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Cash Transfers Enable Households to Cope with Agricultural Production and Price Shocks: Evidence from Zambia

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  • Kathleen Lawlor
  • Sudhanshu Handa
  • David Seidenfeld

Abstract

Climate change is projected to dramatically disrupt rainfall patterns and agricultural yields in sub-Saharan Africa. These shocks to food production can mire farming households in poverty traps. This study investigates whether unconditional cash transfers can help households cope with agricultural production and price shocks. We find that cash empowers poor, rural households facing these negative shocks to employ coping strategies typically used by the non-poor and enables them to substantially increase their food consumption and overall food security. Extending relatively small cash payments unconditionally to the rural poor is a powerful policy option for fostering climate-resilient development.

Suggested Citation

  • Kathleen Lawlor & Sudhanshu Handa & David Seidenfeld, 2019. "Cash Transfers Enable Households to Cope with Agricultural Production and Price Shocks: Evidence from Zambia," Journal of Development Studies, Taylor & Francis Journals, vol. 55(2), pages 209-226, February.
    • Handle: RePEc:taf:jdevst:v:55:y:2019:i:2:p:209-226
    DOI: 10.1080/00220388.2017.1393519
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    Cited by:

    1. Dietrich, Stephan & Schmerzeck, Georg, 2020. "For real? Income and non-income effects of cash transfers on the demand for food," MERIT Working Papers 2020-006, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. Xing Ji & Jingwen Xu & Hongxiao Zhang, 2022. "How Does China’s New Rural Pension Scheme Affect Agricultural Production?," Agriculture, MDPI, vol. 12(8), pages 1-23, July.
    3. Gao, Jianfeng & Mills, Bradford F., 2021. "Influence of weather shocks and coping strategies on food consumption: Evidence from rural Niger," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 16(3), September.
    4. Phemelo Tamasiga & Helen Onyeaka & Adenike Akinsemolu & Malebogo Bakwena, 2023. "The Inter-Relationship between Climate Change, Inequality, Poverty and Food Security in Africa: A Bibliometric Review and Content Analysis Approach," Sustainability, MDPI, vol. 15(7), pages 1-35, March.
    5. Ruerd Ruben, 2024. "What Smallholders Want: Effective Strategies for Rural Poverty Reduction," Sustainability, MDPI, vol. 16(13), pages 1-16, June.
    6. Nawaz, Saima & Iqbal, Nasir, 2021. "How cash transfers program affects environmental poverty among ultra-poor? Insights from the BISP in Pakistan," Energy Policy, Elsevier, vol. 148(PB).
    7. Strupat, Christoph & Rukundo, Emmanuel Nshakira & Reichert, Arndt R., 2024. "The impact of shock-responsive social cash transfers: Evidence from an aggregate shock in Kenya," Ruhr Economic Papers 1073, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.

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