Climate Risk Management: Akhter Ali, Olaf Erenstein
Climate Risk Management: Akhter Ali, Olaf Erenstein
a r t i c l e i n f o a b s t r a c t
Article history: Climate change is set to be particularly disruptive in poor agricultural communities. We
Received 8 May 2015 assess the factors influencing farmers’ choice of climate change adaptation practices and
Revised 19 September 2016 associated impacts on household food security and poverty in Pakistan using comprehen-
Accepted 17 December 2016
sive data from 950 farmers from its major provinces. A probit model was used to investi-
Available online 23 December 2016
gate the factors influencing the use of climate-change adaptation practices; the censored
least absolute deviation (CLAD) was used to analyze the determinants of the number of
JEL Classification:
adaptation practices used; and a propensity score matching (PSM) approach was employed
D64
Q22
to evaluate the impact of adaptation practices on food security and poverty levels.
Q120 Adjustment in sowing time (22% households), use of drought tolerant varieties (15%) and
Q540 shifting to new crops (25%) were the three major adaptation practices used by farmers
in the study area. Results show that younger farmers and farmers with higher levels of edu-
Keywords: cation are more likely to use these adaptation practices, as do farmers that are wealthier,
Climate change farm more land and have joint families. The number of adaptation practices used was
Food security
found to be positively associated with education, male household heads, land size, house-
Propensity score matching
hold size, extension services, access to credit and wealth. Farmers adopting more adapta-
Poverty
Pakistan tion practices had higher food security levels (8–13%) than those who did not, and
experienced lower levels of poverty (3–6%). Climate change adaptation practices at farm
level can thereby have significant development outcomes in addition to reducing exposure
to weather risks.
Ó 2017 The Authors. Published by Elsevier B.V. This is an open access article under the CC
BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).
1. Introduction
Climate change is increasing recognized as a global phenomenon with potentially far-reaching implications (Stern, 2006;
IPCC, 2007b; IPCC, 2014) and associated with more frequent extreme weather events (Stern, 2006; IPCC, 2007b; Karl et al.,
2009). Poor people living in agricultural communities in developing countries are expected to be the most affected by these
climatic changes (Maskrey et al., 2007). Developing countries are most vulnerable to climate change though they are only
contributing 10% to the annual global carbon dioxide emissions (Maskrey et al., 2007). South Asian countries are particularly
affected because of the vast populations still dependent on predominantly agriculture-based rural economies and the vast
number of poor people. This poses serious challenges to their social, economic and ecological systems (Zhuang, 2009;
⇑ Corresponding author at: International Maize and Wheat Improvement Center (CIMMYT), NARC, Park Road, Islamabad, Pakistan.
E-mail address: akhter.ali@cgiar.org (A. Ali).
http://dx.doi.org/10.1016/j.crm.2016.12.001
2212-0963/Ó 2017 The Authors. Published by Elsevier B.V.
This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).
184 A. Ali, O. Erenstein / Climate Risk Management 16 (2017) 183–194
Mirza, 2011). The World Bank’s South Asia Climate Change Strategy reported similar concerns that the poorest people in the
region will suffer the most from climate change because of unfavorable geography, limited assets, and a greater dependence
on climate-sensitive sources of income (World Bank, 2009). The frequent occurrences of extreme weather events in the
region in recent years (e.g. flash floods in Pakistan and India) are perceived to be directly associated with climate change
and likely to keep the poor in a perpetual poverty trap (Mendelsohn and Dinar, 1999).
