IDEAS home Printed from https://ideas.repec.org/p/sol/wpaper/2013-225672.html
   My bibliography  Save this paper

Microfinance and climate change: threats and opportunities, the case of Brazil’s largest rural MFIs, Agroamigo and Cresol

Author

Listed:
  • Rafael Moser
  • Davide Forcella
  • Lauro Emilio Gonzales Farias

Abstract

This paper reports a cross-case study of the interface between rural microfinance and climate change in Brazil. We use a simple theoretical framework to analyse climate change opportunities and threats of Brazil’s largest rural microfinance institutions, Agroamigo and Cresol, along three main metadimensions: economic, financial and additional services. Our analysis focuses on vulnerability and adaptation to climate change and, to a lesser extent, mitigation. As proxy for climate change effects on clients and institutions, we use the recent droughts and floods affecting some of the areas of operation of these MFIs. We argue that the absence of a combination of climate change strategies in MFIs operating in weather hazard prone regions may result in greater and additional credit risks for their portfolios and a missing opportunity for these players to support their clients better respond to climate change impacts. The case studies under scrutiny corroborate our hypothesis.

Suggested Citation

  • Rafael Moser & Davide Forcella & Lauro Emilio Gonzales Farias, 2016. "Microfinance and climate change: threats and opportunities, the case of Brazil’s largest rural MFIs, Agroamigo and Cresol," Working Papers CEB 16-010, ULB -- Universite Libre de Bruxelles.
  • Handle: RePEc:sol:wpaper:2013/225672
    as

    Download full text from publisher

    File URL: https://dipot.ulb.ac.be/dspace/bitstream/2013/225672/3/wp16010.pdf
    File Function: Œuvre complète ou partie de l'œuvre
    Download Restriction: no

    References listed on IDEAS

    as
    1. Agrawala, Shardul & Carraro, Maelis, 2010. "Assessing the Role of Microfinance in Fostering Adaptation to Climate Change," Sustainable Development Papers 92709, Fondazione Eni Enrico Mattei (FEEM).
    2. Marion Allet & Marek Hudon, 2015. "Green Microfinance: Characteristics of Microfinance Institutions Involved in Environmental Management," Journal of Business Ethics, Springer, vol. 126(3), pages 395-414, February.
    3. Stern,Nicholas, 2007. "The Economics of Climate Change," Cambridge Books, Cambridge University Press, number 9780521700801.
    4. Marion Allet, 2011. "Measuring the environmental performance of microfinance," Working Papers CEB 11-045, ULB -- Universite Libre de Bruxelles.
    5. Shardul Agrawala & Maëlis Carraro, 2010. "Assessing the Role of Microfinance in Fostering Adaptation to Climate Change," Working Papers 2010.82, Fondazione Eni Enrico Mattei.
    6. Ahmed , Syud Amer & Diffenbaugh, Noah S. & Hertel , Thomas W. & Lobell, David B. & Ramankutty, Navin & Rios, Ana R. & Rowhani, Pedram, 2009. "Climate volatility and poverty vulnerability in Tanzania," Policy Research Working Paper Series 5117, The World Bank.
    7. Marion Allet, 2012. "Why do microfinance institutions go green?," Working Papers CEB 12-015, ULB -- Universite Libre de Bruxelles.
    8. Lucas Bretschger & Simone Valente, 2011. "Climate Change and Uneven Development," Scandinavian Journal of Economics, Wiley Blackwell, vol. 113(4), pages 825-845, December.
    9. Shardul Agrawala & Maëlis Carraro, 2010. "Assessing the Role of Microfinance in Fostering Adaptation to Climate Change," OECD Environment Working Papers 15, OECD Publishing.
    10. Lijphart, Arend, 1971. "Comparative Politics and the Comparative Method," American Political Science Review, Cambridge University Press, vol. 65(3), pages 682-693, September.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Climate Change Adaptation; Climate Change Vulnerability; Agricultural Microfinance; Rural Microfinance; Green Microfinance; Climatic Risk; Credit Risk; Brazil; Agroamigo; Cresol;

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sol:wpaper:2013/225672. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Benoit Pauwels). General contact details of provider: http://edirc.repec.org/data/cebulbe.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.