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Extreme heat and rural household adaptation: Evidence from Northeast China

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  • Cui, Xiaomeng
  • Tang, Qu

Abstract

More extreme heat events are expected under climate change, posing threats to food production as well as the lives of agriculture-dependent rural households. Using a detailed panel of rural households in an agricultural region of China, we find extreme heat substantially decreases crop production and lowers households’ agricultural returns. Nevertheless, the households successfully smooth their consumption contemporaneously by utilizing precautionarily saved buffers (liquid financial assets and crop stocks), especially among those who regularly hold these buffers. Their future expenditures are also largely unaffected. This adaptability of consumption smoothing discourages within-season adjustments in variable inputs and productive assets. Still, extreme heat guides impacted households toward a more diverse but less risky crop portfolio in later years.

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  • Cui, Xiaomeng & Tang, Qu, 2024. "Extreme heat and rural household adaptation: Evidence from Northeast China," Journal of Development Economics, Elsevier, vol. 167(C).
    • Handle: RePEc:eee:deveco:v:167:y:2024:i:c:s0304387823001992
    DOI: 10.1016/j.jdeveco.2023.103243
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    More about this item

    Keywords

    Climate change; Rural household; Environmental adaptation; Consumption smoothing; Productive adjustments;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • 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
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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