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Climate, crops, and forests: a pan-tropical analysis of household income generation

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  • Wunder, Sven
  • Noack, Frederik
  • Angelsen, Arild

Abstract

Rural households in developing countries depend on crops, forest extraction and other income sources for their livelihoods, but these livelihood contributions are sensitive to climate change. Combining socioeconomic data from about 8,000 smallholder households across the tropics with gridded precipitation and temperature data, we find that households have the highest crop income at 21°C temperature and 2,000 mm precipitation. Forest incomes increase on both sides of this agricultural maximum. We further find indications that crop income declines in response to weather shocks while forest income increases, suggesting that households may cope by reallocating inputs from agriculture to forests. Forest production may thus be less sensitive than crop production to climatic fluctuations, gaining comparative advantage in extreme climates and under weather anomalies. This suggests that well-managed forests might help poor rural households to cope with and adapt to future climate change.

Suggested Citation

  • Wunder, Sven & Noack, Frederik & Angelsen, Arild, 2018. "Climate, crops, and forests: a pan-tropical analysis of household income generation," Environment and Development Economics, Cambridge University Press, vol. 23(3), pages 279-297, June.
    • Handle: RePEc:cup:endeec:v:23:y:2018:i:03:p:279-297_00
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    Cited by:

    1. Muhammad Abrar ul Haq & Jayendira P. Sankar & Farheen Akram & Muhammad Siddique, 2022. "The role of farmers’ attitude towards their resources to alleviate rural household poverty," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(4), pages 2133-2155, August.
    2. Paglialunga, Elena & Coveri, Andrea & Zanfei, Antonello, 2022. "Climate change and within-country inequality: New evidence from a global perspective," World Development, Elsevier, vol. 159(C).
    3. Jagger, Pamela & Cheek, Jennifer Zavaleta & Miller, Daniel & Ryan, Casey & Shyamsundar, Priya & Sills, Erin, 2022. "The Role of Forests and Trees in Poverty Dynamics," Forest Policy and Economics, Elsevier, vol. 140(C).
    4. Manners, Rhys & Varela-Ortega, Consuelo, 2018. "The Role of Decision-making in Ecosystem Service Trade-offs in Lowland Bolivia's Amazonian Agricultural Systems," Ecological Economics, Elsevier, vol. 153(C), pages 31-42.
    5. Elena Paglialunga & Andrea Coveri & Antonello Zanfei, 2020. "Climate change and inequality in a global context. Exploring climate induced disparities and the reaction of economic systems," Working Papers 2003, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2020.
    6. Suresh, Kanesh & Khanal, Uttam & Wilson, Clevo & Managi, Shunsuke & Quayle, Annette & Santhirakumar, Samithamby, 2021. "An economic analysis of agricultural adaptation to climate change impacts in Sri Lanka: An endogenous switching regression analysis," Land Use Policy, Elsevier, vol. 109(C).
    7. Miller, Daniel C. & Hajjar, Reem, 2020. "Forests as pathways to prosperity: Empirical insights and conceptual advances," World Development, Elsevier, vol. 125(C).

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