Scandinavian Working Papers in Economics
EfD Discussion Paper,
Environment for Development, University of Gothenburg
No 20-4: Weather at Different Growth Stages, Multiple Climate Smart Practices and Farm Level Risks: Panel Data Evidence from the Nile Basin of Ethiopia
Hailemariam Teklewold () and Alemu Mekonnen ()
Additional contact information
Hailemariam Teklewold: Environment and Climate Research Center, Policy Studies Institute, Postal: Environment and, Climate Research Center, Policy Studies Institute, Addis Ababa, Ethiopia.
Alemu Mekonnen: Addis Ababa University, Postal: School of Economics of Addis Ababa University
Abstract: The present study investigates the effects of combinations of climate smart agricultural practices on risk exposure and cost of risk. We do this by examining the different risk components – mean, variance, skewness, and kurtosis – in a multinomial treatment effects framework by controlling weather variables for key stages of crop growth. We found that adoption of combinations of practices is widely viewed as a risk reducing insurance strategy that can increase farmers’ resilience to production risk. The hypothesis of equality of weather parameters across crop development stages is also rejected. The heterogeneous effects of weather across crop growth stages have important implications for climate change adaptation to maximize quasi-option value. For a country that has a vision to build a climate resilient economy, this knowledge is valuable to identify a combination of climate smart practices that minimizes the production risk under variable weather conditions.
Keywords: risk; weather; crop growth cycles; multiple practices; impact
Language: English
34 pages, March 1, 2020
Full text files
MS%20935%20DP%2020-04.pdfFull text
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