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Peer effects and the choice of adaptation strategies

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  • Salvatore Di Falco
  • Angela Doku
  • Avichal Mahajan

Abstract

This paper analyzes the impact of peer choices on the decision to adapt to climate change in rural Ethiopia. Two IVs are employed (peer‐of‐peer choices and peer‐of‐peer information sources) in order to tackle the issue of endogeneity. Through the use of a 3‐year panel of farmers in the Nile Basin region, we find that peer choices positively affect the uptake of different adaptation strategies. A 10 percentage point increase in the share of peers using a specific strategy translates to an increase in the likelihood of adaptation between approximately 7% and 14%. This emphasizes the importance of social networks to achieve adaptation to climate change in sub‐Saharan Africa.

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  • Salvatore Di Falco & Angela Doku & Avichal Mahajan, 2020. "Peer effects and the choice of adaptation strategies," Agricultural Economics, International Association of Agricultural Economists, vol. 51(1), pages 17-30, January.
    • Handle: RePEc:bla:agecon:v:51:y:2020:i:1:p:17-30
    DOI: 10.1111/agec.12538
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    6. Emediegwu, Lotanna E. & Wossink, Ada & Hall, Alastair, 2022. "The impacts of climate change on agriculture in sub-Saharan Africa: A spatial panel data approach," World Development, Elsevier, vol. 158(C).
    7. Phu Nguyen-Van & Anne Stenger & Tuyen Tiet, 2021. "Social incentive factors in interventions promoting sustainable behaviors: A meta-analysis," PLOS ONE, Public Library of Science, vol. 16(12), pages 1-27, December.
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