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How do African households adapt to climate change? Evidence from Malawi

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  • Cook, Aaron M.
  • Ricker-Gilbert, Jacob E.
  • Sesmero, Juan P.

Abstract

We use three waves of national representative household level panel data from Malawi to employ a structural model to estimate how households make land and labor allocation decisions in response to climate change. We first model the allocation of land to improved maize varieties as a function of precipitation history, input and output prices, household characteristics and extension advice and then estimate the welfare benefits associated with this decision in a household net income equation. This second stage also reveals the extent to which the household shift labor off-farm as total growing season precipitation fluctuates. We find that a 1% increase in intra-seasonal precipitation variability reduces household income by 1.5%. This effect falls to 1.3% after we account for the expected adjustment in improved maize adoption.

Suggested Citation

  • Cook, Aaron M. & Ricker-Gilbert, Jacob E. & Sesmero, Juan P., 2013. "How do African households adapt to climate change? Evidence from Malawi," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150507, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea13:150507
    DOI: 10.22004/ag.econ.150507
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    Consumer/Household Economics; Environmental Economics and Policy; International Relations/Trade;
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