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The welfare effects of crop biodiversity as an adaptation to climate shocks in Kenya

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  • Bozzola, Martina
  • Smale, Melinda

Abstract

This paper investigates the effects of crop biodiversity on farm income and production risk using a large panel dataset of rural households in Kenya. We consider three different metrics of in situ (on-farm) crop diversification (richness, evenness and concentration). We apply a partial moments-based model to test the effects of each strategy on welfare defined as expected crop income, variability (variance) and downside risk (skewness). Our comprehensive econometric approach differentiates climatic shocks, weather and climate change. The results suggest that the benefits from greater diversification in terms of enhanced land productivity and lower production costs could surpass the foregone benefit from greater efficiency associated with more concentrated production systems. Crop richness and evenness each reduce exposure to crop income risk, especially for more vulnerable farmers who produce below the expected revenue threshold. Farmers who rely on greater crop specialization, on the contrary, are more exposed to crop income risk.

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  • Bozzola, Martina & Smale, Melinda, 2020. "The welfare effects of crop biodiversity as an adaptation to climate shocks in Kenya," World Development, Elsevier, vol. 135(C).
    • Handle: RePEc:eee:wdevel:v:135:y:2020:i:c:s0305750x20301911
    DOI: 10.1016/j.worlddev.2020.105065
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    3. Yegbemey, Rosaine Nérice & Bensch, Gunther & Vance, Colin, 2021. "Weather information for smallholders: Evidence from a pilot field experiment in Benin," Ruhr Economic Papers 930, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
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    6. Olagunju, Kehinde Oluseyi & Olagunju, Kehinde Ademola & Ogunniyi, Adebayo Isaiah & Omotayo, Abiodun Olusola & Oyetunde-Usman, Zainab, 2023. "To own or not to own? Land tenure security and production risk in small-scale farming," Land Use Policy, Elsevier, vol. 127(C).
    7. Makate, Clifton & Angelsen, Arild & Holden, Stein Terje & Westengen, Ola Tveitereid, 2022. "Crops in crises: Shocks shape smallholders' diversification in rural Ethiopia," World Development, Elsevier, vol. 159(C).
    8. Yegbemey, Rosaine N. & Bensch, Gunther & Vance, Colin, 2023. "Weather information and agricultural outcomes: Evidence from a pilot field experiment in Benin," World Development, Elsevier, vol. 167(C).
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    12. Masanori Matsuura & Yir‐Hueih Luh & Abu Hayat Md. Saiful Islam, 2023. "Weather shocks, livelihood diversification, and household food security: Empirical evidence from rural Bangladesh," Agricultural Economics, International Association of Agricultural Economists, vol. 54(4), pages 455-470, July.
    13. Sodjahin, Romaric & Carpentier, Alain & Koutchade, Obafèmi Philippe & Femenia, Fabienne, 2022. "On the economic value of the agronomic effects of crop diversification for farmers: Estimation based on farm cost accounting data," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322295, Agricultural and Applied Economics Association.
    14. Peter Agamile & Ralitza Dimova & Jennifer Golan, 2021. "Crop Choice, Drought and Gender: New Insights from Smallholders’ Response to Weather Shocks in Rural Uganda," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(3), pages 829-856, September.
    15. Sibbir Ahmad & Melinda Smale & Veronique Theriault & Eugenie Maiga, 2023. "Input subsidies and crop diversity on family farms in Burkina Faso," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(1), pages 237-254, February.
    16. Islam, Masanori Matsuura Yir-Huieh Luh Abu Hayat Md. Saiful, 2021. "Climate Variability, Livelihood Diversification, and Household Food Security in Bangladesh," 2021 ASAE 10th International Conference (Virtual), January 11-13, Beijing, China 329402, Asian Society of Agricultural Economists (ASAE).

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    More about this item

    Keywords

    Crop diversification; Smallholder farmer; Vulnerability; Kenya;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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