Is an integrated farm more resilient against climate change? A micro-econometric analysis of portfolio diversification in African agriculture
AbstractThis paper examines whether an integrated farm that owns both crops and livestock is more resilient under global warming than a specialized farm in crops. Using around 9000 farm surveys across Africa, we explore how farmers choose one of the farm types and how the net revenue of each type varies across the range of climate in Africa. The results indicate that an integrated farm increases in number while a specialized farm decreases across Africa under climate predictions for 2060. The relative profitability of each system against each other also changes. An integrated farm becomes relatively more profitable over specialized farms half a century from now. The impacts of climate change on integrated farms range from 9% loss to 27% gain depending on climate scenarios. Behavioral models can capture portfolio diversification benefits that agro-economic models cannot measure.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Food Policy.
Volume (Year): 35 (2010)
Issue (Month): 1 (February)
Contact details of provider:
Web page: http://www.elsevier.com/locate/foodpol
Climate change Africa Integrated farm Livestock Adaptation Micro-econometrics;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Nin, Alejandro & Ehui, Simeon & Benin, Samuel, 2007. "Livestock Productivity in Developing Countries: An Assessment," Handbook of Agricultural Economics, Elsevier.
- Seo, Sung-No Niggol & Mendelsohn, Robert & Munasinghe, Mohan, 2005. "Climate change and agriculture in Sri Lanka: a Ricardian valuation," Environment and Development Economics, Cambridge University Press, vol. 10(05), pages 581-596, October.
- Levan Elbakidze & Linda Highfield & Michael Ward & Bruce A. McCarl & Bo Norby, 2009.
"Economics Analysis of Mitigation Strategies for FMD Introduction in Highly Concentrated Animal Feeding Regions,"
Review of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 31(4), pages 931-950, December.
- Elbakidze, Levan & Highfield, Linda & Ward, Michael P. & McCarl, Bruce A. & Norby, Bo, 2008. "Economics analysis of mitigation strategies for FMD introduction in highly concentrated animal feeding regions," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6162, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Fafchamps, Marcel & Udry, Christopher & Czukas, Katherine, 1998.
"Drought and saving in West Africa: are livestock a buffer stock?,"
Journal of Development Economics,
Elsevier, vol. 55(2), pages 273-305, April.
- Marcel Fafchamps & Chris Udry & Katherine Czukas, . "Drought and Saving in West Africa: Are Livestock a Buffer Stock?," Working Papers 97013, Stanford University, Department of Economics.
- Kelly, David L. & Kolstad, Charles D. & Mitchell, Glenn T., 2005. "Adjustment costs from environmental change," Journal of Environmental Economics and Management, Elsevier, vol. 50(3), pages 468-495, November.
- S. Niggol Seo & Robert Mendelsohn, 2008. "Measuring impacts and adaptations to climate change: a structural Ricardian model of African livestock management-super-1," Agricultural Economics, International Association of Agricultural Economists, vol. 38(2), pages 151-165, 03.
- Dubin, Jeffrey A & McFadden, Daniel L, 1984. "An Econometric Analysis of Residential Electric Appliance Holdings and Consumption," Econometrica, Econometric Society, vol. 52(2), pages 345-62, March.
- Harry Markowitz, 1952. "Portfolio Selection," Journal of Finance, American Finance Association, vol. 7(1), pages 77-91, 03.
- Brown, James N & Rosen, Harvey S, 1982.
"On the Estimation of Structural Hedonic Price Models,"
Econometric Society, vol. 50(3), pages 765-68, May.
- James N. Brown & Harvey S. Rosen, 1982. "On the Estimation of Structural Hedonic Price Models," NBER Technical Working Papers 0018, National Bureau of Economic Research, Inc.
- Seo, S. Niggol & Mendelsohn, Robert, 2008. "Animal husbandry in Africa: Climate change impacts and adaptations," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 2(1), March.
- Kazianga, Harounan & Udry, Christopher, 2006.
"Consumption smoothing? Livestock, insurance and drought in rural Burkina Faso,"
Journal of Development Economics,
Elsevier, vol. 79(2), pages 413-446, April.
- Harounan Kazianga & Christopher Udry, 2004. "Consumption Smoothing? Livestock, Insurance and Drought in Rural Burkina Faso," Working Papers 898, Economic Growth Center, Yale University.
- Ivar Ekeland & James J. Heckman & Lars Nesheim, 2002.
"Identifying Hedonic Models,"
American Economic Review,
American Economic Association, vol. 92(2), pages 304-309, May.
- Heckman, James J, 1979.
"Sample Selection Bias as a Specification Error,"
Econometric Society, vol. 47(1), pages 153-61, January.
- Mendelsohn, Robert & Nordhaus, William D & Shaw, Daigee, 1994. "The Impact of Global Warming on Agriculture: A Ricardian Analysis," American Economic Review, American Economic Association, vol. 84(4), pages 753-71, September.
- Pradeep Kurukulasuriya & Robert Mendelsohn & Rashid Hassan & James Benhin & Temesgen Deressa & Mbaye Diop & Helmy Mohamed Eid & K. Yerfi Fosu & Glwadys Gbetibouo & Suman Jain & Ali Mahamadou & Renneth, 2006. "Will African Agriculture Survive Climate Change?," World Bank Economic Review, World Bank Group, vol. 20(3), pages 367-388.
- Delgado, Christopher L. & Rosegrant, Mark W. & Steinfeld, Henning & Ehui, Simeon K. & Courbois, Claude, 1999.
"Livestock to 2020: the next food revolution,"
2020 vision briefs
61, International Food Policy Research Institute (IFPRI).
- Udry, Christopher, 1995. "Risk and Saving in Northern Nigeria," American Economic Review, American Economic Association, vol. 85(5), pages 1287-1300, December.
- Jin, Yanhong H. & McCarl, Bruce A., 2006. "Animal Disease Related Pre-event Investment and Post-event Compensation: A Multi-agent Problem," 2006 Annual meeting, July 23-26, Long Beach, CA 21216, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Henk A. J. Moll, 2005. "Costs and benefits of livestock systems and the role of market and nonmarket relationships," Agricultural Economics, International Association of Agricultural Economists, vol. 32(2), pages 181-193, 03.
- Seo, S. Niggol, 2011. "Is an integrated farm more resilient against climate change? A micro-econometric analysis of portfolio diversification in African agriculture: Reply," Food Policy, Elsevier, vol. 36(3), pages 450-451, June.
- Browne, Natalie & Kingwell, Ross & Behrendt, Ralph & Eckard, Richard, 2013. "The relative profitability of dairy, sheep, beef and grain farm enterprises in southeast Australia under selected rainfall and price scenarios," Agricultural Systems, Elsevier, vol. 117(C), pages 35-44.
- Seo, S. Niggol, 2011. "An analysis of public adaptation to climate change using agricultural water schemes in South America," Ecological Economics, Elsevier, vol. 70(4), pages 825-834, February.
- Seo, S. Niggol & McCarl, Bruce A. & Mendelsohn, Robert, 2010. "From beef cattle to sheep under global warming? An analysis of adaptation by livestock species choice in South America," Ecological Economics, Elsevier, vol. 69(12), pages 2486-2494, October.
- Lybbert, Travis J. & Sumner, Daniel A., 2012. "Agricultural technologies for climate change in developing countries: Policy options for innovation and technology diffusion," Food Policy, Elsevier, vol. 37(1), pages 114-123.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.