Vulnerability assessment varies widely across households, countries, and regions. Though many previous studies assessed vulnerability to climate change, their unit of analysis was aggregate. Therefore, the objective of this study was to measure the vulnerability of smallholder farmers to climate change at the household level and identify its determinant factors in east Hararghe zone. A multi-stage sampling procedure was used to select districts, kebeles, and sample respondents. Vulnerability as expected poverty approach was used to measure household-level vulnerability. Logit model was also used to assess factors contributing to households’ vulnerability. The study revealed that 73% of households were vulnerable to climate-induced shocks. Households with better farm experience, land size, livestock ownership, access to credit, access to extension service, social capital, access to climate information, non-farm income, and headed by a male were not vulnerable to climate change; whereas households who were living in low and midland agro-ecologies, far from the market, and participating in productive safety-net programs were vulnerable to climate change. The study indicated that the vulnerability of smallholder farmers was sensitive to the minimum income required to maintain daily life. Income-generating activities that supplement farm income should be well designed in policy to reduce the vulnerability of smallholder farmers.

The economic value of water is essential for the rational allocation of the scarce water resource as its availability has become a problem in many countries of the world. This study specifically aimed to assess the households’ willingness to pay decision and to estimate farmers’ willingness to pay for improved irrigation water use. The primary was data collected from 210 households selected through a multistage sampling technique followed by a probability proportional to sample size while it was also supplemented by secondary data. Double-bounded dichotomous choices with follow-up open-ended questions of contingent valuation methods were employed. The result of the study showed that all of the households were willing to pay for improved irrigation water use. The mean willingness to pay for the use of improved irrigation water from the double-bounded dichotomous question of Seemingly Unrelated Bivariate Probit model was Birr 829.46 per year per timad (0.25 ha). On the other hand, the mean willingness to pay from open-ended questions was Birr 726.55 per year per timad (0.25 ha). The respective total aggregate value of improved irrigation water use in the study varies from 33,421,300 birr in open ended to 38,155,160 birr from double bound. Thus, appropriate irrigation water pricing will make the user more aware of the resource scarcity. Therefore, the study suggests a good indicator for the concerned body to invest in expanding the current irrigation projects and introducing proper irrigation water pricing, creating more value for improved irrigation, leading to efficient management of the improved system.

In rural areas where the farmer's livelihood is based on farming, non-farm activity was considered as an additional source of income that plays an important role in improving household consumption. The Hackman results indicate that non-farm participation decision of households has positive significant effect on their level of household consumption. Incomes of the household, education level and family size have positive significant effect on household consumption. Variables such as education, access to credit, membership to iqub, household health status, access to training, and own savings, were identified to be the main factors positively influencing household decision to non-farm with a statistical significant level. The study's recommendation was; provide various pieces of farm and non-farm training provide the infrastructure that is a barrier to rural development and develop the culture of saving in the community.

Women have an important role in business participation that has a great impact on improving households’ livelihoods. The main objective of this study was to describe factors determining women's non-farm participation in non-farm activities. In order to identify the determining factor of women’s participation in non -agricultural activities, an English questionnaire was translated into Afan Oromo in a way that respondents and data collectors could understand. For analyzing the data, the researcher used the binary logit model, and the result of the study shows that the determinants of women's participation in non-agricultural activities were age, family size, household property ownership, land size, non-farm training, lack of access to credit, membership in Idir, women's participation in local community affairs, and distance from the market location. Among these determinant variables, land size, family size, and distance from market location negatively influence women's participation, while the rest positively influence women's participation in non-agricultural activities. Furthermore, socioeconomic factors such as society's backward attitude toward women and women's low participation in education have been identified as major issues. Accordingly, the study recommended that the government, NGOs, and various religious leaders work together to minimize the socio-economic impact on women, and the women's and children's affairs office in the study area should work with the university researchers to identify the problems faced by women.