Joint liability and adaptation to climate change: evidence from Burkinabe cooperatives

Pauline Castaing

European Review of Agricultural Economics, 2021, vol. 48, issue 3, 502-537

Abstract: In semi-arid lands, the resilience of farmers facing climate change is uncertain. The main objective of this paper is to explore whether mutual assistance within a group of cotton farmers implies reduced adoption of risk-mitigating strategies. I investigate the case of Burkina Faso where cotton farmers collectively purchase inputs from the cotton wholesale companies and pay for their purchase under the constraint of joint liability. Specifically, I try to understand whether this joint liability is correlated with the adoption of strategies which reduce exposure to climatic risks. I proxy peer pressure by the size of the network and find it to be associated with reduced investment in both incremental and transformational self-protection against weather shocks.

Keywords: sharing obligations; group lending; climate change; adaptation; Burkina Faso (search for similar items in EconPapers)
Date: 2021
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