Can Land Fragmentation Reduce the Exposure of Rural Households to Weather Variability?

Stefanija Veljanoska
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Stefanija Veljanoska: PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, UP1 - Université Paris 1 Panthéon-Sorbonne, RITM - Réseaux Innovation Territoires et Mondialisation - Université Paris-Saclay

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Abstract: Climate change continuously affects African farmers that operate in rain-fed environments. Coping with weather risk through credit and insurance markets is almost inexistent as these markets are imperfect in the African economies. Even though land fragmentation is often considered as a barrier to agricultural productivity, this article aims at analyzing whether land fragmentation, as an insurance alternative, is able to reduce farmers' exposure to weather variability. In order to address this research question, I use the Living Standards Measurement Study-Integrated Surveys on Agriculture (LSMS-ISA) data on Uganda. After dealing with the endogeneity of land fragmentation, I find that higher land fragmentation decreases the loss of crop yield when households experience rainfall anomalies, but remains detrimental for those households that are not exposed to such irregularities. Therefore, policy makers should be cautious while implementing uniform land consolidation programs.

Date: 2018-12
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Published in Ecological Economics, 2018, 154, pp.42-51. ⟨10.1016/j.ecolecon.2018.06.023⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04626999

DOI: 10.1016/j.ecolecon.2018.06.023

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