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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.

Suggested Citation

  • Shaikh Eskander & Edward Barbier, 2016. "Adaptation to natural disasters through the agricultural land rental market: evidence from Bangladesh," GRI Working Papers 236, Grantham Research Institute on Climate Change and the Environment.
  • Handle: RePEc:lsg:lsgwps:wp236
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    References listed on IDEAS

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    Cited by:

    1. Hongliang Zhang & Jianhong E. Mu & Bruce A. McCarl, 2018. "Adaptation to Climate Change via Adjustment in Land Leasing: Evidence from Dryland Wheat Farms in the U.S. Pacific Northwest," IRENE Working Papers 18-02, IRENE Institute of Economic Research.
    2. repec:arp:jacarp:2019:p:6-14 is not listed on IDEAS
    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. 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.
    5. Sam Fankhauser, 2016. "Adaptation to climate change," GRI Working Papers 255, Grantham Research Institute on Climate Change and the Environment.

    More about this item

    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
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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