We examine the driving forces behind farm households’ decisions to adapt to climate change, and the impact of adaptation on farm households’ food productivity.
We estimate a simultaneous equations model with endogenous switching to account for the heterogeneity in the decision to adapt or not, and for unobservable characteristics of farmers and their farm. Access to credit, extension and information are found to be the main drivers behind adaptation. We find that adaptation increases food productivity, that the farm households that did not adapt would benefit the most from adaptation.
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