IDEAS home Printed from https://ideas.repec.org/p/snd/wpaper/107.html
   My bibliography  Save this paper

Distributional Impact of Climate Change on Smallholder Agriculture in Sri Lanka

Author

Listed:
  • Jagath C Edirisinge

Abstract

his research develops a methodology based on the popular agricultural household model that take the nature of agricultural producers and the full income of households into consideration in predicting changes of welfare due to climate change. The effect of climate change on the choice of livelihood, as well as income from a given livelihood is analysed using a cross sectional data set from Sri Lanka. First, a multinomial logistic regression was estimated to model livelihood choice to assess whether it is climate dependent. Second, to assess the variations in the impact of future climate on the chosen livelihood strategies separate regression equations were estimated for each livelihood strategy. Predictions for a future climate were made using the model with household characteristics as it fits data better than the other two models.The recent IPCC predictions of temperature and rainfall were used in the predictions. Results reveal that there is a clear case of climate playing a significant role in livelihood choice by farmers. Of the livelihood choices considered, three strategies were found to be resilient to changes in climate: Tea and rubber, Coffee/pepper/betel and the wage labour strategy. Theyshow a positive change in welfare with the changes in climate. The spatial distribution of the welfare impacts show that resilience/vulnerability oflivelihood strategies vary spatially. This study highlights the importance of developing opportunities for farmers for off farm strategies and also to give due consideration of the spatial distribution of impacts when designing climate policies.

Suggested Citation

  • Jagath C Edirisinge, "undated". "Distributional Impact of Climate Change on Smallholder Agriculture in Sri Lanka," Working papers 107, The South Asian Network for Development and Environmental Economics.
    • Handle: RePEc:snd:wpaper:107
    as

