Climate change, income sources, crop mix, and input use decisions: Evidence from Nigeria

This paper combines panel data from nationally representative household-level surveys in Nigeria with long-term satellite-based spatial data on temperature and precipitation using geo-referenced information related to households. It aims to quantify the impacts of climate change on agricultural prod...

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Main Authors: Amare, Mulubrhan, Balana, Bedru
Format: Journal Article
Language:Inglés
Published: Elsevier 2023
Subjects:
Online Access:https://hdl.handle.net/10568/130615
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author Amare, Mulubrhan
Balana, Bedru
author_browse Amare, Mulubrhan
Balana, Bedru
author_facet Amare, Mulubrhan
Balana, Bedru
author_sort Amare, Mulubrhan
collection Repository of Agricultural Research Outputs (CGSpace)
description This paper combines panel data from nationally representative household-level surveys in Nigeria with long-term satellite-based spatial data on temperature and precipitation using geo-referenced information related to households. It aims to quantify the impacts of climate change on agricultural productivity, income shares, crop mix, and input use decisions. We measure climate change in harmful degree days, growing degree days, and changes in precipitation using long-term (30 year) changes in temperature and precipitation anomalies during the crop calendars. We find that, controlling for other factors, a 15% (one standard deviation) increase in change in harmful degree days leads to a decrease in agricultural productivity of 5.22% on average. Similarly, precipitation change has resulted in a significant and negative impact on agricultural productivity. Our results further show that the change in harmful degree days decreases the income share from crops and nonfarm self-employment, while it increases the income share from livestock and wage employment. Examining possible transmission channels for this effect, we find that farmers change their crop mix and input use to respond to climate changes, for instance reducing fertilizer use and seed purchases as a response to increases in extreme heat. Based on our findings, we suggest policy interventions that incentivize adoption of climate-resilient agriculture, such as small-scale irrigation and livelihood diversification. We also propose targeted pro-poor interventions, such as low-cost financing options for improving smallholders' access to climate-proof agricultural inputs and technologies, and policy measures to reduce the inequality of access to livelihood capital such as land and other productive assets.
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spelling CGSpace1306152025-10-26T13:02:06Z Climate change, income sources, crop mix, and input use decisions: Evidence from Nigeria Amare, Mulubrhan Balana, Bedru agricultural productivity climate change crops data household surveys income livestock nonfarm income smallholders spatial data This paper combines panel data from nationally representative household-level surveys in Nigeria with long-term satellite-based spatial data on temperature and precipitation using geo-referenced information related to households. It aims to quantify the impacts of climate change on agricultural productivity, income shares, crop mix, and input use decisions. We measure climate change in harmful degree days, growing degree days, and changes in precipitation using long-term (30 year) changes in temperature and precipitation anomalies during the crop calendars. We find that, controlling for other factors, a 15% (one standard deviation) increase in change in harmful degree days leads to a decrease in agricultural productivity of 5.22% on average. Similarly, precipitation change has resulted in a significant and negative impact on agricultural productivity. Our results further show that the change in harmful degree days decreases the income share from crops and nonfarm self-employment, while it increases the income share from livestock and wage employment. Examining possible transmission channels for this effect, we find that farmers change their crop mix and input use to respond to climate changes, for instance reducing fertilizer use and seed purchases as a response to increases in extreme heat. Based on our findings, we suggest policy interventions that incentivize adoption of climate-resilient agriculture, such as small-scale irrigation and livelihood diversification. We also propose targeted pro-poor interventions, such as low-cost financing options for improving smallholders' access to climate-proof agricultural inputs and technologies, and policy measures to reduce the inequality of access to livelihood capital such as land and other productive assets. 2023-09 2023-06-02T20:21:51Z 2023-06-02T20:21:51Z Journal Article https://hdl.handle.net/10568/130615 en https://doi.org/10.2499/p15738coll2.136717 Open Access Elsevier Amare, Mulubrhan; and Balana, Bedru. 2023. Climate change, income sources, crop mix, and input use decisions: Evidence from Nigeria. Ecological Economics 211(September 2023): 107892. https://doi.org/10.1016/j.ecolecon.2023.107892
spellingShingle agricultural productivity
climate change
crops
data
household surveys
income
livestock
nonfarm income
smallholders
spatial data
Amare, Mulubrhan
Balana, Bedru
Climate change, income sources, crop mix, and input use decisions: Evidence from Nigeria
title Climate change, income sources, crop mix, and input use decisions: Evidence from Nigeria
title_full Climate change, income sources, crop mix, and input use decisions: Evidence from Nigeria
title_fullStr Climate change, income sources, crop mix, and input use decisions: Evidence from Nigeria
title_full_unstemmed Climate change, income sources, crop mix, and input use decisions: Evidence from Nigeria
title_short Climate change, income sources, crop mix, and input use decisions: Evidence from Nigeria
title_sort climate change income sources crop mix and input use decisions evidence from nigeria
topic agricultural productivity
climate change
crops
data
household surveys
income
livestock
nonfarm income
smallholders
spatial data
url https://hdl.handle.net/10568/130615
work_keys_str_mv AT amaremulubrhan climatechangeincomesourcescropmixandinputusedecisionsevidencefromnigeria
AT balanabedru climatechangeincomesourcescropmixandinputusedecisionsevidencefromnigeria