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Peer effects and the choice of adaptation strategies

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  • Salvatore Di Falco
  • Angela Doku
  • Avichal Mahajan

Abstract

This paper analyzes the impact of peer choices on the decision to adapt to climate change in rural Ethiopia. Two IVs are employed (peer‐of‐peer choices and peer‐of‐peer information sources) in order to tackle the issue of endogeneity. Through the use of a 3‐year panel of farmers in the Nile Basin region, we find that peer choices positively affect the uptake of different adaptation strategies. A 10 percentage point increase in the share of peers using a specific strategy translates to an increase in the likelihood of adaptation between approximately 7% and 14%. This emphasizes the importance of social networks to achieve adaptation to climate change in sub‐Saharan Africa.

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  • Salvatore Di Falco & Angela Doku & Avichal Mahajan, 2020. "Peer effects and the choice of adaptation strategies," Agricultural Economics, International Association of Agricultural Economists, vol. 51(1), pages 17-30, January.
    • Handle: RePEc:bla:agecon:v:51:y:2020:i:1:p:17-30
    DOI: 10.1111/agec.12538
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    Cited by:

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    2. Tabe-Ojong, Martin Paul Jr. & Heckelei, Thomas & Baylis, Kathy & Rasch, Sebastian, 2023. "Cooperative membership and exposure to role models: Implications for income and asset aspirations," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 107(C).
    3. Yongfeng Tan & Apurbo Sarkar & Airin Rahman & Lu Qian & Waqar Hussain Memon & Zharkyn Magzhan, 2021. "Does External Shock Influence Farmer’s Adoption of Modern Irrigation Technology?—A Case of Gansu Province, China," Land, MDPI, vol. 10(8), pages 1-16, August.
    4. Martin Paul Jr Tabe‐Ojong & Guyo Godana Dureti, 2023. "Are agro‐clusters pro‐poor? Evidence from Ethiopia," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(1), pages 100-115, February.
    5. Emediegwu, Lotanna E. & Wossink, Ada & Hall, Alastair, 2022. "The impacts of climate change on agriculture in sub-Saharan Africa: A spatial panel data approach," World Development, Elsevier, vol. 158(C).
    6. Koliadenko, Svitlana & Andreichenko, Andrii & Galperina, Liubov & Minenko, Sofiia & Kovylina, Maria, 2020. "Analysis and forecasting of Ukrainian agrarian exports to the EU countries," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 6(3), September.
    7. Phu Nguyen-Van & Anne Stenger & Tuyen Tiet, 2021. "Social incentive factors in interventions promoting sustainable behaviors: A meta-analysis," PLOS ONE, Public Library of Science, vol. 16(12), pages 1-27, December.
    8. Reynaud, Arnaud & Ouvrard, Benjamin, 2024. "Re-calibrating beliefs about peers: Direct impacts and cross-learning effects in agriculture," TSE Working Papers 24-1517, Toulouse School of Economics (TSE).
    9. Masanori Matsuura‐Kannari & Yir‐Hueih Luh & Abu Hayat Md. Saiful Islam, 2023. "Weather shocks, livelihood diversification, and household food security: Empirical evidence from rural Bangladesh," Agricultural Economics, International Association of Agricultural Economists, vol. 54(4), pages 455-470, July.
    10. Abebayehu Girma Geffersa, 2024. "Does cooperative membership enhance inorganic fertilizer use intensity? Panel data evidence from maize farmers in Ethiopia," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 95(2), pages 327-361, June.
    11. Liu, Haiyan & Brouwer, Roy, 2022. "Incentivizing the future adoption of best management practices on agricultural land to protect water resources: The role of past participation and experiences," Ecological Economics, Elsevier, vol. 196(C).
    12. Hongyun Zheng & Wanglin Ma & Gucheng Li, 2021. "Learning from neighboring farmers: Does spatial dependence affect adoption of drought‐tolerant wheat varieties in China?," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 69(4), pages 519-537, December.
    13. Yanbing Wang & Niklas Möhring & Robert Finger, 2023. "When my neighbors matter: Spillover effects in the adoption of large‐scale pesticide‐free wheat production," Agricultural Economics, International Association of Agricultural Economists, vol. 54(2), pages 256-273, March.
    14. Ke Liu & Zhenhong Qi & Li Tan & Canwei Hu, 2023. "How Neighbors Influence Rice–Crayfish Integrated System Adoption: Evidence from 980 Farmers in the Lower and Middle Reaches of the Yangtze River," IJERPH, MDPI, vol. 20(5), pages 1-13, March.
    15. Emediegwu, Lotanna E. & Ubabukoh, Chisom L., 2023. "Re-examining the impact of annual weather fluctuations on global livestock production," Ecological Economics, Elsevier, vol. 204(PA).
    16. Tabe-Ojong, Martin Paul Jr. & Molua, Ernest L. & Nanfouet, Marco Alberto & Mkong, Cynthia J. & Kiven, Vanessa & Ntegang, Venant Atem, 2023. "Oil palm production, income gains, and off-farm employment among independent producers in Cameroon," Ecological Economics, Elsevier, vol. 208(C).
    17. Shi, Yuxing & Cai, Yu & Zhao, Minjuan, 2021. "Social interaction effect of rotational grazing and its policy implications for sustainable use of grassland: Evidence from pastoral areas in Inner Mongolia and Gansu, China," Land Use Policy, Elsevier, vol. 111(C).

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