Description: Transfers, Diversification and Household Risk Strategies : Experimental Evidence with Lessons for Climate Change Adaptation

Transfers, Diversification and Household Risk Strategies : Experimental Evidence with Lessons for Climate Change Adaptation

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 impro...

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Bibliographic Details
Main Authors:	Macours, Karen, Premand, Patrick, Vakis, Renos
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	AGRICULTURAL ACTIVITIES AGRICULTURAL PRACTICES AGRICULTURAL PRODUCTION AGRICULTURAL SEASON AGRICULTURAL WAGE ANIMAL PRODUCTION BENEFICIARIES BENEFICIARY BENEFICIARY GROUPS BENEFICIARY HOUSEHOLDS CARIBBEAN REGION CASH GRANTS CASH TRANSFER CASH TRANSFER PROGRAM CASH TRANSFER PROGRAMS CASH TRANSFERS CHILD GROWTH CLIMATE CHANGE CLIMATIC CHANGE COMMUNITIES CONDITIONAL CASH CONSUMPTION AGGREGATE CONSUMPTION DATA CONSUMPTION INSURANCE CONSUMPTION PER CAPITA CONSUMPTION SMOOTHING COPING MECHANISMS COPING STRATEGIES CROP INCOME CROP VARIETIES CROP YIELD CROP YIELDS DESCRIPTION DROUGHT ECONOMIC DEVELOPMENT ECONOMIC DIVERSIFICATION EMPLOYMENT GENERATION EMPLOYMENT IN AGRICULTURE EXPANSION OF IRRIGATION EXTENSION AGENTS FARMERS FEMALE FINANCIAL SUPPORT FOOD AID FOOD CONSUMPTION FOOD CONSUMPTION PER CAPITA FOOD CROP FOOD CROP PRODUCTION FOOD CROPS FOOD EXPENDITURES FOOD INSECURITY FOOD ITEMS FOOD PRODUCTS FOOD SECURITY GENDER HEALTH CENTER HEALTH SERVICE HOUSEHOLD HEAD HOUSEHOLD HEADS HOUSEHOLD INCOME HOUSEHOLD LEVEL HOUSEHOLD LEVEL DATA HOUSEHOLD SIZE HOUSEHOLD SURVEY HOUSEHOLD WELFARE HOUSEHOLDS WITH CHILDREN HOUSEHOLDS WITH LIVESTOCK HUMAN CAPITAL IMPACT OF SHOCKS INCOME INCOME GAINS INCOME GENERATION INCOME SHOCK INCOME SMOOTHING INFORMAL INSURANCE INSURANCE INTERNATIONAL FOOD POLICY INTERVENTION INTERVENTIONS LABOR DEMAND LABOR MARKET LAND OWNERSHIP LAND VALUE LIVESTOCK ACTIVITIES LIVESTOCK ASSETS LIVESTOCK PRODUCTS LIVING STANDARDS MEANS TEST MOBILITY NUTRITION PER CAPITA CONSUMPTION POOR POOR HOUSEHOLDS POVERTY ALLEVIATION POVERTY PERSISTENCE POVERTY REDUCTION PRODUCTIVE ASSETS PROGRAM ELIGIBILITY RISK MANAGEMENT RURAL RURAL HOUSEHOLDS RURAL POVERTY SAFETY SAFETY NET SAFETY NETS SAVINGS SCHOOL ENROLLMENT SELF-EMPLOYMENT SHOCK SKILLS TRAINING SOCIAL POLICY SOCIAL PROTECTION SOCIAL SAFETY NETS SUBSIDIZING SUBSISTENCE SUBSISTENCE CROPS SUPPORT PROGRAM TARGETING TECHNICAL ASSISTANCE TRANSACTION COSTS TRANSFER PROGRAM TRANSFERS OF CASH VOCATIONAL TRAINING WAGE EMPLOYMENT WAGE WORK WEATHER INSURANCE WEATHER RISK WEATHER RISKS WEATHER SHOCKS WHEAT PRODUCTION YOUTH
Online Access:	http://documents.worldbank.org/curated/en/2012/04/16239879/transfers-diversification-household-risk-strategies-experimental-evidence-lessons-climate-change-adaptation http://hdl.handle.net/10986/6055

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Summary:	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. The authors 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.

Transfers, Diversification and Household Risk Strategies : Experimental Evidence with Lessons for Climate Change Adaptation

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