Once bitten, twice shy? Direct and indirect effects of weather shocks on fertilizer and improved seeds use

Evidence suggests that negative weather shocks, such as droughts, can influence input use in agriculture by reducing available income and shaping farmers' behavioral responses. Yet, the relative importance of these two pathways remains unclear. This study proposes a method to disentangle the direct...

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Main Authors: Mulungu, Kelvin H., Manning, Dale T., Bozzola, Martina
Format: Journal Article
Language:Inglés
Published: Elsevier 2025
Subjects:
Online Access:https://hdl.handle.net/10568/178124
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author Mulungu, Kelvin H.
Manning, Dale T.
Bozzola, Martina
author_browse Bozzola, Martina
Manning, Dale T.
Mulungu, Kelvin H.
author_facet Mulungu, Kelvin H.
Manning, Dale T.
Bozzola, Martina
author_sort Mulungu, Kelvin H.
collection Repository of Agricultural Research Outputs (CGSpace)
description Evidence suggests that negative weather shocks, such as droughts, can influence input use in agriculture by reducing available income and shaping farmers' behavioral responses. Yet, the relative importance of these two pathways remains unclear. This study proposes a method to disentangle the direct (behavioral) and indirect (income) effects of a drought shock on the use of inorganic fertilizer and improved maize seed. We employed a two-way fixed-effects regression combined with causal mediation analysis and entropy balancing to account for income endogeneity on a rich farm-level data from 6058 smallholder households in Zambia in 2012 and 2015. Our results show that farmers who experienced a drought in the previous growing season are less likely to use inorganic fertilizer but more likely to use improved seeds. The indirect income effect accounts for approximately 10% of the total effect for both inputs, amplifying the direct effect for inorganic fertilizer while diminishing it for improved seeds. The contribution of the indirect effect increases with the severity of drought shocks, although the direct effect remains the dominant channel. We also provide suggestive evidence that changes in risk aversion drive behavioral responses, while access to credit mitigates the income effect. These results highlight how drought shocks influence the timing and type of technology adopted in agriculture. Understanding the relative importance of these direct and indirect effects offers critical insights for policies aimed at enhancing climate change adaptation and agricultural productivity in the developing world.
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spelling CGSpace1781242025-11-24T16:30:09Z Once bitten, twice shy? Direct and indirect effects of weather shocks on fertilizer and improved seeds use Mulungu, Kelvin H. Manning, Dale T. Bozzola, Martina drought climate change adaptation agricultural productivity weather inorganic fertilizers Evidence suggests that negative weather shocks, such as droughts, can influence input use in agriculture by reducing available income and shaping farmers' behavioral responses. Yet, the relative importance of these two pathways remains unclear. This study proposes a method to disentangle the direct (behavioral) and indirect (income) effects of a drought shock on the use of inorganic fertilizer and improved maize seed. We employed a two-way fixed-effects regression combined with causal mediation analysis and entropy balancing to account for income endogeneity on a rich farm-level data from 6058 smallholder households in Zambia in 2012 and 2015. Our results show that farmers who experienced a drought in the previous growing season are less likely to use inorganic fertilizer but more likely to use improved seeds. The indirect income effect accounts for approximately 10% of the total effect for both inputs, amplifying the direct effect for inorganic fertilizer while diminishing it for improved seeds. The contribution of the indirect effect increases with the severity of drought shocks, although the direct effect remains the dominant channel. We also provide suggestive evidence that changes in risk aversion drive behavioral responses, while access to credit mitigates the income effect. These results highlight how drought shocks influence the timing and type of technology adopted in agriculture. Understanding the relative importance of these direct and indirect effects offers critical insights for policies aimed at enhancing climate change adaptation and agricultural productivity in the developing world. 2025-05 2025-11-24T16:30:08Z 2025-11-24T16:30:08Z Journal Article https://hdl.handle.net/10568/178124 en Limited Access Elsevier Mulungu, K., Manning, D. T., & Bozzola, M. (2025). Once bitten, twice shy? Direct and indirect effects of weather shocks on fertilizer and improved seeds use. Food Policy, 133, 102852. https://doi.org/10.1016/j.foodpol.2025.102852
spellingShingle drought
climate change adaptation
agricultural productivity
weather
inorganic fertilizers
Mulungu, Kelvin H.
Manning, Dale T.
Bozzola, Martina
Once bitten, twice shy? Direct and indirect effects of weather shocks on fertilizer and improved seeds use
title Once bitten, twice shy? Direct and indirect effects of weather shocks on fertilizer and improved seeds use
title_full Once bitten, twice shy? Direct and indirect effects of weather shocks on fertilizer and improved seeds use
title_fullStr Once bitten, twice shy? Direct and indirect effects of weather shocks on fertilizer and improved seeds use
title_full_unstemmed Once bitten, twice shy? Direct and indirect effects of weather shocks on fertilizer and improved seeds use
title_short Once bitten, twice shy? Direct and indirect effects of weather shocks on fertilizer and improved seeds use
title_sort once bitten twice shy direct and indirect effects of weather shocks on fertilizer and improved seeds use
topic drought
climate change adaptation
agricultural productivity
weather
inorganic fertilizers
url https://hdl.handle.net/10568/178124
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