Climate change manifests itself through increasing variation in the weather, including temperature, precipitation, and
wind. Scientific research confirms climate change is occurring and expected to aggravate in coming decades (Stern, 2006;
IPCC, 2007b; IPCC, 2014). Since 1950, the number of warm days and nights has increased, and it is projected that the length,
frequency, and intensity of heat waves will increase on most of the land (Field et al., 2012). As a result of climate change the
pattern, timing and intensity of the precipitation has also altered. The number of heavy precipitation events has increased
but with strong regional variations (Field et al., 2012). Rise in temperature and changes in precipitation are changing water
availability and other stresses for crops with effects on crop yield, income, and poverty. Globally abnormal disasters have
increased from 125 per year in 1980 to 400–500 in 2008 (Maon et al., 2009). Despite the fact that Pakistan has been a
low producer of carbon dioxide gasses (0.2 million metric tons), it is considered one of the worst affected by global warming
and Pakistan’s response to solving the problem has remained uninspired (Smadja et al., 2015). Due to adverse climatic con-
ditions Pakistan experiences high economic costs in terms of damage to property and infrastructure, losses in agricultural
productivity, rehabilitation and rebuilding costs of those areas distressed by environmental disasters (Husain, 2015).
The impact of climate change on food security and poverty depends on multiple interacting drivers especially the timing
of extreme events which are expected to become more frequent (IPCC, 2007a). The largest number of food insecure persons
are found in South Asia, which has roughly 300 million undernourished (FAO et al., 2012). In addition to the common mea-
sure of calorie availability, food security can be broadened to include nutritional aspects based on the diversity of diet.
Many of the impacts of climate change are likely to occur in and are channeled through the climate-sensitive sectors such
as agriculture (Mendelsohn, 2001). Climate change and variability presents a major challenge to agricultural production and
rural livelihoods and it affects approximately 2.5 billion people who derive their livelihood in part or in full from agricultural
production systems. To reduce the adverse impact of climate change on agriculture, adaptation is considered a vital compo-
nent of any policy response to climate change (Brooks and Adger, 2005; Deressa et al., 2009; Gbetibouom, 2009). Studies
show that without adaptation strategies, climate change is generally detrimental to agriculture, but can partly be offset
by various adaptation measures at the farm level (Downing, 1991; Easterling III et al., 1993, Rosenzweig and Parry, 1994;
Smith and Lenhart, 1996; Mendelsohn and Dinar, 1999; Reilly and Schimmelpfennig, 1999; Smit and Skinner, 2002). The
degree to which the agricultural sector is affected by climate change depends on the adaptive capacity of the farming com-
munities (Gbetibouo, 2009).
Climate change adaptation strategies for agriculture include: (a) micro-level options, such as crop diversification and
altering the timing of operations (Deressa et al., 2009); (b) market responses, such as income diversification and credit
schemes (Hussain and Mudasser, 2007); (c) institutional changes, mainly government responses, such as subsidies/taxes
and improvement in agricultural markets (Mendelsohn, 2001); and (d) technological developments, such as the develop-
ment and promotion of new crop varieties and advances in water management techniques, etc. (Smith and Lenhart,
1996; Mendelsohn, 2001; Smit and Skinner, 2002; Kurukulasuriya and Rosenthal, 2003; Hussain and Mudasser, 2007;
Deressa et al., 2009). However, some of the adaptation methods are highly localized and cannot be directly adopted and
implemented in other regions or agriculture settings.
Agriculture remains the backbone of Pakistan’s economy, contributing to about 20% of the total GDP and employing 43%
of the workforce. More than two-thirds of Pakistan’s population lives in rural areas, and their livelihood continues to revolve
around agriculture and allied activities. There have been some structural changes over time, but the contribution of agro-
based products continues to maintain its relative importance, giving impetus to the overall economic development and
growth of the economy (Government of Pakistan, 2003). Cotton, wheat, rice, sugarcane, maize, fruit and vegetables account
for more than 75% of the value of total crop output (Government of Pakistan, 2012–13).
In this context, agriculture is important for ensuring food security and reducing poverty. However, increasing weather
variability and climate change have threatened the agricultural sector and thereby, have become major barriers to achieving
food security and alleviating poverty in Pakistan. The increase in temperature can affect agriculture through its impact on
cropping seasons, the increase in evapotranspiration, the increase in irrigation requirements and the increasing heat stress
on crops. The use of short duration crop varieties and adjustment in sowing time may reduce the adverse impact of the afore-
mentioned climatic risks. Semi-arid and arid drylands in resource-poor regions of Pakistan, including Sindh and Baluchistan,
are more vulnerable to climate change, especially to reduced rainfall, increased evapotranspiration and drought.
