.type | Thesis |