Farmers’ Adaptation to Climate Change and Their Risk Preferences, Yongqaio District, China

by Jin Jianjun, Gao Yiwei, Wang Xiaomin, Pham Khanh Nam

This study set out to identify the major methods used by farmers in Yongqiao District, China to adapt to climate change, and determine which factors affect their choice of adaptation measures. Farmers’ risk preferences play an important role in agricultural production decisions. Thus, this study also characterized the risk attitudes among Yongqiao farmers and determined how these risk attitudes are related to their adaptation decisions. Most farmers in the study area were aware of climate change and took measures to protect their livelihoods against perceived changes in climate. The risk experiment result showed that the representative subjects were risk-averse, and that women were more risk averse than men. The relationships between farmers’ risk preferences and different climate change adaptation strategies were different. Farmers’ risk aversion was negatively and significantly related to adaptation strategies regarding planting new crop varieties and adopting new technology; but it had a significantly positive effect on purchasing wheat drought weather index insurance. Results also showed that gender, level of education, farming experience, farm size, household income, and perceptions of the impact of climate change influenced farmers’ decisions to adapt.

  • Publication Year: 2015
  • Country: China
  • Research Area: Behavioral Economics and Social Capital
  • Research Topic: Adaptation Practices/Projects
  • Analytical Framework: Behavioral/Experimental Economics
Economy and Environment Program for Southeast Asia