Several studies in Pakistan revealed that cereals and other crops are vulnerable to heat stress and temperature rises. For
example, a 1 °C rise in temperature would result in wheat yield declines of 5–7% (Aggarwal and Sivakumar, 2011). Another
study (Sultana and Ali, 2006) found that wheat production would decline by 6–9% in arid, semi-arid and sub-humid regions
of Pakistan while it can increase in the humid zone. Similarly, an increase in temperature by 1.5 °C and 3 °C could decrease
wheat yield by 7% and 21% respectively in the Swat district of Pakistan (with average altitudes of 960 masl) whereas this
A. Ali, O. Erenstein / Climate Risk Management 16 (2017) 183–194 185
could increase wheat yield by 14% and 23% respectively in Chitral district (with average altitudes of 1500 masl) (Hussain and
Mudasser, 2007). Studies show that rice yield also declines with the rise in temperature. In semi-arid regions of Pakistan, the
rice yield could decline by 15% from 2012 to 2039, 25% from 2040 to 2069 and 36% from 2070 to 2099 if the rise in temper-
ature continues (Ahmad et al., 2013). Along with the increase in temperature, decreasing rainfall affects crop production. If
rainfall decreases by 6%, net irrigation water requirements in Pakistan could increase by almost 29%. This will negatively
affect over 1.3 million farm households in Pakistan and most of the crop production including cereals, fruits, and vegetables
(MoE-GIRP, 2003).
In order to adapt to climate change risks in agriculture, farmers use several adaptation strategies. Adaptation measures
such as an adjustment in sowing time, use of stress-tolerant crop varieties and shifting to new crops (e.g. more stress tol-
erant, or with shorter or longer crop cycles), could significantly reduce vulnerability to climate change (Smit and Skinner,
2002). Adaptation practices can involve changes in planting dates, fertilizer used, irrigation, plant breed or other aspects
of crop management and the cultivation process (Challinor et al., 2014) and have crop specific implications (Porter et al.,
2014). These adaptation practices typically reduce risk and are more likely to minimize the severity of the impact of climate
change. Thus, farm households using adaptation practices are more likely to be food secure compared to those not adopting.
Pakistan has experienced extreme weather events like untimely and heavy rainfall and flash floods in hilly regions caus-
ing enormous damage to the crops and properties of farmers. It is anticipated that these conditions will increase as a function
of climate change. Keeping in mind the importance of agriculture to the economy and rural livelihoods, the significance of
climate change adaptation strategies is crucial. Although, the adaptation practices are potentially important, not all the farm-
ers use such practices. Therefore, this paper assesses the use and determinants of climate-change adaptation practices by
farmers in Pakistan and their impact on household food security and poverty. The contribution of this paper is threefold:
first, it uses a multivariate probit to assess the determinants of choice of adaptation practices simultaneously (specifically,
adjustment in sowing time, use of drought-tolerant varieties and shifting to new crops); second, it investigates the determi-
nants of the number of practices used; and third, it assesses the impact of these practices on food security and poverty. The
remainder of this paper is organized as follows: Section 3 discusses the conceptual framework in terms of farmers’ adapta-
tion to climate change; Section 4 outlines the data and variables used in the models; Section 5 presents the empirical results
and discussions; finally, Section 6 concludes.
3. Conceptual framework
In Pakistan, different farmers try different strategies to adapt to climatic challenges. A multivariate probit estimation was
first used to investigate the choice determinants of climate change adaptation practices distinguishing between the adjust-
ment in sowing time, use of drought-tolerant varieties and a shift to new crops. A censored least absolute deviation was then
used to understand the determinants of the number of climate-change adaptation practices used. A propensity score match-
ing approach was employed to analyze the impact of adaptation practices on food security and poverty.
