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Ambiguity Aversion And Individual Adaptation To Climate Change: Evidence From A Farmer Survey In Northeastern Thailand

Author

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  • NAGISA SHIIBA

    (Institute for Global Environmental Strategies, 2108-11, Kamiyamaguchi, Hayama, Kanagawa 240-0115, Japan)

  • HIDE-FUMI YOKOO

    (��Graduate School of Economics, Hitotsubashi University, 2-1 Naka, Kunitachi, Tokyo 186-8601, Japan)

  • VORAVEE SAENGAVUT

    (��Faculty of Economics, Khon Kaen University, 123 Mittraphap Road, Muang District, Khon Kaen, Thailand)

  • SIRAPRAPA BUMRUNGKIT

    (��Faculty of Economics, Khon Kaen University, 123 Mittraphap Road, Muang District, Khon Kaen, Thailand)

Abstract

Understanding the triggers of individual adaptation behavior is critical for empowering those who are highly vulnerable to climate change. This study explores the effect of ambiguity aversion on adaptation behaviors in the context of climate change. We conduct a field survey among 230 rice farmers in northeastern Thailand to examine the association between elicited ambiguity aversion and the implementation of climate change adaptation. We find that ambiguity aversion does not encourage farmers’ adaptation behaviors and can even discourage the uptake of adaptation strategies. The role of ambiguity aversion varies depending on the characteristics of the adaptation strategy: ambiguity-averse farmers are less likely to adopt adaptation strategies that entail shifts from the status-quo. A deliberate approach is needed to understand farmers’ adaptation behaviors outside the laboratory setting and to reduce ambiguity in the results concerning adaptation to increasing climate risk.

Suggested Citation

  • Nagisa Shiiba & Hide-Fumi Yokoo & Voravee Saengavut & Siraprapa Bumrungkit, 2023. "Ambiguity Aversion And Individual Adaptation To Climate Change: Evidence From A Farmer Survey In Northeastern Thailand," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 14(01), pages 1-29, February.
  • Handle: RePEc:wsi:ccexxx:v:14:y:2023:i:01:n:s2010007823500057
    DOI: 10.1142/S2010007823500057
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    More about this item

    Keywords

    Ambiguity aversion; climate change adaptation; Thailand; weather index insurance;
    All these keywords.

    JEL classification:

    • 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

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