Farmers' adaptation choices under risk and uncertainty due to climate variability

Student name: Ms Shivani Wadehra
Guide: Dr Arabinda Mishra
Year of completion: 2012
Host Organisation: The Energy and Resources Institute (TERI)

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Abstract:

This study deals with climate change adaptations that have been made by farmers in the Jalna district of Maharashtra, India. With agriculture being the mainstay of the farmers there, adaptation is imperative for them. The study applies “bottom up” approach looking at insights from the farmers. Farm level data was collected 110 households. Multinomial Logistic regression was used to determine the determinants to farmers’ risk attitudes. A Heckman probit model was used to examine the determinants of adaptation to climate change and variability.Drip Irrigation was a strategy that was categorically looked at. Access to extension was negatively related and holding size was positively related to the uptake of drip irrigation. Attitude to risk did not turn out to be a significant variable when looking at the uptake of drip irrigation as an adaptation strategy.

Keywords: Adaptation Strategies, CRRA utility, perception, Risk aversion, Sample selectivity bias.