We consider a risk-averse farm Fi that opts for a number of strategies (Sj). It is assumed that households that have opted
for adaptation strategies have higher utility levels compared to those that have not:
where s is the average treatment effect for the treated (ATT), R1 denotes the value of the outcome for adopters of the new
technology and R0 is the value of the same variable for non-adopters. As noted above, the major problem is that we do not
observe EðR0 jI ¼ 1Þ:Although the difference ½se ¼ EðR1 jI ¼ 1Þ EðR0 jI ¼ 0 can be estimated, it is potentially a biased
estimator.
In the absence of experimental data, the PSM can be employed to account for this sample selection bias (Dehejia and
Wahba, 2002). The PSM is defined as the conditional probability that a farmer adopts the new technology, given pre-
adoption characteristics (Rosenbaum and Rubin, 1983). To create the condition of a randomized experiment, the PSM
employs the unconfoundedness assumption, also known as conditional independence assumption, which implies that once
186 A. Ali, O. Erenstein / Climate Risk Management 16 (2017) 183–194
Z is controlled for, technology adoption is random and uncorrelated with the outcome variables. The PSM can be expressed
as:
where I = (Abara and Singh, 1993) is the indicator for adoption and Z is the vector of pre-adoption characteristics. The con-
ditional distribution of Z, given p(Z) is similar in both groups of adopters and non-adopters.
After estimating the propensity scores, the average treatment effect for the treated (ATT) can then be estimated as:
4.1. Data
The study uses a primary dataset collected in 2014 using multi-stage sampling from 950 farmers in the four main pro-
vinces of Pakistan (Punjab, Khyber Pakhtunkhwa, Sindh, and Balochistan), which constitute 98% of the total land area of Pak-
istan. In the second stage, several districts were selected from each of the four provinces and in the third and the fourth
stages, tehsils (sub-districts, 119 total) and villages (275 total) were randomly selected (Table 1). From each village 3–5
households were randomly selected, resulting in 350 farmers from the Punjab, 250 each from the Khyber Pakhtunkhwa
(KPK) and Sindh provinces and 100 farmers from Balochistan. In Punjab and Sindh, the agricultural lands are mostly irrigated
by canals while in KPK and Balochistan only a small proportion of the agricultural land is irrigated by canals. Using a struc-
tured questionnaire, data on a number of socioeconomic, farm and household characteristics were collected. In addition, data
relating to the farmers’ experience of climate changes, various adaptation practices adopted and their impact on crop yields,
household food security and income levels were collected.
Table 1
Sampling framework.
Table 2 presents the descriptive statistics for the variables used in this study. The majority of the households (96%) are
male-headed with an average household size of 10. Joint families are common in South Asia, and the data revealed that 68%
of the rural households were joint families. The mean age of the farmers was 43 years and mean years of schooling was about
nine years, indicating that farmers in the study area were middle-aged are fairly educated. On an average, the farming house-
hold had about 14 years of experience in agriculture, which is quite substantial. A small number of the surveyed households
had migrated to the present location (8%), and 92% of the households were found to be local. The average size of land holding
was about 2.65 ha; 74% farmers in the survey owned land, and the remaining 26% were pure tenants;. Approximately 65% of
the farmers have good quality soil, and the rest have poor quality soil. Two third of the farmers (67%) have fragmented land, and
an overwhelming majority (85%) have plain land. Land leveling was practiced by 23% of the farmers and only 8% of the farmers
cultivated legumes for increasing the soil fertility. Access to blacktop roads was limited to about 48% of the rural households.
Few households have tractors (9%), irrigation tube wells (7%) or cars (19%). The average livestock ownership is about 7.3 per
household. Only 6% of the farmers have access to a credit facility, and about 26% of the farmers have access to extension services.
Mean income and expenditures of the household were Pakistani Rupees 42,165 and Pakistani Rupees 36,906 respectively.
