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The consequences of cyclone and seasonal crop risks for wealth and technology adoption in rural Mozambique

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  • Larson, D.

Abstract

In this paper we examine the consequences of extreme weather events on agricultural livelihood choices and welfare outcomes among rural households in Mozambique. We do so by first building a unique historical record of local (enumeration-area) weather event that we match with household survey data. We build the event history by drawing on daily spatial datasets for rainfall and temperature from 1981 to 2015. We build a spatial history of agricultural droughts in Mozambique that account for regional differences in growing seasons. We also utilize for the first time a dataset that maps the impact of all named tropical storms affecting Mozambique from 1968 to 2015. We use geo-referenced household data from 7,400 households in Mozambique to identify production technology choices and measure asset accumulations. Exploiting spatial cross-sectional variations, we show how weather risks adversely affect household choices about production technologies and input use. We show how past exposure to extreme weather events, including typhoons and droughts, adversely impact productive stock accumulations and household wealth.

Suggested Citation

  • Larson, D., 2018. "The consequences of cyclone and seasonal crop risks for wealth and technology adoption in rural Mozambique," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 275916, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae18:275916
    DOI: 10.22004/ag.econ.275916
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    References listed on IDEAS

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    1. Donald F. Larson & Jock R. Anderson & Panos Varangis, 2004. "Policies on Managing Risk in Agricultural Markets," The World Bank Research Observer, World Bank, vol. 19(2), pages 199-230.
    2. Jerry R. Skees & Panos Varangis & Donald F. Larson & Paul Siegel, 2002. "Can Financial Markets be Tapped to Help Poor People Cope with Weather Risks?," WIDER Working Paper Series DP2002-23, World Institute for Development Economic Research (UNU-WIDER).
    3. Corey Lesk & Pedram Rowhani & Navin Ramankutty, 2016. "Influence of extreme weather disasters on global crop production," Nature, Nature, vol. 529(7584), pages 84-87, January.
    4. Niels Andela & Guido R. van der Werf, 2014. "Recent trends in African fires driven by cropland expansion and El Niño to La Niña transition," Nature Climate Change, Nature, vol. 4(9), pages 791-795, September.
    5. Harold Alderman & Christina H. Paxson, 1994. "Do the Poor Insure? A Synthesis of the Literature on Risk and Consumption in Developing Countries," International Economic Association Series, in: Edmar L. Bacha (ed.), Economics in a Changing World, chapter 3, pages 48-78, Palgrave Macmillan.
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    Keywords

    Crop Production/Industries; Research and Development/Tech Change/Emerging Technologies;

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