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Adaptation to Natural Disasters Through the Agricultural Land Rental Market: Evidence from Bangladesh

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Abstract

We examine the effects of natural disaster exposure on agricultural households who simultaneously make rent-in and rent-out decisions in the land rental market. Our econometric approach accounts for the effects of disaster exposure both on the adjustments in the quantity of operated land (i.e. extensive margin) and agricultural yield conditional on the land quantity adjustments (i.e. intensive margin), based on selectivity-corrected samples of rental market participants. Employing a household survey dataset from Bangladesh, we find that farmers were able to ameliorate their losses from exposure to disasters by optimizing their operational farm size through participation in the land rental market. These results are robust to alternative specifications. This suggests that the land rental market may be an effective instrument reducing disaster risk, and post-disaster policies should take into account this role more systematically.

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  • Eskander, Shaikh & Barbier, Edward, 2016. "Adaptation to Natural Disasters Through the Agricultural Land Rental Market: Evidence from Bangladesh," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235648, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea16:235648
    DOI: 10.22004/ag.econ.235648
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    Cited by:

    1. Shaikh M. S. U. Eskander & Sam Fankhauser, 2022. "Income Diversification and Income Inequality: Household Responses to the 2013 Floods in Pakistan," Sustainability, MDPI, vol. 14(1), pages 1-12, January.
    2. Zhang, Hongliang & Mu, Jianhong E. & McCarl, Bruce A., 2018. "Adaptation to climate change via adjustment in land leasing: Evidence from dryland wheat farms in the U.S. Pacific Northwest," Land Use Policy, Elsevier, vol. 79(C), pages 424-432.
    3. Eskander, Shaikh M.S.U. & Barbier, Edward B., 2017. "Tenure Security, Human Capital and Soil Conservation in an Overlapping Generation Rural Economy," Ecological Economics, Elsevier, vol. 135(C), pages 176-185.
    4. Md. Sazedur Rahman* & Md. Ashfikur Rahman, 2019. "Impacts of Climate Change on Crop Production in Bangladesh: A Review," Journal of Agriculture and Crops, Academic Research Publishing Group, vol. 5(1), pages 6-14, 01-2019.
    5. Eskander, Shaikh M.S.U. & Fankhauser, Samuel & Jha, Shikha, 2016. "Do Natural Disasters Change Savings and Employment Choices? Evidence from Bangladesh and Pakistan," ADB Economics Working Paper Series 505, Asian Development Bank.
    6. Sam Fankhauser, 2017. "Adaptation to Climate Change," Annual Review of Resource Economics, Annual Reviews, vol. 9(1), pages 209-230, October.

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    Keywords

    Agricultural and Food Policy; Community/Rural/Urban Development; Environmental Economics and Policy; Land Economics/Use; Risk and Uncertainty;
    All these keywords.

    JEL classification:

    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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