    Download full text from publisher

    File URL: http://www.sandeeonline.org/uploads/documents/abstract/1091_ABS_Final_WP_110___Jagath_.pdfFile-FormatABS:application/pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rajesh Kumar Rai & Mani Nepal & Priya Shyamsundar & Laxmi Dutt Bhatta, "undated". "Demand for Watershed Services: Understanding Local Preferences through a Choice Experiment in the Koshi Basin of Nepal," Working papers 89, The South Asian Network for Development and Environmental Economics.
    2. Shiva Achet & Bill Fleming, 2006. "A watershed management framework for mountain areas: Lessons from 25 years of watershed conservationin Nepal," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 49(5), pages 675-694.
    3. Gómez-Baggethun, Erik & de Groot, Rudolf & Lomas, Pedro L. & Montes, Carlos, 2010. "The history of ecosystem services in economic theory and practice: From early notions to markets and payment schemes," Ecological Economics, Elsevier, vol. 69(6), pages 1209-1218, April.
    4. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D., 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304, September.
    5. Fauzi, Akhmad & Anna, Zuzy, 2013. "The complexity of the institution of payment for environmental services: A case study of two Indonesian PES schemes," Ecosystem Services, Elsevier, vol. 6(C), pages 54-63.
    6. Engel, Stefanie & Pagiola, Stefano & Wunder, Sven, 2008. "Designing payments for environmental services in theory and practice: An overview of the issues," Ecological Economics, Elsevier, vol. 65(4), pages 663-674, May.
    7. Vatn, Arild, 2010. "An institutional analysis of payments for environmental services," Ecological Economics, Elsevier, vol. 69(6), pages 1245-1252, April.
    8. W. Michael Hanemann, 1984. "Welfare Evaluations in Contingent Valuation Experiments with Discrete Responses," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(3), pages 332-341.
    9. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    10. Pandit, Ram & Bevilacqua, Eddie, 2011. "Forest users and environmental impacts of community forestry in the hills of Nepal," Forest Policy and Economics, Elsevier, vol. 13(5), pages 345-352, June.
    11. Motilal Ghimire, 2011. "Landslide occurrence and its relation with terrain factors in the Siwalik Hills, Nepal: case study of susceptibility assessment in three basins," 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. 56(1), pages 299-320, January.
    12. Andrew Daly & Stephane Hess & Kenneth Train, 2012. "Assuring finite moments for willingness to pay in random coefficient models," Transportation, Springer, vol. 39(1), pages 19-31, January.
    13. Rai, Rajesh Kumar & Shyamsundar, Priya & Nepal, Mani & Bhatta, Laxmi Dutt, 2015. "Differences in demand for watershed services: Understanding preferences through a choice experiment in the Koshi Basin of Nepal," Ecological Economics, Elsevier, vol. 119(C), pages 274-283.
    14. Kosoy, Nicolas & Martinez-Tuna, Miguel & Muradian, Roldan & Martinez-Alier, Joan, 2007. "Payments for environmental services in watersheds: Insights from a comparative study of three cases in Central America," Ecological Economics, Elsevier, vol. 61(2-3), pages 446-455, March.
    15. Rai, Rajesh Kumar & Scarborough, Helen, 2013. "Economic value of mitigation of plant invaders in a subsistence economy: incorporating labour as a mode of payment," Environment and Development Economics, Cambridge University Press, vol. 18(2), pages 225-244, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Laxmi Dutt Bhatta & Arati Khadgi & Rajesh Kumar Rai & Bikram Tamang & Kiran Timalsina & Shahriar Wahid, 2018. "Designing community-based payment scheme for ecosystem services: a case from Koshi Hills, Nepal," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 20(4), pages 1831-1848, August.
    2. Rajesh K. Rai & Mani Nepal & Laxmi D. Bhatta & Saudamini Das & Madan S. Khadayat & E. Somanathan & Kedar Baral, 2019. "Ensuring Water Availability to Water Users through Incentive Payment for Ecosystem Services Scheme: A Case Study in a Small Hilly Town of Nepal," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 5(04), pages 1-26, October.
    3. Nthambi, Mary & Markova-Nenova, Nonka & Wätzold, Frank, 2021. "Quantifying Loss of Benefits from Poor Governance of Climate Change Adaptation Projects: A Discrete Choice Experiment with Farmers in Kenya," Ecological Economics, Elsevier, vol. 179(C).
    4. Brian Witt, 2019. "Evaluating the Effects of a Minimalist Deliberative Framework on the Willingness to Participate in a Payment for Ecosystem Services Program," Resources, MDPI, vol. 8(2), pages 1-26, June.
    5. Seroa da Motta, Ronaldo & Ortiz, Ramon Arigoni, 2018. "Costs and Perceptions Conditioning Willingness to Accept Payments for Ecosystem Services in a Brazilian Case," Ecological Economics, Elsevier, vol. 147(C), pages 333-342.
    6. Colman, David & Pascual, Unai & Hodge, Ian, 2010. "Evolution of Land Conservation Policy," 14th ICABR Conference, June 16-18, 2010, Ravello, Italy 188082, International Consortium on Applied Bioeconomy Research (ICABR).
    7. Meginnis, Keila & Hanley, Nick & Mujumbusi, Lazaaro & Lamberton, Poppy H.L., 2020. "Non-monetary numeraires: Varying the payment vehicle in a choice experiment for health interventions in Uganda," Ecological Economics, Elsevier, vol. 170(C).
    8. Sattler, Claudia & Matzdorf, Bettina, 2013. "PES in a nutshell: From definitions and origins to PES in practice—Approaches, design process and innovative aspects," Ecosystem Services, Elsevier, vol. 6(C), pages 2-11.
    9. Kunwar, Samrat B. & Bohara, Alok K. & Thacher, Jennifer, 2020. "Public preference for river restoration in the Danda Basin, Nepal: A choice experiment study," Ecological Economics, Elsevier, vol. 175(C).
    10. Diswandi, Diswandi, 2017. "A hybrid Coasean and Pigouvian approach to Payment for Ecosystem Services Program in West Lombok: Does it contribute to poverty alleviation?," Ecosystem Services, Elsevier, vol. 23(C), pages 138-145.
    11. Khanal, Uttam & Wilson, Clevo & Lee, Boon & Managi, Shunsuke, 2017. "Influence of payment modes on farmers’ contribution to climate change adaptation: understanding differences using a choice experiment in Nepal," MPRA Paper 107430, University Library of Munich, Germany.
    12. Hejnowicz, Adam P. & Raffaelli, David G. & Rudd, Murray A. & White, Piran C.L., 2014. "Evaluating the outcomes of payments for ecosystem services programmes using a capital asset framework," Ecosystem Services, Elsevier, vol. 9(C), pages 83-97.
    13. Lima, Letícia Santos de & Krueger, Tobias & García-Marquez, Jaime, 2017. "Uncertainties in demonstrating environmental benefits of payments for ecosystem services," Ecosystem Services, Elsevier, vol. 27(PA), pages 139-149.
    14. Ureta, J. Carl & Motallebi, Marzieh & Vassalos, Michael & Seagle, Steven & Baldwin, Robert, 2022. "Estimating residents' WTP for ecosystem services improvement in a payments for ecosystem services (PES) program: A choice experiment approach," Ecological Economics, Elsevier, vol. 201(C).
    15. Rodríguez-Robayo, Karla Juliana & Merino-Perez, Leticia, 2017. "Contextualizing context in the analysis of payment for ecosystem services," Ecosystem Services, Elsevier, vol. 23(C), pages 259-267.
    16. Robert J. Johnston & Kevin J. Boyle & Wiktor (Vic) Adamowicz & Jeff Bennett & Roy Brouwer & Trudy Ann Cameron & W. Michael Hanemann & Nick Hanley & Mandy Ryan & Riccardo Scarpa & Roger Tourangeau & Ch, 2017. "Contemporary Guidance for Stated Preference Studies," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(2), pages 319-405.
    17. Kumar, Pushpam & Kumar, Manasi & Garrett, Lucy, 2014. "Behavioural foundation of response policies for ecosystem management: What can we learn from Payments for Ecosystem Services (PES)," Ecosystem Services, Elsevier, vol. 10(C), pages 128-136.
    18. Ma, Zhao & Bauchet, Jonathan & Steele, Diana & Godoy, Ricardo & Radel, Claudia & Zanotti, Laura, 2017. "Comparison of Direct Transfers for Human Capital Development and Environmental Conservation," World Development, Elsevier, vol. 99(C), pages 498-517.
    19. Muradian, Roldan & Corbera, Esteve & Pascual, Unai & Kosoy, Nicolás & May, Peter H., 2010. "Reconciling theory and practice: An alternative conceptual framework for understanding payments for environmental services," Ecological Economics, Elsevier, vol. 69(6), pages 1202-1208, April.
    20. Canessa, Carolin & Venus, Terese E. & Wiesmeier, Miriam & Mennig, Philipp & Sauer, Johannes, 2023. "Incentives, Rewards or Both in Payments for Ecosystem Services: Drawing a Link Between Farmers' Preferences and Biodiversity Levels," Ecological Economics, Elsevier, vol. 213(C).

    More about this item

    Keywords

    Climate change; agriculture; livelihood; Sri Lanka;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:snd:wpaper:107. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Anuradhak (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.