Skip to main content

2009-09-21 | EfD Discussion Paper

The Effect of Risk, Ambiguity, and Coordination on Farmers´Adaptation to Climate Change: A Framed Field Experiment

Alpízar, Francisco, Fredrik Carlsson and María Angélica Naranjo Barrantes. 2009. “The Effect of Risk, Ambiguity, and Coordination on Farmers´Adaptation to Climate Change: A Framed Field Experiment.” EfD Discussion Paper 09.
Download reference

The authors used a framed field experiment with coffee farmers in Costa Rica after tropical storm Alma to explore how farmers react to different levels of risk to income and productive means from extreme weather under measurable and unmeasurable uncertainty. They also examined whether investment costs to reduce vulnerability exhibit economies of scope.

Despite expected high-risk aversion, farmers made tradeoffs under different risk levels and frequently chose safe options with unknown risk. Farmers also frequently communicated to coordinate their decisions and achieve lower adaptation costs.