Climate change adaptation and its impacts on farm income and downside risk exposure
Multiple previous reports have established that climate change disproportionately impacts smallholder farmers in developing countries. This study investigates the impact of climate change adaptation, defined by farmers’ decisions to adopt the improved practices to mitigate or reduce the effects of c...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Elsevier
2022-12-01
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| Series: | Resources, Environment and Sustainability |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2666916122000305 |
| _version_ | 1797989924071276544 |
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| author | Chandra Dhakal Savin Khadka Cheolwoo Park Cesar L. Escalante |
| author_facet | Chandra Dhakal Savin Khadka Cheolwoo Park Cesar L. Escalante |
| author_sort | Chandra Dhakal |
| collection | DOAJ |
| description | Multiple previous reports have established that climate change disproportionately impacts smallholder farmers in developing countries. This study investigates the impact of climate change adaptation, defined by farmers’ decisions to adopt the improved practices to mitigate or reduce the effects of climate change, on crop revenue and revenue risk exposure. We employ the control function approach in an endogenous switching regression framework to account for selection bias. Using the household survey data from Nepal, we find that climate change adaptation positively affects crop revenue and revenue risk reduction. Specifically, climate change adaptation leads to a 21.6% increase in farm revenue and a 6.4% reduction in downside risk exposure, which are robust to several specifications. Counterfactual analysis shows the considerable heterogeneities in the outcomes among adapters and non-adapters. In particular, adapting farm households realize substantial and distinguishable gains in revenues and declines in risk levels relative to their non-adapting peer households. Our findings imply that adapting to climate change can be an effective management practice to mitigate the risks associated with climate change and increase resilience. |
| first_indexed | 2024-04-11T08:27:09Z |
| format | Article |
| id | doaj.art-c50e299d3e6744f691028a2385d801a9 |
| institution | Directory Open Access Journal |
| issn | 2666-9161 |
| language | English |
| last_indexed | 2024-04-11T08:27:09Z |
| publishDate | 2022-12-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Resources, Environment and Sustainability |
| spelling | doaj.art-c50e299d3e6744f691028a2385d801a92022-12-22T04:34:41ZengElsevierResources, Environment and Sustainability2666-91612022-12-0110100082Climate change adaptation and its impacts on farm income and downside risk exposureChandra Dhakal0Savin Khadka1Cheolwoo Park2Cesar L. Escalante3Department of Agricultural and Applied Economics, University of Georgia, Athens, GA 30602, USA; Correspondence to: 207 B Conner Hall, University of Georgia, Athens, GA 30602, USADepartment of Agricultural and Applied Economics, University of Georgia, Athens, GA 30602, USADepartment of Mathematical Sciences, KAIST, Daejeon, 34141, South KoreaDepartment of Agricultural and Applied Economics, University of Georgia, Athens, GA 30602, USAMultiple previous reports have established that climate change disproportionately impacts smallholder farmers in developing countries. This study investigates the impact of climate change adaptation, defined by farmers’ decisions to adopt the improved practices to mitigate or reduce the effects of climate change, on crop revenue and revenue risk exposure. We employ the control function approach in an endogenous switching regression framework to account for selection bias. Using the household survey data from Nepal, we find that climate change adaptation positively affects crop revenue and revenue risk reduction. Specifically, climate change adaptation leads to a 21.6% increase in farm revenue and a 6.4% reduction in downside risk exposure, which are robust to several specifications. Counterfactual analysis shows the considerable heterogeneities in the outcomes among adapters and non-adapters. In particular, adapting farm households realize substantial and distinguishable gains in revenues and declines in risk levels relative to their non-adapting peer households. Our findings imply that adapting to climate change can be an effective management practice to mitigate the risks associated with climate change and increase resilience.http://www.sciencedirect.com/science/article/pii/S2666916122000305Climate change impactsClimate change adaptationControl functionCrop revenueRevenue riskNepal |
| spellingShingle | Chandra Dhakal Savin Khadka Cheolwoo Park Cesar L. Escalante Climate change adaptation and its impacts on farm income and downside risk exposure Resources, Environment and Sustainability Climate change impacts Climate change adaptation Control function Crop revenue Revenue risk Nepal |
| title | Climate change adaptation and its impacts on farm income and downside risk exposure |
| title_full | Climate change adaptation and its impacts on farm income and downside risk exposure |
| title_fullStr | Climate change adaptation and its impacts on farm income and downside risk exposure |
| title_full_unstemmed | Climate change adaptation and its impacts on farm income and downside risk exposure |
| title_short | Climate change adaptation and its impacts on farm income and downside risk exposure |
| title_sort | climate change adaptation and its impacts on farm income and downside risk exposure |
| topic | Climate change impacts Climate change adaptation Control function Crop revenue Revenue risk Nepal |
| url | http://www.sciencedirect.com/science/article/pii/S2666916122000305 |
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