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Can Irrigation Infrastructure Mitigate the Effect of Rainfall Shocks on Conflict? Evidence from Indonesia

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  • Nicolas Gatti
  • Kathy Baylis
  • Benjamin Crost

Abstract

This article provides evidence that rainfall shocks affect conflict through their effect on agricultural production and that irrigation infrastructure can mitigate this effect. Using data from Indonesia, we document that low rainfall during the agricultural season decreases agricultural production and increases civil conflict. We then show that the rainfall‐conflict link is attenuated by the presence of irrigation infrastructure in a district. This attenuating effect is specific to irrigation infrastructure; we find no evidence for a similar effect of hydropower dams. Our results are stronger for small‐scale conflicts over natural resources and popular justice than for conflicts over ethnic identity or ethnic separatism. These results are robust to controlling for interactions between rainfall and a wide range of socio‐economic and geographic district characteristics. We conclude that adaptive policies that mitigate the negative effects of weather shocks on agriculture may also prevent conflict.

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  • Nicolas Gatti & Kathy Baylis & Benjamin Crost, 2021. "Can Irrigation Infrastructure Mitigate the Effect of Rainfall Shocks on Conflict? Evidence from Indonesia," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(1), pages 211-231, January.
    • Handle: RePEc:wly:ajagec:v:103:y:2021:i:1:p:211-231
    DOI: 10.1002/ajae.12092
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    2. Justin Hastings & David Ubilava, 2023. "Agricultural Roots of Social Conflict in Southeast Asia," Papers 2304.10027, arXiv.org, revised Aug 2024.
    3. Ariel Ortiz-Bobea, 2021. "Climate, Agriculture and Food," Papers 2105.12044, arXiv.org.
    4. Unfried, Kerstin & Kis-Katos, Krisztina & Poser, Tilman, 2022. "Water scarcity and social conflict," Journal of Environmental Economics and Management, Elsevier, vol. 113(C).
    5. Ishak, Phoebe W., 2022. "Murder nature: Weather and violent crime in rural Brazil," World Development, Elsevier, vol. 157(C).
    6. Sébastien Mary & Avraham Stoler, 2021. "Does agricultural trade liberalization increase obesity in developing countries?," Review of Development Economics, Wiley Blackwell, vol. 25(3), pages 1326-1350, August.
    7. Manh Hung Do & Trung Thanh Nguyen, 2023. "Does irrigation development mitigate weather extremes’ impacts and reduce poverty? Evidence from rural Southeast Asia," TVSEP Working Papers wp-034, Leibniz Universitaet Hannover, Institute for Environmental Economics and World Trade, Project TVSEP.
    8. Marbler, Alexander, 2024. "Water scarcity and local economic activity: Spatial spillovers and the role of irrigation," Journal of Environmental Economics and Management, Elsevier, vol. 124(C).

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