Determinants of risk attitude and risk perception under changing climate among farmers in Punjab, Pakistan

Muhammad Farhan, Muhammad Asim Yasin (), Khuda Bakhsh, Rafaqet Ali, Sami Ullah and Saad Munir
Additional contact information
Muhammad Farhan: COMSATS University Islamabad
Muhammad Asim Yasin: COMSATS University Islamabad
Khuda Bakhsh: COMSATS University Islamabad
Rafaqet Ali: COMSATS University Islamabad
Sami Ullah: COMSATS University Islamabad
Saad Munir: COMSATS University Islamabad

Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, 2022, vol. 114, issue 2, No 44, 2163-2176

Abstract: Abstract Agriculture sector is uncertain and susceptible to climatic risks. Farmer’s risk attitude and risk perceptions play important roles in managing the risks at farm level. Precise and timely risk perception may help to evaluate the incidence and severity of risks while farmers’ attitude determines the response of the farmers toward risk. Therefore, farmers’ risk attitude and perceptions are significant in farmers’ decision-making during the uncertain conditions. The present study was designed to examine the farmers’ risk attitude and risk perceptions related to climatic factors. The study also focused on socioeconomic factors affecting the farmers’ risk attitude and risk perceptions. The study was conducted in three districts of Punjab such as Bahawalpur, Layyah and Rahim Yar Khan. Using a multistage sampling technique, a sample of 382 respondents was interviewed from all districts. The study employed the Equally Likely Certainty Equivalent and Cubic Utility Function to assess the risk attitude. Risk matrix was used to estimate the risk perceptions related to climate factors. The study used probit model to analyze the factors affecting the risk attitude and risk perceptions among farmers. Findings of the study indicate that most of the farmers have risk averse behavior. Farmers perceive rise in temperature as high risk followed by erratic rains, wind storms and pest breakouts. The results show that farmer’s age, education, farming experience and off-farm income significantly determine the farmers’ risk attitude and perceptions. The study results will be helpful for policy makers and researchers to design risk management strategies.

Keywords: Climate factors; Risk perceptions; Risk attitude; Probit model; Pakistan (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1007/s11069-022-05465-x Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:nathaz:v:114:y:2022:i:2:d:10.1007_s11069-022-05465-x

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/11069

DOI: 10.1007/s11069-022-05465-x

Access Statistics for this article

Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards is currently edited by Thomas Glade, Tad S. Murty and Vladimír Schenk

More articles in Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards from Springer, International Society for the Prevention and Mitigation of Natural Hazards
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().