Nexus of climate change adaptation and household wealth in climate risk hotspots – Insights from rural farm households of Pakistan
The agricultural sector is a cornerstone of economic development, particularly in low-income countries where smallholder farming supports livelihoods and food security. However, the increasing unpredictability of climatic factors poses significant challenges, threatening its capacity to bolster smal...
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| Format: | Article |
| Language: | English |
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Elsevier
2025-01-01
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| Series: | Climate Risk Management |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S221209632500018X |
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| author | Shangao Wang Panhwar Ghulam Mustafa Gershom Endelani Mwalupaso Zhou Li |
| author_facet | Shangao Wang Panhwar Ghulam Mustafa Gershom Endelani Mwalupaso Zhou Li |
| author_sort | Shangao Wang |
| collection | DOAJ |
| description | The agricultural sector is a cornerstone of economic development, particularly in low-income countries where smallholder farming supports livelihoods and food security. However, the increasing unpredictability of climatic factors poses significant challenges, threatening its capacity to bolster smallholder farmers’ household wealth through food production. While climate adaptation measures have been widely promoted, there remains a notable lack of empirical evidence establishing the relationship between climate adaptation and household wealth. Addressing this critical research gap, this study examines the relationship between climate adaptation and household wealth among 400 wheat smallholder farmers in Sindh province, Pakistan. Using endogenous switching regression (ESR) and propensity score matching (PSM) for robustness, we estimate the average treatment effect on the treated (ATT). The results consistently show that climate adaptation significantly increases per capita household wealth, primarily through enhanced crop production. Counterfactual analysis reveals that non-adopting households could have reduced poverty severity by 15% and extreme poverty by 17% had they adopted adaptation measures. These findings provide compelling empirical evidence for policymakers to prioritize adaptation support frameworks—such as subsidized inputs or training programs—which are indispensable for safeguarding food production, reducing climate vulnerability, and lifting smallholders out of poverty. By demonstrating the dual benefits of adaptation—wealth accumulation and poverty alleviation—this study underscores the urgency of scaling up climate-resilient agricultural practices as a key strategy for reducing vulnerability and fostering sustainable livelihoods. |
| format | Article |
| id | doaj-art-d68b22d51d264d0c96c46160d56a03f2 |
| institution | DOAJ |
| issn | 2212-0963 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Climate Risk Management |
| spelling | doaj-art-d68b22d51d264d0c96c46160d56a03f22025-08-20T03:21:51ZengElsevierClimate Risk Management2212-09632025-01-014810070410.1016/j.crm.2025.100704Nexus of climate change adaptation and household wealth in climate risk hotspots – Insights from rural farm households of PakistanShangao Wang0Panhwar Ghulam Mustafa1Gershom Endelani Mwalupaso2Zhou Li3School of Business, Nanjing Normal University, Nanjing 210023, PR China; School of Management, Nanjing University of Posts and Telecommunications, Nanjing 210003, PR ChinaCollege of Economics and Management, Nanjing Agricultural University, Jiangsu, Nanjing, ChinaCollege of Economics and Management, Nanjing Agricultural University, Jiangsu, Nanjing, China; Department of Agriculture and Agribusiness, Prince G Consultancy and Academy, Zambia; Corresponding authors.College of Economics and Management, Nanjing Agricultural University, Jiangsu, Nanjing, China; Corresponding authors.The agricultural sector is a cornerstone of economic development, particularly in low-income countries where smallholder farming supports livelihoods and food security. However, the increasing unpredictability of climatic factors poses significant challenges, threatening its capacity to bolster smallholder farmers’ household wealth through food production. While climate adaptation measures have been widely promoted, there remains a notable lack of empirical evidence establishing the relationship between climate adaptation and household wealth. Addressing this critical research gap, this study examines the relationship between climate adaptation and household wealth among 400 wheat smallholder farmers in Sindh province, Pakistan. Using endogenous switching regression (ESR) and propensity score matching (PSM) for robustness, we estimate the average treatment effect on the treated (ATT). The results consistently show that climate adaptation significantly increases per capita household wealth, primarily through enhanced crop production. Counterfactual analysis reveals that non-adopting households could have reduced poverty severity by 15% and extreme poverty by 17% had they adopted adaptation measures. These findings provide compelling empirical evidence for policymakers to prioritize adaptation support frameworks—such as subsidized inputs or training programs—which are indispensable for safeguarding food production, reducing climate vulnerability, and lifting smallholders out of poverty. By demonstrating the dual benefits of adaptation—wealth accumulation and poverty alleviation—this study underscores the urgency of scaling up climate-resilient agricultural practices as a key strategy for reducing vulnerability and fostering sustainable livelihoods.http://www.sciencedirect.com/science/article/pii/S221209632500018XClimate changeAdaptationHousehold wealthSmallholder wheat farmersPakistan |
| spellingShingle | Shangao Wang Panhwar Ghulam Mustafa Gershom Endelani Mwalupaso Zhou Li Nexus of climate change adaptation and household wealth in climate risk hotspots – Insights from rural farm households of Pakistan Climate Risk Management Climate change Adaptation Household wealth Smallholder wheat farmers Pakistan |
| title | Nexus of climate change adaptation and household wealth in climate risk hotspots – Insights from rural farm households of Pakistan |
| title_full | Nexus of climate change adaptation and household wealth in climate risk hotspots – Insights from rural farm households of Pakistan |
| title_fullStr | Nexus of climate change adaptation and household wealth in climate risk hotspots – Insights from rural farm households of Pakistan |
| title_full_unstemmed | Nexus of climate change adaptation and household wealth in climate risk hotspots – Insights from rural farm households of Pakistan |
| title_short | Nexus of climate change adaptation and household wealth in climate risk hotspots – Insights from rural farm households of Pakistan |
| title_sort | nexus of climate change adaptation and household wealth in climate risk hotspots insights from rural farm households of pakistan |
| topic | Climate change Adaptation Household wealth Smallholder wheat farmers Pakistan |
| url | http://www.sciencedirect.com/science/article/pii/S221209632500018X |
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