Does Government Aid Crowd Out Thai Rice Farmers’ Adaptation?

by Phumsith Mahasuweerachai, Rawadee Jarungrattanapong, Kansinee Guntawongwan and Piyaluk Buddhawongsa

Flooding in Thailand has disrupted many sectors, one of the most affected being small-scale farmers. To aid farmers who fall victim to flooding, the Thai government financially compensates them for the damages incurred by covering part of their cropping cost. However, as suggested by some studies, there is a tendency for this type of government aid to crowd out farmer adaptation. An EEPSEA study proved this true for rice farmers in northeastern Thailand. Hence, it is suggested that it may be more prudent not to send out the perception that the government will step in every time there is a disaster so as not to encourage a dependent attitude in the farmers.

  • Publication Year: 2013
  • Country: Thailand
  • Sector: Others
  • Type: Cross-Country Research Grant
  • Research Area: Behavioral Economics and Social Capital
  • Research Topic: Cooperative Behavior, Public Good and Trust
  • Analytical Framework: Behavioral/Experimental Economics
Economy and Environment Program for Southeast Asia