Weather shocks and cropland decisions in rural Mozambique

Submitted by NENRE Concepcion on

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 weather shocks.

Agriculture, Climate Change

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

Submitted by NENRE Concepcion on

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.

Climate Change, Water

Environmental risks of shale gas development in China

Submitted by Anonymous (not verified) on

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.

Energy

Is the information on fines relevant?

Submitted by NENRE Concepcion on

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.

Experiments, Policy Design

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

Submitted by Anonymous (not verified) on

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.

Water

Adaptation to climate change in Sub-Saharan agriculture: assessing the evidence and rethinking the drivers

Submitted by Anonymous (not verified) on
EfD Authors:

In this paper, after a review of the evolution of the literature on climate change economics in agriculture, I present some evidence of the impact of different moments of the distribution of rainfall on farmers risk aversion.

It is found that while more rainfall is negatively associated with the probability of observing risk aversion, rainfall variability is positively correlated. This result highlights an important behavioural dimension of climatic factors.

Climate Change

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

Submitted by Anonymous (not verified) on

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.

Climate Change

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

Submitted by Anonymous (not verified) on

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.

Agriculture

The influence of spouses on household decision making under risk: an experiment in rural China

Submitted by Anonymous (not verified) on

We study household decision making in a high-stakes experiment with a random sample of households in rural China. Spouses have to choose between risky lotteries, first separately and then jointly.

Experiments, Policy Design

Risk Perception, Choice of Drinking Water, and Water Treatment Evidence from Kenyan Towns

Submitted by Anonymous (not verified) on

This study uses 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 their choice of main drinking water source.

Water