Most (87%) of the respondents reported observing changes in climatic conditions, which suggests that climate change has
been experienced by most of the surveyed rural society. Similarly, majority noted a change in rainfall (timing and amount),
monsoon onset and temperature during last ten years. Probably being a farming household, the weather events that affect
agriculture are well noted by these households. Farmers typically adjusted the sowing time of their crops (22%) to the chang-
ing conditions, while 15% of the farmers adopted heat/stress tolerant varieties. A quarter shifted to new crops due to chang-
ing weather conditions. Two-thirds of the farmers recycle their seed, and the rest use the seed from other sources, mostly
from fellow farmers and dealers.
Table 3 presents the results of the multivariate probit estimation of the determinants of farmers’ adaptation practices to
climate change distinguishing between the adjustment in sowing time, use of drought-tolerant varieties, and a shift to new
Table 2
Data and description of variables.
crops. Based on the review of the literature and microeconomic theory, a set of independent variables are included in the
model.
5.1.1. Demographic
Age of the household head turned out to be negatively associated with the adoption of the three adaptation practices,
which suggests that younger farmers are more likely to adopt compared to their older counterparts possibly for being inno-
vative and keen to try new technology and methods to improve agriculture. Older farmers could also be not aware of recent
innovations in agriculture and/or are reluctant to try new methods.
Joint families and family size are both positively associated with adaptation practices, possibly reflecting labor supply.
The association between household size and adaptation strategies has been similarly found in other studies
(Croppenstedt et al., 2003; Deressa et al., 2009; Abid et al., 2015). Other studies have made an association between larger
households and the ability to supply surplus labor to non-farm activities (Lanjouw and Lanjouw, 2001; Reardon et al.,
2001; Rahut and Micevska Scharf, 2012; Gautam and Andersen, 2016) and the income generated could be invested in climate
risk coping strategies. The gender of the household head proved insignificant – which compares with the mixed results
reported in other studies: in some male headed households were more likely to adopt climate risk coping strategies
(Deressa et al., 2009) while in others female-headed households (Nhemachena and Nhem, 2007).
Table 3
Climate-coping strategies adopted by farmers (multivariate probit estimates).
households. Other studies have similarly found a positive correlation between education and adoption of climate risk man-
agement (Thomas et al., 2007; Hassan and Nhemachena, 2008; Deressa et al., 2009; Bryan et al., 2013; Abid et al., 2015).
5.1.3. Land
Land is a major agricultural productive asset and wealth indicator. Land holding size is strongly associated with all three
adaptation methods – in line with the generally reported positive association between farm size and technology adoption
(Abid et al., 2015; Tiwari et al., 2009; Bryan et al., 2013). Farmers with large landholdings are likely to have more capacity
to try out and invest in climate risk coping strategies. In Pakistan the majority of farms are small-scale with 90% of the farms
being two hectares or less (Bryan et al., 2013); although land distribution is highly skewed, and one-third of the farmers are
pure tenant farmers having no land ownership (Government of Pakistan, 2014–2015). Perhaps somewhat surprisingly, after
controlling for land size (and other wealth indicators, see below), ownership of land turned out to be negative for all three
adaptation methods. Other studies have shown mixed results for the relationship between tenancy status and climate
change adaptation: some found a positive association between land ownership and adaptation (Fosu-Mensah et al., 2012;
Iheke and Agodike, 2016), others reported a negative correlation (Nabikolo et al., 2012; Abid et al., 2015, 2016; Iqbal
et al., 2015; Javed et al., 2015), the latter variously associated with the need for tenants to pay land rents and have more
agriculturally reliant livelihoods.
Farmers with fragmented land are likely to (only) adjust sowing time – possibly for not involving major investments and
hence easy to pursue especially when fields are fragmented. Good soil quality and plain land are both positively related to all
three adaptation methods. Better agricultural land is typically more productive so potentially increasing the marginal return
to the investment and incentives to adapt to climate risk. Farmers who have practiced land leveling activities are less likely
to adjust sowing time, but more likely to use stress-tolerant varieties or shift to new crops. Land leveling is more likely in
irrigated fields which reduces the need to adjust sowing time and enhances diversification prospects and technological
innovation.
