Typhoon and Agricultural Production Portfolio -Empirical Evidence for a Developing Economy

Thi Xuyen Tran

VfS Annual Conference 2021 (Virtual Conference): Climate Economics from Verein für Socialpolitik / German Economic Association

Abstract: In this paper, we investigate whether and how households adjust their agricultural practices such as cultivation and livestock to adapt to a severe typhoon. We, therefore, make use of a natural experiment coming from the strong typhoon Ketsana in 2009. We apply the difference-in-differences approach using micro-data on the household level and spatial data of this severe typhoon. Our empirical findings suggest that households alter their agricultural activities in response to a strong typhoon. While they decrease the area planted for staple crops, i.e., rice and cassava, they tend to purchase more livestock, i.e., pigs, in the short term and in the medium term. Our paper not only indicates the adjustment to the croplivestock system as a livelihood adaptation strategy to a severe typhoon, but it also suggests the shifting trend from crop planting to livestock raising, which emphasizes the contraction of crop farming in the aftermath of this type of event.

Keywords: Typhoon; Agricultural production; Crops; Livestock; Vietnam (search for similar items in EconPapers)
JEL-codes: O12 O13 Q12 Q15 Q54 (search for similar items in EconPapers)
Date: 2021
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 (1)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc21:242411

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