The Impact of Income Inequality on Rural Household's Adoption of Climate‐Smart Agriculture Practices: Evidence From Yellow River Basin Region, China

Boqian Wang, Yu Wang, Rong Kong and Yan Hong

Review of Development Economics, 2025, vol. 29, issue 3, 1304-1322

Abstract: Climate‐smart agriculture (CSA) has been recognized as a crucial approach to enhancing agricultural productivity, resilience, and sustainability. However, despite its well‐documented benefits, CSA practices adoption remains relatively low, particularly in developing regions. This study investigates the impact of income inequality on CSA practices adoption in the Yellow River Basin, China, using survey data from 3486 wheat‐farming households and econometric modeling. The results reveal that income inequality significantly reduces CSA practices adoption, primarily by restricting access to credit and information. In contrast, exposure to natural disasters and engagement in cash crop cultivation are associated with increased CSA practices adoption. Moreover, the negative impact of income inequality is more pronounced for high‐input CSA practices, whereas its effect on low‐input CSA practices is relatively limited. The results underscore the necessity of targeted policy interventions to enhance financial accessibility and information dissemination, thereby mitigating the adverse effects of income inequality and promoting broader CSA practices adoption among farmers.

Date: 2025
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