5.1.6. Location
Location typically plays an important role in climate change adaptation (Vincent, 2007; Tiwari et al., 2008; Hinkel, 2011;
Below et al., 2012). The current study included provincial dummies to control for the location effect on adaptation strategies.
With Punjab being the base for the model, these indicate significant regional effects. Interestingly, Sindh has a positive effect
on the adoption of each practice. This is likely associated with the location of Sindh to the South of Punjab being generally
hotter and drier. In contrast, the more agro-ecologically diverse and generally less developed Balochistan and KPK have a
generally negative effect on the adoption.
The cross-equation correlations are positive and highly significant at the 1% level of significance, indicating that these
adaptation practices need to be estimated jointly. The LR Chi-square is also highly significant at the 1% level of significance,
indicating the robustness of the variables included in the model.
190 A. Ali, O. Erenstein / Climate Risk Management 16 (2017) 183–194
Table 4 presents the determinants of the aggregate number of adaptation methods used using the censored least absolute
deviation (CLAD) estimation.
5.2.1. Demographic
The age coefficient is again negative indicating that young farmers adopt more adaptation methods than the older farm-
ers, possibly because young farmers are more aware of climate change and adaptation practices. The family size coefficient is
positive indicating that the farmers with larger families adopt more adaptation practices. Male-headed households adopt
more adaptation methods compared to the female-headed household. Locally originating households (i.e. non-migrants)
are positively associated with the number of practices adopted (though significant only at 10%), possibly owing to the local
knowledge and access to local networks.
Table 4
Number of strategies adopted by the farmers (CLAD estimates).
Table 5
Impact of climate change on household food security and poverty levels (PSM estimates).
Note: ATT stands for the average treatment affect for the treated. NNM stands for the nearest neighbor matching and KBM stands for the kernel-based
matching. The results are significant at ⁄⁄⁄, ⁄⁄, ⁄ 1%, 5% and 10% levels respectively.
5.2.6. Location
The provincial dummy’s again indicate significant regional effects. With Punjab being the base for the model, Sindh has a
positive effect on the number of practices used whereas KPK has a negative effect and Baluchistan proved non-significant.
Table 5 presents the impacts of the number of adaptation methods used on household food security and poverty levels
based on propensity score matching. Farmers who adopt one adaptation strategy have higher food security levels (7–8%) and
Table 6
Indicators of covariate balancing (before and after matching).
Matching # of Outcome Median Median % bias Value of Value of Joint significance Joint
algorithm strategies absolute bias – absolute bias reduction R2- before R2 – after of covariates significance of
before – after matching match-ing before matching covariates after
matching matching matching
NNM 1 Food 17.40 4.28 75.4 0.416 0.001 0.001 0.364
Security
NNM Poverty 19.16 5.13 73.2 0.372 0.002 0.000 0.347
KBM Food 20.43 6.17 69.7 0.268 0.001 0.002 0.392
Security
KBM Poverty 21.50 5.29 75.3 0.519 0.003 0.001 0.260
NNM 2 Food 18.24 4.33 76.2 0.350 0.001 0.003 0.413
Security
NNM Poverty 19.17 5.04 73.7 0.284 0.004 0.000 0.527
KBM Food 24.50 6.32 74.2 0.365 0.005 0.001 0.632
Security
KBM Poverty 22.81 5.21 77.1 0.269 0.001 0.002 0.513
NNM 3 Food 19.25 4.78 75.1 0.308 0.001 0.003 0.417
Security
NNM Poverty 15.36 5.24 65.8 0.221 0.002 0.001 0.513
KBM Food 23.57 6.23 73.5 0.206 0.003 0.001 0.275
Security
KBM Poverty 22.43 4.17 74.1 0.316 0.003 0.002 0.194
Note: NNM stands for the nearest neighbor matching and KBM stands for the kernel-based matching.
192 A. Ali, O. Erenstein / Climate Risk Management 16 (2017) 183–194
0 .2 .4 .6 .8 1
Propensity Score
lower poverty levels (2–3%) compared to those that have not adopted, both in nearest neighbor matching (NNM) and kernel-
based matching (KBM).
