 Extreme heat and rural household adaptation: Evidence from Northeast ChinaXiaomeng Cui and Qu Tang Journal of Development Economics, 2024, vol. 167, issue C Abstract: More extreme heat events are expected under climate change, posing threats to food production as well as the lives of agriculture-dependent rural households. Using a detailed panel of rural households in an agricultural region of China, we find extreme heat substantially decreases crop production and lowers households’ agricultural returns. Nevertheless, the households successfully smooth their consumption contemporaneously by utilizing precautionarily saved buffers (liquid financial assets and crop stocks), especially among those who regularly hold these buffers. Their future expenditures are also largely unaffected. This adaptability of consumption smoothing discourages within-season adjustments in variable inputs and productive assets. Still, extreme heat guides impacted households toward a more diverse but less risky crop portfolio in later years. Keywords: Climate change; Rural household; Environmental adaptation; Consumption smoothing; Productive adjustments (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:deveco:v:167:y:2024:i:c:s0304387823001992 DOI: 10.1016/j.jdeveco.2023.103243 Access Statistics for this article Journal of Development Economics is currently edited by M. R. Rosenzweig More articles in Journal of Development Economics from Elsevier |
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