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Accounting for diverse risk attitudes in measures of risk perceptions: A case study of climate change risk for small-scale citrus farmers in Indonesia

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  • Hasibuan, Abdul Muis
  • Gregg, Daniel
  • Stringer, Randy

Abstract

Climate change is likely to generate severe impacts on smallholder farmers in developing countries. As key drivers of adaptation, climate risk perceptions are highly heterogeneous, varying both across people and context, and are complex, being defined as behaviour which varies across both impact and likelihood dimensions in non-linear ways. Yet most studies examining risk perceptions are unable to disentangle the role of perceptions regarding impacts from those regarding the likelihood of climate-related events taking place. This paper presents a decomposition and associated analysis of survey-based ‘risk perception’ measures. The decomposition we apply allows independent accounting for perceptions over frequencies and impacts linking to behavioural patterns of risk attitude. The approach presented here draws on a detailed 2017 survey of 500 farmers in rural Indonesia to generate insights into the relationship between risk perceptions and extension services, accessibility of information, and other factors. Results show that risk perceptions are generated from complex interaction between perceived future frequencies and outcomes of climate events and indicate differential impacts of extension services across these perceptions. This paper also presents empirical support for the use of information and communication technology based extension as an efficient extension tool to reach more farmers than in traditional methods.

Suggested Citation

  • Hasibuan, Abdul Muis & Gregg, Daniel & Stringer, Randy, 2020. "Accounting for diverse risk attitudes in measures of risk perceptions: A case study of climate change risk for small-scale citrus farmers in Indonesia," Land Use Policy, Elsevier, vol. 95(C).
    • Handle: RePEc:eee:lauspo:v:95:y:2020:i:c:s026483771931097x
    DOI: 10.1016/j.landusepol.2019.104252
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    Cited by:

    1. Kusnandar, Kusnandar & Apriyanto, El Bram & Akbar, Maulana & Apriliyadi, Eki Karsani & Perdana, Tomy, 2024. "Understanding how governance arrangements within agricultural supply chains influence farmers' SAP adoption for adaptation and mitigation practices," Agricultural Systems, Elsevier, vol. 220(C).
    2. Tsegaye Ginbo & Helena Hansson, 2023. "Intra-household risk perceptions and climate change adaptation in sub-Saharan Africa," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 50(3), pages 1039-1063.
    3. Bagus Setiabudi Wiwoho & Ike Sari Astuti & Purwanto Purwanto & Ifan Deffinika & Imam Abdul Gani Alfarizi & Hetty Rahmawati Sucahyo & Randhiki Gusti & Mochammad Tri Herwanto & Gilang Aulia Herlambang, 2023. "Assessing long-term rainfall trends and changes in a tropical watershed Brantas, Indonesia: an approach for quantifying the agreement among satellite-based rainfall data, ground rainfall data, and sma," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 117(3), pages 2835-2862, July.
    4. Haiyu Yang & Wencong Cai & Jundi Liu & Xuexi Huo, 2021. "Impact of Internet Information on Apple Growers’ Adaptive Behaviors to Frost Disasters: Theory and Empirical Research from the Perspective of Psychological Perception," Agriculture, MDPI, vol. 11(10), pages 1-17, September.
    5. Emileva, Begaiym & Kuhn, Lena & Bobojonov, Ihtiyor & Glauben, Thomas, 2023. "The role of smartphone-based weather information acquisition on climate change perception accuracy: Cross-country evidence from Kyrgyzstan, Mongolia and Uzbekistan," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 41, pages 1-1.
    6. Abdul Muis Hasibuan & Daniel Gregg & Randy Stringer, 2021. "The role of certification, risk and time preferences in promoting adoption of climate-resilient citrus varieties in Indonesia," Climatic Change, Springer, vol. 164(3), pages 1-21, February.
    7. Azadi, Hossein & Petrescu, Dacinia Crina & Petrescu-Mag, Ruxandra Malina & Ozunu, Alexandru, 2020. "Special issue: Environmental risk mitigation for sustainable land use development," Land Use Policy, Elsevier, vol. 95(C).

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