Climate-resilient practices and welfare impacts on rice-cultivating households in Vietnam: Does joint adoption of multiple practices matter?

Farmers have a long history of adjusting their production practices in response to changing production conditions. Using a multinomial endogenous treatment effects model that accounts for observable and unobservable heterogeneity, this study investigates the adoption and welfare impacts of climate-r...

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Bibliographic Details
Published in:The Australian journal of agricultural and resource economics 2023-01, Vol.67 (2), p.263-284
Main Authors: Kien, Nguyen Duc, Dung, Truong Quang, Oanh, Dinh Thi Kim, An, Le Thanh, Dinh, Nguyen Cong, Phan, Nguyen Thai, Nga, Le Thi Thanh
Format: Article
Language:English
Subjects:
adoption
climate-resilient practices
Crop Production/Industries
Environmental Economics and Policy
Research and Development/Tech Change/Emerging Technologies
rice production
Vietnam
welfare impact
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Summary:Farmers have a long history of adjusting their production practices in response to changing production conditions. Using a multinomial endogenous treatment effects model that accounts for observable and unobservable heterogeneity, this study investigates the adoption and welfare impacts of climate-resilient practices on Vietnamese rice-cultivating households. We found evidence of clear and positive welfare impacts from the adoption of canal irrigation (CI) and the joint adoption of agricultural conservation practices (CP) and CI as the main adaptation strategies to increase water stress. More importantly, although farmers with access to CI systems obtained the highest returns, the joint adoption of multiple practices still had substantially high adoption rates and significantly positive effects on rice yield, rice revenue and household income. Our findings indicate that farms' and farmers' characteristics, market information and climatic conditions are generally the main factors driving rice farmers' decisions to adopt climate-resilient technologies, both individually and jointly. Follow-up policy interventions should focus on improving CI systems and promoting the joint adoption of climate-resilient technologies to improve rice farmers' well-being and enhance their resilience capacity to cope with incoming climatic uncertainty.
ISSN:1467-8489
1467-8489
DOI:10.22004/ag.econ.343042