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  • Author: Carmen Ponce
  • Publication Date: 07-2018
  • Content Type: Working Paper
  • Institution: Group for the Analysis of Development (GRADE)
  • Abstract: Non-farm income sources are increasingly important in the developing world, representing up to 50 percent of average rural household income. Although there is a vast literature on the determinants of rural households’ strategies for income diversification, two factors associated with long-term transformations and common to many developing countries, have not yet been integrated into the analysis: (i) the role of intraseasonal climate variability (affected by climate change), and (ii) the role of family networks located in distant areas (increasingly important given population displacement due to the internal conflict and increasing connectivity via roads and communications). Whereas an increase in climate variability entails an increase in risk and vulnerability for farm activities, family networks located in distant regions(that do not share the local climate or market shocks) may become a key asset for managing risk and fostering income opportunities (as long as they convey information and opportunities that are not available through local networks). Given the market imperfections that are common in developing rural areas—especially those related to climate risk management—explicit consideration of both factors is key to understanding rural households’ diversification strategies. The study aims to contribute to this pending agenda, investigating the role of these two factors on a household’s income diversification into non-farm activities in the Peruvian Andes, a mountain region with large intraseasonal climate variability and limited but increasing spatial connectivity, where the rural population was severely affected by the internal conflict that took place in the country during the eighties and nineties.
  • Topic: Agriculture, Climate Change, Economics, Rural, Industry, Ecology, Farming
  • Political Geography: Latin America, Peru
  • Author: Carmen Ponce
  • Publication Date: 05-2018
  • Content Type: Working Paper
  • Institution: Group for the Analysis of Development (GRADE)
  • Abstract: Crop diversification, selection of tolerant crops, and intercropping are some of the strategies that Andean farmers, as well as farmers in other mountain regions, have historically used to cope with climate-related risks and take advantage of heterogeneous agricultural land (with plots located at different altitudes, facing different environmental conditions). This study analyzes the role of climate variability —during the growing season— in the use of these strategies, in a context of climate change in the Andean region. Using agrarian census data from 1994 and 2012 (district panel), the author finds that —controlling for other climate conditions and socio-economic factors—, an increase in intraseasonal climate variability leads farmers in colder areas (<11˚C during the growing season) to concentrate their crop portfolio into more tolerant crops and reduce intercropping (a practice potentially efficient at controlling pest and disease). This effect is especially strong in the Southern region. Given that Andean farmers received little to no help to adapt to climate change during the period under analysis, this study informs about farmers’ autonomous adaptation to climate changes and some specific issues that need to be part of the public intervention agenda.
  • Topic: Agriculture, Climate Change, Rural, Economic Development , Land, Ecology, Farming
  • Political Geography: Latin America, Peru