Effects of Carbon Market Participation on Pastoralist Livelihoods and Household Resilience in Ngaremara, Isiolo County, Kenya

Abstract

Carbon market initiatives are increasingly recognized as mechanisms for enhancing climate adaptation while simultaneously improving livelihoods in vulnerable regions. This study examines the outcomes of carbon market initiatives on pastoralist livelihoods and household resilience in Ngaremara, Isiolo County, Kenya. A cross-sectional survey of 367 households was conducted to assess how participation in carbon markets has influenced income stability, employment opportunities, and household adaptation to climate variability. Quantitative data were analyzed using descriptive statistics and regression analysis, while qualitative responses were thematically analyzed to capture community experiences. The findings reveal that while carbon markets have generated some economic benefits such as increased income and employment opportunities, challenges remain in ensuring equitable benefit distribution and effective household adaptation. Approximately 51.2% of respondents reported improved household incomes, while 48.2% indicated no significant financial change, and 0.5% reported that their incomes had decreased significantly following participation in carbon market initiatives (percentages may not sum to exactly 100% due to rounding). Household resilience to climate variability showed moderate improvement, with 55% of respondents reporting enhanced adaptive capacity. However, governance challenges, limited financial access, and socio-cultural barriers constrained the full realization of benefits. These findings highlight the need for policy interventions that strengthen financial inclusion, improve governance structures, and enhance technical training for pastoralist communities to ensure equitable and sustainable outcomes from carbon market initiatives. Strengthening these frameworks can help align carbon finance mechanisms with broader climate adaptation and rural development strategies in dryland regions.