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Risk

2018-06-24

Weather shocks and cropland decisions in rural Mozambique

Economic development in low income settings is often associated with an expansion of higher-value agricultural activities. Since these activities often bring new risks, an understanding of cropland decisions and how these interact with shocks is valuable. This paper uses data from Mozambique to examine the effect of weather shocks on cropland decisions. We account for the bounded nature of land shares and estimate a Pooled Fractional Probit model for panel data. Our results show that crop choice is sensitive to past

2016-06-05

Water Variability and the Economic Impacts on Small-Scale Farmers. A Farm Risk-Based Integrated Modelling Approach

Strengthening the planning of hydrological resources to optimize the use ofwater in agriculture is a key adaptation measure of the Chilean agricultural sector to cope with future climate change. To address this challenge, decision-makers call for tools capable of representing farmers’ behaviours under the likely stresses generated by future climate conditions. In this context, of special concern are the effects of water variability on small-scale farmers, who commonly operate with narrow profit margins and who lack access to financial resources and technological knowledge.

2014-12-26

Environmental risks of shale gas development in China

Shale gas development in China can generate great potential economic benefits, but also poses serious environmental risks. In this paper, we offer a macro assessment of the environmental risks of shale gas development in China.

2014-12-05

Is the information on fines relevant?

Using a series of laboratory economic experiments, we study the effect of information regarding the amount of the fine on the individual decision to violate an emission standard. Specifically, the analysis considers variations in the information available for the regulated subjects regarding the amount of the monetary sanction, as well as variations in the stringency in the inspection effort by the regulator.

2014-06-06

Risk perception, choice of drinking water and water treatment: Evidence from Kenyan towns

This study used household survey data from four Kenyan towns to examine the effect of households' characteristics and risk perceptions on their decision to treat/filter water as well as on their choice of main drinking water source. Because the two decisions may be jointly made by the household, a seemingly unrelated bivariate probit model was estimated. It turned out that treating non-piped water and using piped water as a main drinking water source were substitutes.

2014-04-21

Managing Environmental Risk in Presence of Climate Change: The Role of Adaptation in the Nile Basin of Ethiopia

This study investigates the impact of climate change adaptation on farm households’ downside risk exposure in the Nile Basin of Ethiopia. The analysis relies on a moment-based specification of the stochastic production function. We use an empirical strategy that accounts for the heterogeneity in the decision on whether to adapt or not, and for unobservable characteristics of farmers and their farm.

2013-11-06

Estimating the potential economic benefits of adopting Bt cotton in selected COMESA countries

Cotton farmers in the Common Market for Eastern and Southern Africa (COMESA) face pest challenges, the most destructive of which is the African bollworm (Helicoverpa armigera). Reduction in these pest infestations can increase yields and improve welfare of cotton producers, consumers, and innovators. Currently, the control of bollworms in this region is done through application pesticides, which is a costly exercise in terms of cost of pesticides, spray equipment, and labor.

2012-12-12

    Group decision making under risk: An experiment with student couples

    In an experiment, we study risk-taking of cohabitating student couples, finding that couples’ decisions are closer to risk-neutrality than single partners’ decisions. This finding is similar to earlier experiments with randomly assigned groups, corroborating external validity of earlier results.