EconPapers    
Economics at your fingertips  
 

Transfers, Diversification and Household Risk Strategies: Experimental evidence with lessons for climate change adaptation

Karen Macours, Patrick Premand and Renos Vakis ()

No 8940, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: While climate change is likely to increase weather risks in many developing countries, there is little evidence on effective policies to facilitate adaptation. This paper presents experimental evidence on a program in rural Nicaragua aimed at improving households’ risk-management through income diversification. The intervention targeted agricultural households exposed to weather shocks related to changes in rainfall and temperature patterns. It combined a conditional cash transfer with vocational training or a productive investment grant. We identify the relative impact of each complementary package based on randomized assignment, and analyze how impacts vary by exposure to exogenous drought shocks. The results show that both complementary interventions provide full protection against drought shocks two years after the end of the intervention. Households that received the productive investment grant also had higher average consumption levels. The complementary interventions led to diversification of economic activities and better protection from shocks compared to beneficiaries of the basic conditional cash transfer and control households. These results show that combining safety nets with productive interventions can help households manage future weather risks and promote longer-term program impacts.

Keywords: cash transfers; climate change adaptation; diversification; productive investment; risk-management; shocks; vocational training (search for similar items in EconPapers)
JEL-codes: D1 I3 O1 (search for similar items in EconPapers)
Date: 2012-04
New Economics Papers: this item is included in nep-agr and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24) Track citations by RSS feed

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=8940 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Working Paper: Transfers, diversification and household risk strategies: experimental evidence with lessons for climate change adaptation (2012) Downloads
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:cpr:ceprdp:8940

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... ers/dp.php?dpno=8940

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().

 
Page updated 2021-03-01
Handle: RePEc:cpr:ceprdp:8940