Similarly, in both NNM and KBM, if the household adopts two adaptation practices the food security levels are higher
(8–9%) and the poverty levels lower (3–5%) compared to farmers who have not adopted any adaptation strategy. If the
household use three adaptation practices the food security levels are even higher (12–14%) and the poverty levels are even
lower (6–8%) in NNM and KBM. These results have important policy implications. First, it highlights that adaptation practices
help to enhance the food security of rural households and help to reduce rural poverty. Second, it highlights that households
should be encouraged to adopt a number of adaptation practices so as to increase food security and reduce poverty. House-
holds not using adaptation practices are more food insecure and poorer. The critical level of hidden bias is also reported in
Table 5. The critical level of hidden bias indicates the level up to which the adopters and non-adopters differ in their odds of
adoption.
Table 6 presents the balancing tests for the PSM. Before matching, the bias is quite high (15–24) and after matching
reduced to 4–6. The percentage bias reduction is 69–76%. The R2 is quite high before matching and is quite low after match-
ing indicating that after matching they are quite similar are to each other. The p-value of joint significance of covariates indi-
cates that before matching there are systematic differences between the adopters and non-adopters, and after matching the
adopters and non-adopters are quite similar to each other. The indicators of covariates balancing are presented in Fig. 1 and
indicate the imposition of the common support condition and the balancing of covariates before and after matching.
6. Conclusion
We examined the factors influencing the choice of climate-change adaptation practices and associated impacts on house-
hold food security and poverty in Pakistan. Farmers in Pakistan are using a variety of adaptation practices to counter the
adverse impacts of climate change. Our survey of 950 farmers across four major provinces of Pakistan (Punjab, Khyber Pakh-
tunkhwa (KPK), Sindh and Balochistan) in 2014 found 22% of the households to have made sowing time adjustments, 15%
have adopted drought tolerant varieties, and 25% have made shifted to new crops. Various factors are influencing the choice
of climate-change coping strategies in Pakistan. A multivariate probit estimation was used to investigate the determinants of
choice of climate-change adaptation strategies, and a censored least absolute deviation (CLAD) was used to understand the
determinants of the number of climate-change coping strategies. The propensity score matching approach was employed to
analyze the impact of coping strategies on food security and poverty levels.
Given the positive relation between climate-change adaptation strategy and food security, and the negative association
between climate-change adaptation strategies and poverty levels indicated by the propensity score matching, there is scope
for policy to further promote the adoption of climate-change adaptation strategies. The results of the multivariate probit
estimation on the determinants of farmers’ adaptation methods to climate change revealed some interesting facts, which
are unique in the context of Pakistan and also have significant policy implications. Firstly the results highlight the impor-
tance of awareness and knowledge about the local context, climate change, adaptation strategies and its benefits. Secondly,
the result points to the importance of wealth on the ability of the farm households to invest in climate risk coping strategies.
Hence, policy should focus on two aspects: (i) increasing the awareness of climate change and climate risk coping strategies
and its benefits; and (ii) increasing the affordability of climate risk coping capacity by augmenting the farm household assets
A. Ali, O. Erenstein / Climate Risk Management 16 (2017) 183–194 193
and lowering the cost of adaptation. Policy on increasing the awareness should focus on increasing access to education and
agricultural extension services. Policy on enhancing the accessibility of the climate risk coping strategies should focus on
increasing the endowments for instance through access to services and alternative livelihoods, and providing support to
especially the poorer households.
Acknowledgements
This study was made possible through the support provided by the United States Agency for International Development
(USAID) funded Agricultural Innovation Program (AIP) for Pakistan. We also thank the Consortium Research Program (CRP)
on WHEAT and MAIZE for supporting this study. The contents and opinions expressed herein are those of the author(s) and
do not necessarily reflect the views of USAID, or the authors’ institution, and shall not be used for advertising or product
endorsement purposes. The usual disclaimer applies.
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