Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 1 of 1
Full-Text Articles in Economics
Are Risk Attitudes And Rainfall Variability Determinants Of Diversification? Evidence From Rondonia, Brazil, Brenna Swinger
Are Risk Attitudes And Rainfall Variability Determinants Of Diversification? Evidence From Rondonia, Brazil, Brenna Swinger
Graduate Student Theses, Dissertations, & Professional Papers
Risk exposure and management are inherent to smallholder farmers. One of the risks they face is climate change. Climate change decreases rainfall, increases frequency of drought, adds heat stress to crops from higher temperatures, and leads to higher rainfall variability. The threat of rainfall variability causes higher production in some years and lower in others. Even if the average income remains the same, people’s welfare is reduced by the variability and the size of the loss will depend on their attitudes towards risk.
Diversification is one adaption strategy that may help reduce climate risk. Diversified farmers produce multiple types of …